How much Has ICT Contributed to Iran Economic Growth

Document Type : Original Article

Authors

1 Economic Research Institute Tarbiat Modares University

2 ICT Research Institute, Iran

Abstract

In recent decades, an increasing emphasis has been placed on the role of productivity improvement in economic growth, especially in developing countries such as Iran. In this context, one of the main factors influencing the productivity and efficiency is information and communication technology (ICT). International experiences in economic growth, from supply side point of view, imply that ICT deployment has played a significant role in value added creation, especially in economic sub-sectors which are more ICT -intensive.
In this paper, we are going to assess the ICT impact on economic growth in Iran in a quantitative framework by using provincial data. In so doing, we apply parametric & non-parametric approaches (Panel Data & DEA techniques) in order to understand the average impact of ICT on economic growth (known as ICT productivity) as well as the relative status of provinces in terms of ICT contribution to economic growth (known as economic efficiency). Results of estimations imply that ICT could positively contribute to the economic growth and the relative economic efficiency of provinces in value added creation. Meanwhile, upon omitting ICT from our basic model, the efficiencies of provinces collapse significantly.

Keywords

References

Asongu, S. A., Biekpe, N., (2018). ICT, information asymmetry and market power in African banking Industry, Research in International Business and Finance, 44: 518–531.
Atrostic, B. K., Nguyen, S. V., (2005). IT and Productivity in US Manufacturing: Do Computer Networks Matter?’ Economic Enquiry, 43(3): 493-506.
Bloom N., et al., (2010). The Economic Impact of ICT”, Centre for Economic Performance, London School of Economics.
Business Monitor International, (2012). Iran Telecommunications Report Q4 2012.
Castelnovo, P., Florio, M., Forte, S., Rossi, L., (2018. The economic impact of technological procurement for large-scale research infrastructures: Evidence from the Large Hadron Collider at CERN, EmanuelaSirtori, Research Policy, 47: 1853–1867.
Cette, G., (2014). Does ICT Remain a Powerful Engine of Growth?” Banque de France. www.banque-france.fr.
Chung, H., (2018). ICT investment-specific technological change and productivity growth in Korea: Comparison of 1996–2005 and 2006–2015. Telecommunications Policy, 42: 78–90.
Dedrick, J., K. L., Kraemer, E. Shih, (2013). Information Technology and Productivity in Developed and Developing Countries. Journal of Management Information Systems, 30(1), pp. 97–122.
Dimelis, S., Papaioannou, S., (2010). FDI and ICT Effects on Productivity Growth: A Comparative Analysis of Developing and Developed Countries. European Journal of Development Research, 22(1): 79–96.
Engelbrecht H. J., Xayavong, V., (2006). ICT Intensity and New Zealand’s Productivity Malaise: Is the Glass Half Empty or Half Full?,Information Economics and Policy, 18, Issue 1.
Forth, J., Mason, G., (2003). Persistence of Skill Deficiencies across Sectors, 1999-2001, in G. Mason and R. Wilson (eds) Employers Skill Survey: New Analyses and Lessons Learned. Nottingham: Department for Education and Skills, 71-89.
Gordon, R., (2000). Does the New Economy Measure up to the Great Inventions of the Past?’ The Journal of Economic Perspectives, 14(4): 49-74.
Gordon, R., (2003). High-Tech Innovation and Productivity Growth: Does Supply Create its Own Demand?’ NBER Working Paper No 9437.
Gupta, M., Kumar, M., (2018).Impact of ICT Usage on Productivity of Unorganised Manufacturing Enterprises in India, The Indian Journal of Labour Economics, 61, pp.411–425.
IMF, (2001).World Economic Outlook. The Information Technology Revolution, Chapter III, International Monetary Fund, October. 103–42.
 Jorgenson, D.W., (2001). Information Technology in the US Economy, American Economic Review, 91, March, 1-32.
Jorgenson, D.W., Stiroh, K. J., (2000). Raising the Speed Limit: U.S. Economic Growth in the Information Age, Brookings Papers on Economic Activity, (1), pp. 125-211. From z: http://www.ny.frb.org/rmaghome/economist/stiroh/ks_grw.pdf.
Jorgenson, D. W., Griliches, Z., (1967). The Explanation of Productivity Change, Review of Economic Studies, 34.
Jorgenson, D.W., Ho, M. S., Stiroh, K., (2002). Projecting Productivity Growth: Lessons from the U.S. Growth Resurgence, Economic Review, Federal Reserve Bank of Atlanta, 87(3):1-13.
Liao, H., Wang, B., Li, B., Weyman-Jones, T., (2016). ICT as a general-purpose technology: The productivity of ICT in the United States revisited. Information Economics and Policy, 36:10–25.
Moradhassel, N., Mozayani A.H., (2013). The Role of National Information Network in Future Banking System, Second International Conference on Electronic banking and Payment Systems, Banking and Monetary Research Institute of Central Bank of I.R. Iran.
Mozayani A. H, Moradhassel, N., (2013). Is Service Sector Really ICT Intensive? The Case of Iran, the 7th National & 1st international Conference on Electronic Commerce and Economy, Iranian Electronic Commerce Association.
Oliner, S. D., Sichel, D., (1994). Computers and Output Growth: How Big is the Puzzle?’ Brookings Papers in Economic Activity, 2: 273-334.
Oliner, S.D., Sichel, D.E., (2000). The Resurgence of Growth in the late 1990’s: Is Information Technology the Story?’ Journal of Economic Perspectives, 14: 3-22
Oliner, S.D., Sichel, D. E., (2002). Information Technology and Productivity: Where Are We Now and Where Are We Going?’, Federal Reserve Board, mimeo.
Oyerinde, Y., Bankole, F., (2019). Measuring Efficiency and productivity of ICT Infrastructure Utilization, Proceedings of the 24th UK Academy for Information Systems International Conference, St Catherine's College, University of Oxford, 9th-10th April.
Piatkowski, M., (2003). The Contribution of ICT Investment to Economic Growth and LaborProductivity in Poland 1995-2000, TIGER Working Paper Series, No. 43.
Piatkowski, M., (2004).The Impact of ICT on Growth in Transition Economies, MPRA Paper No. 29399.
Pieri, F., Vecchi, M., Venturini, F., (2018).Modelling the joint impact of R&D and ICT on productivity: A frontier analysis approach, Research Policy, 47:1842–1852.
Pohjola, M., (2002).The new economy in growth and development.Oxford Review of Economic Policy, 18(3): 380-396.
Solow, R., (1957). Technical Change and the Aggregate Production Function’, Review of Economics and Statistics. August. 39(3): 312-20.
Stanley, T. D., Doucouliagos, H., Steel, P., (2018). Does ICT Generate Economic Growth? A Meta-Regression Analysis, Journal of Economic Surveys, 32(3): 705–726.
 Stiroh, K. J., (2004). Reassessing the Impact of IT in the Production Function: A Metaanalysis and Sensitivity Tests’ Mimeo, New York Federal Reserve.
Stiroh, K. J., (2002). Are ICT Spilovers Driving the New economy, Review of Income and Wealth, Federal Reserve Bank of New York, Series 48, No.1.
Strobel, T., (2018). ICT intermediates and productivity spillovers: Evidence from German and US manufacturing sectors. Structural Change and Economic Dynamics, 37:147–163.
Thomas, N., (2014). ICT and economic growth: Comparing developing,emerging and developed countries, ZEW Discussion Papers, No. 14-117
VAN Ark, B., Inklaar, R., (2005). Catching Up or Getting Stuck? Europe’s Troubles to Exploite ICT’s Productivity Potential’, GGDC Research Memorandum GD-79,  http://www.ggdc.net/pub/online/gd79 (online).
Van Roy, V., Vértesy, D., Vivarelli, M., (2018). Technology and employment: Mass unemployment or job creation? Empirical evidence from European patenting firms, Research Policy, 47: 1762–1776.
Vu,K. M, (2011). ICT as a source of economic growth in the information age: Empirical evidencefromthe1996–2005period, Telecommunications Policy, 35: 357–372.
Wolff, E., (2002). Productivity, Computerization and Skill Change’, NBER Working Papers 8743.
www.cbi.ir
www.itc.ir
www.worldbank.org – World Development Indicators.
 

Files

History

  • Receive Date: 06 March 2019
  • Accept Date: 26 August 2019
  • First Publish Date: 01 January 2020
  • Publish Date: 01 January 2020

Share

How to cite

Statistics