Information and Communication Technology (ICT) and Economic Growth in ASEAN-5 Countries

Abstract

Digital economy generally refers to a digital technology-based economy. The embrace of digital economy is transforming a nation's economic growth. Countries blessed with successful digitisation will improve their economic performance; hence, it could increase country's GDP growth. In this respect, ASEAN-5 countries becoming a major economic force driver in Asia as well as to the global growth. The goal of this research is therefore to investigate the relationship between ICT and economic growth in the ASEAN-5 countries over the 2003 to 2018 study period. Using static and dynamic panel data estimation, results shows that fixed telephone line subscription has the greatest impact on ICT on economic growth. The findings suggest countries shall focus on the innovation of ICT especially on the mobile-cellular telephone subscription and fixed telephone line subscription to achieve economic growth. Investments in ICT infrastructure foster co-operation in ICT technology as well as advancing ICT particularly on the rise in jobs in the ICT sector, transforming government services into digital form to enhance economic growth in the country.

Impacts of Information and Communication Technologies infrastructure development on economic growth: An empirical study of Southeast Asian countries

“…Also, when employing the GMM estimator for the sample of ASEAN nations, ICT variables have positive coefficients on the dependent variable. These results are contrary to some studies on sub-samples of the region that show almost insignificant effects of ICT development when using traditional panel estimation techniques 8,18 . This suggests that when controlling bias such as omitted variables, heteroskedasticity, endogeneity, and auto correlation, the effects of explanatory variables are statistically significant.…”

“…Sapuan and Roly found that economic growth is positively and significantly improved by fixed broadband subscriptions 9 . However, Yong Jing and Ab-Rahim found insignificant coefficients of this variable on GDP of ASEAN-5 countries, which can be explained by differences in analyzing methods and data collection 8 . In addition, it was found that different income groups have different effects of fixed broadband subscriptions.…”

“…This includes postpaid and prepaid subscriptions and includes analogue and digital cellular systems. Yong Jing and Ab-Rahim claimed that the variable "Mobile Cellular Telephone Subscriptions" positively and significantly contributes to the economic growth of ASEAN-5 countries 8 . Meanwhile, Albiman and Sulong proved that mobile cellular subscriptions have negative effects on economic growth in the short run and positive effects in the long run 7 .…”

“…Even in some studies on the ASEAN, samples were only small parts of the region. For instance, Yong Jing and Ab-Rahim only used 5 ASEAN nations for their sample, which later showed that insignificant effects of fixed broadband on economic growth 8 , while Sapuan and Roly found significant contribution of ICT variables on 8 ASEAN countries 9 . For the reasons above, the author acknowledges certain research gaps in previous studies.…”

Green logistics and environment, economic growth in the context of the Belt and Road Initiative

“…In addition, the positive impact of logistics was more pronounced in relatively underdeveloped provinces. Yong Jing and Ab-Rahim (2020) also found that telecommunications infrastructure positively impacted economic growth in both developed and developing countries. The above studies emphasize the necessity of green logistics and promote the operation of green logistics through continuous economic policies to obtain competitive returns, but fail to analyze the promotion of economic development in the process of green logistics operation.…”