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Information and Communication Technology (ICT) and Economic Growth in Iran: Causality Analysis

Jurnal Ekonomi Malaysia

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Title Information and Communication Technology (ICT) and Economic Growth in Iran: Causality Analysis
 
Creator Haghshenas, Mohammad
Kasimin, Hasmiah
Berma, Madeline
 
Subject ICT infrastructure, economicgrowth, causal relationship, Iran’s ICT
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Description ABSTRACTIran is currently implementing policy measures to increase the contribution of Information and Communication Technology (ICT) to economic performance. However, little attention is given to examining whether ICT investmentcontributes to the economic growth of Iran. Concerning the importance of the causal link between these two variables to national policy implications, the present study employs a Granger causality analysis to examine the cause and effect relationship between ICT infrastructure and output growth in a multivariate setting that includes labor and capital variables. The results indicate that a long-run equilibrium relationship exists between ICT development and economic growth. Furthermore, the findings provide evidence of significant uni-directional short-run causality running from economic growth to ICT development in the Iranian economy. In terms of policy implications, the findings support the idea that this relationship is sustainable. However, in the short-run, investing in other important sectors and promoting ICT-use should be a priority for boosting the development of the national economy and ICT.Keywords: ICT infrastructure, economicgrowth, causal relationship, Iran’s ICTABSTRAKIran sedang melaksana langkah-langkah dasar untuk meningkatkan sumbangan Teknologi Maklumat dan Komunikasi (ICT) kepada prestasi ekonomi. Walau bagaimanapun, sedikit perhatian diberi kepada memeriksa sama ada pelaburanICT menyumbang kepada pertumbuhan ekonomi Iran. Mengenai kepentingan hubungan bersebab antara kedua-dua pembolehubah kepada implikasi dasar negara, kajian ini menggunakan analisis kasualiti Granger untuk mengkajipunca dan kesan hubungan antara infrastruktur ICT dan pertumbuhan keluaran dalam persekitaran multivariat yang termasuk pembolehubah buruh dan modal. Hasil kajian menunjukkan bahawa hubungan keseimbangan jangka panjangwujud di antara pembangunan ICT dan pertumbuhan ekonomi. Tambahan pula, penemuan memberikan bukti penting uni-arah sebab-musabab jangka pendek berlaku daripada pertumbuhan ekonomi kepada pembangunan ICT dalamekonomi Iran. Dari segi implikasi dasar, penemuan menyokong idea bahawa hubungan ini adalah mampan. Walaubagaimanapun, dalam jangka pendek, pelaburan dalam sector penting yang lain dan menggalakan penggunaan ICTharus menjadi keutamaan untuk meningkatkan pembangunan ekonomi negara dan ICT.Kata kunci: Infrastruktur ICT, pertumbuhan ekonomi, hubungan sebab-musabab, ICT Iran
 
Publisher Universiti Kebangsaan Malaysia
 
Contributor —
 
Date 2013-12-31
 
Type info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
Peer-reviewed Article
 
Format application/pdf
 
Identifier http://ejournal.ukm.my/jem/article/view/7265
 
Source Jurnal Ekonomi Malaysia; Vol 47, No 2 (2013): Jurnal Ekonomi Malaysia; 55-68
0126-1962
 
Language eng
 
Relation http://ejournal.ukm.my/jem/article/view/7265/2919