SPREAD OF ICT AND ECONOMIC GROWTH IN PACIFIC ISLAND COUNTRIES: A PANEL STUDY

  • Keshmeer Kanewar Makun University of the South Pacific
  • T K Jayaraman University of Tunku Abdul Rahman
Keywords: ICT, Economic Growth, Pacific Island Countries, Panel Data

Abstract

This paper investigates the impact of information and communications technology (ICT) on economic growth in Pacific Island countries by employing an augmented production function model and panel data analysis from 2002 to 2017. The empirical findings reveal that ICT-related indicators have a positive and significant impact on the economic growth process, along with the fundamental variable of capital stock. The effect of control variables such as foreign direct investment and exports have a positive effect on the real gross domestic product per capita, whereas inflation has a negative effect. The sensitivity evaluation of ICT indicators with different control variables produces consistent evidence of ICT’s effect on economic growth. Policymakersas well as ICT stakeholders should enhance investments for improving ICT-relatedinfrastructure and promoting technology to boost economic growth in Pacific Islandcountries.

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Published
2020-01-31
How to Cite
Makun, K., & Jayaraman, T. (2020). SPREAD OF ICT AND ECONOMIC GROWTH IN PACIFIC ISLAND COUNTRIES: A PANEL STUDY. Buletin Ekonomi Moneter Dan Perbankan, 23, 109 - 128. https://doi.org/10.21098/bemp.v23i0.1178