Determinants of Advancement in Information Communication Technologies and its Prospect under the role of Aggregate and Disaggregate Globalization

Audi, Marc and Ali, Amjad and Al-Masri, Razan (2021): Determinants of Advancement in Information Communication Technologies and its Prospect under the role of Aggregate and Disaggregate Globalization.

Abstract

This article has examined the impact of aggregate and disaggregate globalization on the advancement of information and communication technologies (ICT) in the case of 87 developed and developing countries for 2000-2019. Panel least square and pairwise Dumitrescu-Hurlin panel causality tests have been used for empirical analysis. We have divided our empirical analysis into six models, i.e. aggregate globalization model for whole sample countries, disaggregate globalization model for whole sample countries, aggregate globalization model for developed countries, disaggregate globalization model for developed countries, aggregate globalization model for developing countries, and disaggregate globalization model for developing countries. Our estimated outcomes of the aggregate globalization model for the whole sample countries and developing countries show that globalization has a positive and significant impact on the advancement of information and communication technology. Our outcomes show that economic globalization, social globalization, political globalization, and availability of physical capital have a positive and significant impact on the advancement of ICT in developing countries. In the case of developed countries, aggregate globalization, political globalization, and social globalization reduce the advancement of ICT, whereas the availability of physical capital and economic globalization are raising the advancement of ICT. The results of the causality test show that all the variables have a causal relationship with each other except some variables of developed countries in the disaggregate globalization model. Our outcomes recommend that developing countries should promote aggregate and disaggregate globalization to achieve the desired level of ICT.

• Item Type: MPRA Paper
• Language: English
• Keywords: ICT, Globalization, Economic Globalization, Social Globalization, Political Globalization
• Subjects: F - International Economics > F5 - International Relations, National Security, and International Political Economy; F - International Economics > F6 - Economic Impacts of Globalization

References

Ahmed, E. M. (2012). Are the FDI inflow spillover effects on Malaysia's economic growth input driven?. Economic Modelling, 29(4), 1498-1504.

Ali, A. (2015). The Impact of Macroeconomic Instability on Social Progress: An Empirical Analysis of Pakistan. Ph.D Dissertation. NCBA&E, Lahore, Pakistan., 1-152.

Ali, A., & Rehman, H. U. (2015). Macroeconomic instability and its impact on gross domestic product: an empirical analysis of Pakistan. Pakistan Economic and Social Review, 285-316.

Arndt, S. W. (1998). Globalization and the Gains from Trade. In Trade, growth, and economic policy in open economies (pp. 3-12). Springer, Berlin, Heidelberg.

Audi, M., Ali, A., & Roussel, Y. (2021). The Advancement in Information and Communication Technologies (ICT) and Economic Development: A Panel Analysis. International Journal of Innovation, Creativity and Change, 15(4), 1013-1039.

Barro, R. J. (2013). Inflation and economic growth. Annals of Economics & Finance, 14(1).

Baumol, W. J. (1986). Productivity growth, convergence, and welfare: what the long-run data show. The american economic review, 1072-1085.

Bentivegna, S. (2006). Rethinking politics in the world of ICTs. European journal of communication, 21(3), 331-343.

Berndt, E. R., Morrison, C. J., & Rosenblum, L. S. (1992). High-tech capital formation and labor composition in US manufacturing industries: an exploratory analysis.

Bhandari, A. K., & Heshmati, A. (2005). Measurement of globalization and its variations among countries, regions and over time. Regions and Over Time (April 2005).

Bhandari, A. K., & Heshmati, A. (2005). Measurement of globalization and its variations among countries, regions and over time. Regions and Over Time (April 2005).

Bon, A., Akkermans, H., & Gordijn, J. (2016). Developing ICT services in a low-resource development context. Complex Syst. Informatics Model. Q., 9, 84-109.

Cameron, G. (1998). Economic growth in the information age: from physical capital to weightless economy. Journal of International Affairs, 447-471.

Carr, M., & Chen, M. A. (2002). Globalization and the informal economy: How global trade and investment impact on the working poor (pp. 92-2). Geneva: International Labour Office.

Carree, M., Van Stel, A., Thurik, R., & Wennekers, S. (2002). Economic development and business ownership: an analysis using data of 23 OECD countries in the period 1976–1996. Small business economics, 19(3), 271-290.

Chen, P. P., & Gupta, R. (2006). An investigation of openness and growth using panel estimation.

Chen, Y. M., & Lin, F. J. (2004, September). Measuring globalization of ICT industries: Empirical evidence across six economies of East Asia and over time. In IEEE International Conference on E-Commerce Technology for Dynamic E-Business (pp. 66-73). IEEE.

Cirera, X., Lage, F., & Sabetti, L. (2016). ICT use, innovation, and productivity: evidence from Sub-Saharan Africa. World Bank Policy Research Working Paper, (7868).

Comin, D., & Hobijn, B. (2004). Cross-country technology adoption: making the theories face the facts. Journal of monetary Economics, 51(1), 39-83.

Cooper, R. B., & Zmud, R. W. (1990). Information technology implementation research: a technological diffusion approach. Management science, 36(2), 123-139.

Crenshaw, E. M., & Robison, K. K. (2006). Jump-starting the Internet revolution: how structural conduciveness and global connections help diffuse the Internet. Journal of the Association for Information Systems, 7(1), 3.

Daveri, F. (2000). Is growth an information technology story in Europe too? (No. 2000-12). EPRU Working Paper Series.

Deaton, A. (2003). Health, inequality, and economic development. Journal of economic literature, 41(1), 113-158.

Dollar, D., & Kraay, A. (2004). Trade, growth, and poverty. The economic journal, 114(493), F22-F49.

Dumont, J. C., & Lemaître, G. (2005). Counting immigrants and expatriates in OECD countries: a new perspective.

Elliott, L. (2004). The global politics of the environment. In The global politics of the environment (pp. 223-238). Palgrave, London.

Farouq, I. S., Sulong, Z., & Sanusi, S. S. (2020). The empirical relationship between economic growth, ICT, financial globalization uncertainty and financial development: Evidence from selected leading African economies. Islamic University Multidisciplinary Journal, 7(3), 1-14.

Fosu, A. K. (1990). Exports and economic growth: the African case. World Development, 18(6), 831-835.

Freund, C., & Bolaky, B. (2008). Trade, regulations, and income. Journal of development economics, 87(2), 309-321.

Friedman, J. (Ed.). (2004). Globalization, the state, and violence. AltaMira Press.

Garcia-Mila, T., & McGuire, T. J. (1992). The contribution of publicly provided inputs to states' economies. Regional science and urban economics, 22(2), 229-241.

Ghosh, D. K., & Ortiz, E. (Eds.). (1997). The global structure of financial markets: an overview.

Gokal, V., & Hanif, S. (2004). Relationship between inflation and economic growth (Vol. 4). Suva: Economics Department, Reserve Bank of Fiji.

Goldberg, I. (2008). Globalization and technology absorption in Europe and Central Asia: the role of trade, FDI, and cross-border knowledge flows (No. 150). World Bank Publications.

Gore, C. (2003). Globalization, the international poverty trap and chronic poverty in the least developed countries.

Greenwald, B. C., & Stiglitz, J. E. (1986). Externalities in economies with imperfect information and incomplete markets. The quarterly journal of economics, 101(2), 229-264.

Hamelink, C. J. (1997). New information and communication technologies, social development and cultural change (Vol. 86). Geneva: United Nations Research Institute for Social Development.

Harris, R., & Moffat, J. (2013). Intangible assets, absorbing knowledge and its impact on firm performance: theory, measurement and policy implications. Contemporary social science, 8(3), 346-361.

Holtz-Eakin, D. (1993). Solow and the states: Capital accumulation, productivity, and economic growth. National Tax Journal, 46(4), 425-439.

Hulten, C. R., & Schwab, R. M. (1984). Regional productivity growth in US manufacturing: 1951-78. The American Economic Review, 74(1), 152-162.

Im, K. S., Pesaran, M. H., & Shin, Y. (2003). Testing for unit roots in heterogeneous panels. Journal of econometrics, 115(1), 53-74.

Islam, N. (2003). What have we learnt from the convergence debate?. Journal of economic surveys, 17(3), 309-362.

Juma, C., & Yee-Cheong, L. (2005). Innovation: applying knowledge in development (Vol. 14). Earthscan.

Kapurubandara, M., & Lawson, R. (2006). Barriers to Adopting ICT and e-commerce with SMEs in developing countries: an Exploratory study in Sri Lanka. University of Western Sydney, Australia, 82(1), 2005-2016.

Kataria, K., Curtiss, J., & Balmann, A. (2012). Drivers of agricultural physical capital development: Theoretical framework and hypotheses (No. 545-2016-38708).

Kim, W. T., Bae, S. J., Kim, J. G., & Joo, E. K. (2003). Performance of STBC with turbo code in HARQ scheme for mobile communication systems. In 10th International Conference on Telecommunications, 2003. ICT 2003. (Vol. 1, pp. 85-89). IEEE.

King, R. G., & Levine, R. (1993). Finance and growth: Schumpeter might be right. The quarterly journal of economics, 108(3), 717-737.

Lau, L. & Tokutso, I (1992). The Impact of Computer Technology on the Aggregate Productivity of the United States: An Indirect Approach. unpub. paper, Stanford Univ. Dept. of Economics, August.

Le Van, C., Nguyen, A. N., Nguyen, N. M., & Simioni, M. (2018). Growth strategy with social capital, human capital and physical capital—Theory and evidence: The case of Vietnam. Journal of Public Economic Theory, 20(5), 768-787.

Lechner, F. J., & Boli, J. (2008). World culture: Origins and consequences. John Wiley & Sons.

Levin, A., Lin, C. F., & Chu, C. S. J. (2002). Unit root tests in panel data: asymptotic and finite-sample properties. Journal of econometrics, 108(1), 1-24.

Lopez, A. D., Collishaw, N. E., & Piha, T. (1994). A descriptive model of the cigarette epidemic in developed countries. Tobacco control, 3(3), 242.

Lucas Jr, R. E. (1988). On the mechanics of economic development. Journal of monetary economics, 22(1), 3-42.

Lynch, K. (2006). Neo-liberalism and marketisation: The implications for higher education. European educational research journal, 5(1), 1-17.

Mago, S. & Mago, S. (2015). Information and communications technologies (ICTs) and livelihoods enhancement in agro-rural communities in Zimbabwe: Connections using the capabilities approach. Journal of Communication, 6(1), 93-103.

Mahler, V. A. (2004). Economic globalization, domestic politics, and income inequality in the developed countries: A cross-national study. Comparative Political Studies, 37(9), 1025-1053.

Mankiw, N. G., Phelps, E. S., & Romer, P. M. (1995). The growth of nations. Brookings papers on economic activity, 1995(1), 275-326.

Mayer, S. E., & Sarin, A. (2005). Some mechanisms linking economic inequality and infant mortality. Social science & medicine, 60(3), 439-455.

McKenney, J. L., & McFarlan, F. W. (1982). The information archipelago-maps and bridges. Harvard Business Review, 60(5), 109-119.

Morrison, C. J. (1997). Assessing the productivity of information technology equipment in US manufacturing industries. Review of Economics and Statistics, 79(3), 471-481.

Nadeem, M. A., Liu, Z., Ali, H. S., Younis, A., Bilal, M., & Xu, Y. (2020). Innovation and Sustainable Development: Does Aid and Political Instability Impede Innovation?. SAGE Open, 10(4), 2158244020973021.

Nadiri, M. I., & Mamuneas, T. (1996). Contribution of highway capital to industry and national productivity growth.

Nasir, S., & Kalirajan, K. (2016). Information and communication technology-enabled modern services export performances of Asian economies. Asian Development Review, 33(1), 1-27.

Ng, J. J., & Li, K. X. (2003). Implications of ICT for knowledge management in globalization. Information management & computer security.

Niebel, T. (2018). ICT and economic growth–Comparing developing, emerging and developed countries. World Development, 104, 197-211.

Obstfeld, M., & Rogoff, K. S. (1998). Risk and exchange rates.

O'Donnell, D., & Henriksen, L. B. (2002). Philosophical foundations for a critical evaluation of the social impact of ICT. Journal of information Technology, 17(2), 89-99.

Pablo-Romero, M. D. P., & Gómez-Calero, M. D. L. P. (2013). A translog production function for the Spanish provinces: Impact of the human and physical capital in economic growth. Economic Modelling, 32, 77-87.

Parsons, D., Gotlieb, C. C., & Denny, M. (1993). Productivity and computers in Canadian banking. In Productivity issues in services at the micro level (pp. 91-109). Springer, Dordrecht.

Pereira, A. M., & De Frutos, R. F. (1999). Public capital accumulation and private sector performance. Journal of Urban economics, 46(2), 300-322.

Poh, K. L., Ang, B. W., & Bai, F. (2001). A comparative analysis of R&D project evaluation methods. R&D Management, 31(1), 63-75.

Polder, M., Van Leeuwen, G., Mohnen, P., & Raymond, W. (2010). Product, process and organizational innovation: drivers, complementarity and productivity effects.

Pope, J., Annandale, D., & Morrison-Saunders, A. (2004). Conceptualising sustainability assessment. Environmental impact assessment review, 24(6), 595-616.

Prakash, A., & Hart, J. A. (Eds.). (1999). Globalization and governance (Vol. 1). Psychology Press.

Pulkkinen, J. (2007). Cultural globalization and integration of ICT in education. Educational technology: Opportunities and challenges, 13-23.

Qian, Y., & Roland, G. (1996). The soft budget constraint in China. Japan and the World Economy, 8(2), 207-223.

Redding, S. (1999). Dynamic comparative advantage and the welfare effects of trade. Oxford economic papers, 51(1), 15-39.

Rikowski, R. (2003). Value—the life blood of capitalism: knowledge is the current key. Policy Futures in Education, 1(1), 160-178.

Robinson, D. P., & Kelejian, H. H. (1994). Local Public Finance Impact Model: User's Guide and Technical Documentation. Army Engineer Inst For Water Resources Fort Belvoir VA.

Rodrik, D. (1998). Why do more open economies have bigger governments?. Journal of political economy, 106(5), 997-1032.

Rodrik, D. (2006). Goodbye Washington consensus, hello Washington confusion? A review of the World Bank's economic growth in the 1990s: learning from a decade of reform. Journal of Economic literature, 44(4), 973-987.

Romer, P. M. (1986). Increasing returns and long-run growth. Journal of political economy, 94(5), 1002-1037.

Romer, P. M. (1990). Capital, labor, and productivity. Brookings papers on economic activity. Microeconomics, 1990, 337-367.

Sagi, J., Carayannis, E., Dasgupta, S., & Thomas, G. (2004). ICT and business in the new economy: globalization and attitudes towards eCommerce. Journal of Global Information Management (JGIM), 12(3), 44-64.

Saich, T. (2000). Negotiating the state: The development of social organizations in China. The China Quarterly, 161, 124-141.

Sassen, S. (2004). Local actors in global politics. Current sociology, 52(4), 649-670.

Schreyer, P. (2000). The contribution of information and communication technology to output growth: a study of the G7 countries.

Sen, A. K. (2002). Globalization, inequality and global protest. Development, 45(2), 11-16.

Shirazi, F., Gholami, R., & Higón, D. A. (2009). The impact of information and communication technology (ICT), education and regulation on economic freedom in Islamic Middle Eastern countries. Information & Management, 46(8), 426-433.

Shirazi, F., Ngwenyama, O., & Morawczynski, O. (2010). ICT expansion and the digital divide in democratic freedoms: An analysis of the impact of ICT expansion, education and ICT filtering on democracy. Telematics and Informatics, 27(1), 21-31.

Sidrauski, M. (1967). Inflation and economic growth. Journal of political economy, 75(6), 796-810.

Sindzingre, A. N. (2005). Explaining threshold effects of globalization on poverty: an institutional perspective. UNU-WIDER Research Paper, (2005/53).

Solow, R. M. (1956). A contribution to the theory of economic growth. The quarterly journal of economics, 70(1), 65-94.

Stanley, TD, Doucouliagos, Chris, & Steel, Piers. (2015). Does ICT Generate Economic Growth? A Meta-Regression Analysis: Deakin University, Faculty of Business and Law, School of Accounting, Economics and Finance.

Steinmueller, W. E. (2001). ICTs and the possibilities for leapfrogging by developing countries. Int'l Lab. Rev., 140, 193.

Stiglitz, J. (2002). Development policies in a world of globalization. In New International Trends for Economic Development Seminar.

Stiglitz, J. E. (1988). Economic organization, information, and development. Handbook of development economics, 1, 93-160.

Stiglitz, J. E. (1989). Reflections on the State of Economics: 1988.

Summers, L. H. (2000). International financial crises: causes, prevention, and cures. American Economic Review, 90(2), 1-16.

Ulaşan, B. (2015). Trade openness and economic growth: panel evidence. Applied Economics Letters, 22(2), 163-167.

West, D., & Heath, D. (2011). Theoretical pathways to the future: Globalization, ICT and social work theory and practice. Journal of Social Work, 11(2), 209-221.

Wolf, M. (2005). Will globalization survive?. World Economics-Henley on Thames-, 6(4), 1.

Wolfensohn, J. D. (1998). Proposal for a comprehensive development framework [for World Bank policy]: a discussion draft.

Young, A. (1991). Learning by doing and the dynamic effects of international trade. The Quarterly Journal of Economics, 106(2), 369-405.