How Does Information and Communication Technologies Affect Economic Growth? A Comparative Analysis of the Economies of the European Union and Asia-Pacific Region

Tamerlan Mashadihasanli; Haluk Zülfikar

Article Details

How Does Information and Communication Technologies Affect Economic Growth? A Comparative Analysis of the Economies of the European Union and Asia-Pacific Region

Authors:

Tamerlan Mashadihasanli | Haluk Zülfikar

Publisher:

Istanbul University

Main Topics:

Makro İktisat (Diğer)

Journal:

İktisat Politikası Araştırmaları Dergisi Vol.11 Issue 1, pp.99-114

Document Type:

Article

Publication Date:

2/2024

Document Language:

English

Document ID (Org No.):

2001314052

pISSN:

2148-3876

Keywords:

Abstract:

 In the contemporary era of digitization, economies have been significantly influenced by the emergence of information and communication technology ICT. In this digital age, the ICT sector all over the world has entered a period of rapid growth. The swift advancements within the ICT sector have played a pivotal role in shaping the global economy while simultaneously influencing the economic landscape of the European Union EU and Asia-Pacific region APAC countries. The purpose of this study is to comparatively evaluate ICT, its place in the EU and APAC countries economies, and how it affected economic growth between 2007-2019. The dataset was analyzed using the Levin, Lin, and Chu unit root test, pooled ordinary least-squares OLS, fixed effects, random effects, and two-step system generalized method of moments GMM estimators. The two-step system GMM findings show ICTs effects on economic growth to vary according to regional conditions. While Internet use has been found to contribute positively to the economic growth of the countries within the EU, this situation was observed to have had the opposite effect in the APAC region countries. These region-specific dynamics highlight the need for tailored policy considerations, suggesting the impact of ICT on economic development to be contingent upon regional conditions. The novelty of this research lies in its cross-regional perspective, thus contributing valuable knowledge for informed policy decisions in the increasingly interconnected global landscape. This study emphasizes the importance of regional dynamics in understanding the influence ICT has on economic growth and can guide policy makers and business leaders in shaping ICT strategies and investments according to regional characteristics. JEL Classification : O11 , O20 , O33.

 In the contemporary era of digitization, economies have been significantly influenced by the emergence of information and communication technology ICT. In this digital age, the ICT sector all over the world has entered a period of rapid growth. The swift advancements within the ICT sector have played a pivotal role in shaping the global economy while simultaneously influencing the economic landscape of the European Union EU and Asia-Pacific region APAC countries. The purpose of this study is to comparatively evaluate ICT, its place in the EU and APAC countries economies, and how it affected economic growth between 2007-2019. The dataset was analyzed using the Levin, Lin, and Chu unit root test, pooled ordinary least-squares OLS, fixed effects, random effects, and two-step system generalized method of moments GMM estimators. The two-step system GMM findings show ICTs effects on economic growth to vary according to regional conditions. While Internet use has been found to contribute positively to the economic growth of the countries within the EU, this situation was observed to have had the opposite effect in the APAC region countries. These region-specific dynamics highlight the need for tailored policy considerations, suggesting the impact of ICT on economic development to be contingent upon regional conditions. The novelty of this research lies in its cross-regional perspective, thus contributing valuable knowledge for informed policy decisions in the increasingly interconnected global landscape. This study emphasizes the importance of regional dynamics in understanding the influence ICT has on economic growth and can guide policy makers and business leaders in shaping ICT strategies and investments according to regional characteristics. JEL Classification : O11 , O20 , O33.

 In the contemporary era of digitization, economies have been significantly influenced by the emergence of information and communication technology ICT. In this digital age, the ICT sector all over the world has entered a period of rapid growth. The swift advancements within the ICT sector have played a pivotal role in shaping the global economy while simultaneously influencing the economic landscape of the European Union EU and Asia-Pacific region APAC countries. The purpose of this study is to comparatively evaluate ICT, its place in the EU and APAC countries economies, and how it affected economic growth between 2007-2019. The dataset was analyzed using the Levin, Lin, and Chu unit root test, pooled ordinary least-squares OLS, fixed effects, random effects, and two-step system generalized method of moments GMM estimators. The two-step system GMM findings show ICTs effects on economic growth to vary according to regional conditions. While Internet use has been found to contribute positively to the economic growth of the countries within the EU, this situation was observed to have had the opposite effect in the APAC region countries. These region-specific dynamics highlight the need for tailored policy considerations, suggesting the impact of ICT on economic development to be contingent upon regional conditions. The novelty of this research lies in its cross-regional perspective, thus contributing valuable knowledge for informed policy decisions in the increasingly interconnected global landscape. This study emphasizes the importance of regional dynamics in understanding the influence ICT has on economic growth and can guide policy makers and business leaders in shaping ICT strategies and investments according to regional characteristics. JEL Classification : O11 , O20 , O33.

 Çağdaş dĳitalleşme çağında ekonomi, bilgi ve iletişim teknolojilerinin BİT ortaya çıkmasından önemli ölçüde etkilenmektedir. İçinde bulunduğumuz dĳital çağda tüm dünyada BİT sektörü hızlı bir büyüme sürecine girmiştir. Bu hızlı ilerlemeler, BİT sektörlerinde, dünya ekonomisini ve buna paralel olarak Avrupa Birliği AB ve Asya-Pasifik bölgesi APAC ülkelerinin ekonomisini etkileme eğilimindedir. Bu çalışmanın yürütülmesindeki amaç BİTin AB ve APAC ülkeleri ekonomisindeki yeri ve ekonomik büyümeyi nasıl etkilediği konusunda 2007-2019 yılları arasında karşılaştırmalı bir değerlendirme yapmaktır. Veri seti Levin, Lin  Chu birim kök testi, Pooled OLS, Sabit Etkiler, Rastgele Etkiler ve iki adımlı sistem Genelleştirilmiş Momentler GMM tahmin edicileri kullanılarak analiz edilmiştir. İki aşamalı sistem GMM bulguları, BİTin ekonomik büyüme üzerindeki etkilerinin bölgesel koşullara göre değişebileceğini göstermektedir. AB ülkelerinde internet kullanımının ekonomik büyümeyi olumlu etkilediği saptanırken, APAC bölgesi ülkelerinde bu durumun tam tersi etki yarattığı gözlemlenmiştir. Bu bölgeye özgü dinamikler, özel politika değerlendirmelerine olan ihtiyacın altını çiziyor ve BİTin ekonomik kalkınmadaki rolünün bölgesel koşullara bağlı olduğunu öne sürüyor. Araştırmamızın yeniliği, giderek birbirine bağlanan küresel ortamda bilinçli politika kararlarına değerli bilgiler katan bölgeler arası perspektifinde yer almaktadır. Bu çalışma, BİTin ekonomik büyüme üzerindeki etkilerinin anlaşılmasında bölgesel dinamiklerin önemini vurgulamakta ve politika yapıcılara ve iş dünyası liderlerine BİT stratejilerini ve yatırımlarını bölgesel özelliklere göre şekillendirmede yol göstermektedir. Jel Sınıflaması: O11, O20, O33.

Article Details

How Does Information and Communication Technologies Affect Economic Growth? A Comparative Analysis of the Economies of the European Union and Asia-Pacific Region

Authors:

Tamerlan Mashadihasanli | Haluk Zülfikar

Publisher:

Istanbul University

Main Topics:

Makro İktisat (Diğer)

Journal:

İktisat Politikası Araştırmaları Dergisi Vol.11 Issue 1, pp.99-114

Document Type:

Article

Publication Date:

2/2024

Document Language:

English

Document ID (Org No.):

2001314052

pISSN:

2148-3876

ICT

economic growth

GMM

European Union countries

Asia-Pacific region countriesBİT

ekonomik büyüme

GMM

Avrupa Birliği ülkeleri

Asya-Pasifik bölgesi ülkeleri

Issues

Article Details

Authors: Tamerlan Mashadihasanli | Haluk Zülfikar

Publisher: Istanbul University

Main Topics: Makro İktisat (Diğer)

Journal: İktisat Politikası Araştırmaları Dergisi Vol.11 Issue 1, pp.99-114

Document Type: Article

Publication Date: 2/2024

Document Language: English

Document ID (Org No.): 2001314052

pISSN: 2148-3876

Issues

Authors:

Tamerlan Mashadihasanli | Haluk Zülfikar

Publisher:

Istanbul University

Main Topics:

Makro İktisat (Diğer)

Journal:

İktisat Politikası Araştırmaları Dergisi Vol.11 Issue 1, pp.99-114

Document Type:

Article

Publication Date:

2/2024

Document Language:

English

Document ID (Org No.):

2001314052

pISSN:

2148-3876