IDEAS home Printed from https://ideas.repec.org/a/taf/titdxx/v28y2022i3p468-487.html
   My bibliography  Save this article

Institutional development in an information-driven economy: can ICTs enhance economic growth for low- and lower middle-income countries?

Author

Listed:
  • Rudra P. Pradhan
  • Mak B. Arvin
  • Mahendhiran Nair
  • John H. Hall
  • Sara E. Bennett

Abstract

The information and communication technology (ICT) revolution has brought positive spill-over effects on institutions and economies across the globe, but it has also increased the information gaps between countries. A key characteristic that may explain these widening gaps is the deepening endogenous relationships between ICT infrastructure, institutions of governance, and economic growth in many developing countries. Thus far, the links between these variables have not been discernible in developing economies, so few studies have explored them. In this paper, we investigate the possible Granger causal relationships among institutional quality, economic growth, and ICT infrastructure development for a sample of developing countries for the period from 2005 to 2019. The application of a vector error-correction model reveals strong inter-relationships between all the variables in the short run. In the long run, institutional quality and ICT infrastructure development stimulate economic growth. These complex relationships are explored and lessons are drawn for policymakers.RESEARCH HIGHLIGHTSWe assess interactions between institutional quality and ICT infrastructure as well as economic growth.We deploy a panel Granger causality test for low- and lower middle-income countries from 2005 to 2019.We show that there is Granger causality between the variables in the short and the long term.For each case and specification, there is support for the hypothesis that ICT infrastructure and institutional quality both Granger-cause growth in the economy.In the short run, we note a feedback relationship between institutional quality and economic growth. Other short-run results are more varied, based on the particulars proxies for institutional quality and ICT infrastructure.

Suggested Citation

  • Rudra P. Pradhan & Mak B. Arvin & Mahendhiran Nair & John H. Hall & Sara E. Bennett, 2022. "Institutional development in an information-driven economy: can ICTs enhance economic growth for low- and lower middle-income countries?," Information Technology for Development, Taylor & Francis Journals, vol. 28(3), pages 468-487, July.
    • Handle: RePEc:taf:titdxx:v:28:y:2022:i:3:p:468-487
    DOI: 10.1080/02681102.2022.2051417
    as

    Download full text from publisher

    File URL: https://hdl.handle.net/10.1080/02681102.2022.2051417
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/02681102.2022.2051417?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Jesús Plaza de la Hoz & Zaida Espinosa Zárate & Celia Camilli Trujillo, 2024. "Digitalisation and poverty in Latin America: a theoretical review with a focus on education," Palgrave Communications, Palgrave Macmillan, vol. 11(1), pages 1-14, December.
    2. Zhihong Huang & Qianjin Zong & Xuerui Ji, 2022. "The associations between scientific collaborations of LIS research and its policy impact," Scientometrics, Springer;Akadémiai Kiadó, vol. 127(11), pages 6453-6470, November.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:titdxx:v:28:y:2022:i:3:p:468-487. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: https://www.tandfonline.com/titd20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.