ICT-finance-growth nexus: Empirical evidence from the Next-11 countries

Authors

  • Rudra Prakash Pradhana Vinod Gupta School of Management, Indian Institute of Technology, Kharagpur 721302, India
  • Mak Arvin Department of Economics, Trent University, Peterborough, Ontario K9J 7B8, Canada
  • Mahendhiran Nair School of Business, Monash University Malaysia, Jalan Lagoon Selatan 47500, Malaysia
  • Sara Bennettd School of Business and Economics, Lynchburg College, Lynchburg, VA 24501, USA
  • Sahar Bahmani Department of Economics, University of Wisconsin at Parkside, Kenosha, WI 53144, USA

Keywords:

ICT penetration, Financial development, Economic growth, Panel VAR, Next-11 countries

Abstract

This study assesses the causal relationship between information and communication technology (ICT) penetration, financial development, and economic growth in Next-11 countries between 1961 and 2012. A panel vector auto-regressive (VAR) model is used to detect the direction of causality between ICT, financial sector development and economic growth for these countries. The results reveal that there is Granger-causality among the variables both in the short run and in the long run, although the exact nature of the results varies by the ICT penetration indicators for the sample countries. Empirical results from this study provide valuable insights on policies pertaining to ICT penetration, financial sector development and economic growth.

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Published

2017-05-01

Issue

Vol. 40 No. 113 (2017): Pages 83-190 (May-Agust 2017)

Section

Articles

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