South Asian Studies, Vol 34, No 1 (2019)

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ICT and E-government as the Sources of Economic Growth in Information Age: Empirical Evidence from South Asian Economies

Farzana Naheed Khan, M. Tariq Majeed

Abstract


The growing importance of information and communication technologies (ICTs) and egovernment has attracted the attention of policy makers who are committed to increase the GDP per capita of a country. Therefore, this study investigates the growth effects of ICT and egovernment for a sample of eight South Asian economies over the period 1980-2016. To the best of our knowledge, this is the first empirical study, which examines the relationship between economic growth and ICT with a special emphasis on the role of ICT implementation in public sector. In particular, we use diverse indicators of ICT to assess the robustness of empirical findings. Moreover, the study employs instrumental estimation techniques 2SLS and GMM to deal with the possible problem of endogeneity. The empirical findings of our study indicate that growth effects of ICT as well as e-government are positive and significant in all models. Finally, our study concludes that the South Asia region can greatly benefit from the implementation of ICT infrastructure in general and in public sector in particular

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