Its contribution to the GDP has increased to 5% in fiscal year 2020/2021 compared to 4.4% in 2019/2020. New media can also be contemplated as digital media. Key terms: Information and Communication Technologies, ICT Capital Services, Economic Growth, Income Groups JEL Classification: C23, E13, E22, O11, O43 Abstract The purpose of this study is to investigate if growth in ICT investments affects output growth differently across four income groups. 9-35. 199-220. According to economic expert knowledge is the only resource whose value increases instead of decreasing, therefore causes a lot of confusion among economists. With over four million subscribers, the site is yet another example of the impact ICT can have on economic growth in the region. ICT will help achieve efficient economic growth with the help of government-implemented regulations that stimulate citizens to use the Internet and become e-citizens and, in turn, e-consumers. We will write a custom Essay on ICT and Economic Growth specifically for you for only $16.05 $11/page. international competitiveness by encouraging the effective utilization of ICT equipment and software. In a nutshell, digital convergence either helps companies to enhance their revenue or optimize costs (The Intellect Digital Convergence Council, 2010, p. 9). In addition, Oulton (2010) demonstrates that although ICT contributes to the productivity growth in the short-term, significant returns can only be realized in the long ran, for instance, after three to eight years. } These new technologies have significantly shaped the nature of work and the general economy. Therefore, several multinational companies provide raw material and cooperate with local entities to have an assembly line in Egypt. Stiglitz, JE 1999, Public Policy for a Knowledge Economy, Department of Trade and Industry, London. "use strict"; The economies based on creation, dissemination and use of knowledge and information first emerged in a documented report presented by the Organization for Economic Co-operation and Development (OECD 2012). This way, the countries in the region will ensure that all the coming generations will be ready to take advantage of the benefits of ICT and participate actively in its development, implementation and management. A short summary of this paper. Secure .gov websites use HTTPS Due in part to the Covid-19 outbreak, Egypt has witnessed as acceleration of its digital transformation plan. The current economies are not only shaped by advancement in computer hardware and software, but also increased connectivity (Standards Australia, 2001, p. 20). ICTs, regardless of their place of manufacture, often always find their way into the markets of the developing countries where they are bought and sold. (function ($) { 2- Since our data set consists of 159 countries for 10 years; the dynamic pattern of the data cannot be ignored. Moreover, since the onset of zone develop-ment in developing countries, concerns have been raised about the impact of zones on employment Besides economic considerations, ICT has helped to tackle societal challenges in a reflective manner, for instance, it has improved access to education, health care delivery, efficiency and effectiveness of state functions, and the contribution of the general public in decision making. You can use them for inspiration, an insight into a particular topic, a handy source of reference, or even just as a template of a certain type of paper. In accordance with Gordon Moores principle, the power of the computer processors has considerably increased as well as the storage capacity. View WHAT I HAVE LEARNED IN ICT.pptx from CSC DATABASES at San Francisco State University. Solving analogies are difficult to answer, right? Most Asian giants, for instance, Japan and South Korea are understood to have the largest digitized advertising market. effect of the improvement in the ICT towards the output growth four different income groups. Roach SS 1987, Americas technology dilemma: a profile of the information economy Morgan Stanley Special Economic Study, vol. but overall on international economic, trade, and ICT issues the US was the dominant force. Most economic theories view economic growth in terms of labour productivity and growth in labour supply (Powell & Snellman, 2004, p. 208). OECD iLibrary Therefore, New Media and ICT have a direct and indirect impact on the growth and development of the economy (The Intellect Digital Convergence Council, 2010, p. 12; ICT QATAR 2012). A study on the impact of internet on the OECD countries established a positive correlation between ICT investment and companys output, but there were variations among companies (OECD 2012). However, the seeds of change and hope are being planted wherever countries have recognised the vital role of ICT in businesses prosperity, and have embraced reforms that have accelerated economic growth Moreover, ICT can impact the regions economic growth by bridging the digital divide by giving people access to ICT so they can empower themselves. ICT and Economic Growth. This will enhance efficiencies and competitiveness. It oversees the following organizations: The government is currently focused on moving towards a digital economy and accelerating the countrys digital transformation, which offer opportunities for ICT companies. The penetration of internet and mobile phone went from nil in the early 1990s to impressively high rates even in the poorest and most isolated nations. if ( number_show_ads > 0 ) { But while the use of information and communication technology seems to have had a substantial impact on the performance of the United States economy, the evidence for other countries is much weaker. Design/methodology/approach This study has used data collected from secondary sources. This is IvyPanda's free database of academic paper samples. New media and ICT have enabled diversification and growth of the economies by promoting innovations, free enterprises, creating well-paying job opportunities (particularly online jobs), and developing a skilled workforce by pooling together global intelligence. if ( number_hide_ads > 0 ) { Analysis of the impact of information communication technology on economic groth0 - Read online for free. Or consider purchasing the publication. ICT enables economic growth by broadening the reach of technologies such as high-speed Internet, mobile broadband, . and (2) what factors moderate the ICT-growth relationship? Download PDF. 1- There is correlation between the new error term () and the differenced lagged-dependent variable ( ). 2019. Information and Communication Technologies (ICTs) contribute massively to the global economy in terms of GDP. In order for the region to reap such economic benefits, a comprehensive and wide-ranging strategy on both regional and national levels that promotes ICT development through education and training is essential. Most economies are now aware of the significance of new media and ICT since the world is now moving towards a knowledge-based economy. This paper summarises some of the findings on the impacts of ICT, and examines results from aggregate, sectoral and firm-level studies. We invented and developed technologies to change our lives to their best. By April 2021, internet speed had reached an average of 39.6 Mbps from 6.5 Mbps in January 2019. The general objective of this study is to analyze the impact of ICT on the Nigerian economic growth and development and the following are the specific objectives: 1. Under its ICT 2030 strategy, the Egyptian government is undertaking a series of investments, capacity building and training programs, digital government services reforms, and infrastructure upgrades. The lack of proof of a positive correlation between investment in computing technology and productivity is what was referred to as productivity paradox. We also check whether the contributions of ICT enhance environmental quality, leading to sustainable economic growth. Enter the email address you signed up with and we'll email you a reset link. It does not provide a full overview of the literature,. Powell, WW, & Snellman, K 2004, The Knowledge Economy, Annual Reviews of Sociology, vol. All rights reserved, This website uses cookies to improve your experience. The World Economic Forum on the Middle East 2006 Business Agenda stated, The worlds greatest economies are led by businesses. with data on 53 african countries from 2005 to 2015 using mobile phones and fixed telephone subscriptions as indicators of ict, findings provide evidence that (1) trade is a significant and positive predictor of growth, (2) the impact of trade on growth differs significantly across africa's sub-regions, (3) the effect of ict adoption differs 2. We also examine the relationships among these variables in the short and long run. (2019, December 11). Studies reveal that sectors dealing in industrial and electronic machineries, for instance, computers contributed significantly to the resurgence (Nordhaus, 2001, p. 3). A. Macra Board Technical Committee Chairperson Chancy Gondwe said this in Blantyre during the opening of a World Radio Communications 2015 Consultative meeting in Blantyre. U.S. Department of Commerce Prior to this, Dr Koponen was the Head of HPs telecom Sales Division and Office manager at Ov Shell AB. As already mentioned, the role of ICT on the economy cannot be understood without exploring the significance of the knowledge economy (Stiglitz, 1999). change is the growth of multiple operating systems as a reality that informs any major suppliers to the enterprise IT market. This revenue is economic growth. 1 and Ch.2 listed in your course materials DD202A. The same link exists with investment in ICT. APDF readeris available from Adobe Systems Incorporated. It will include applied research centers for technology to facilitate technical training, software and applications development, and data design. This study develops an information and communication technology (ICT) penetration index and examines the link between ICT penetration and economic growth, trade openness and foreign direct investment in major trading nations from 2001 to 2018. That would pave the way for public as well as private sector success. The Economic Impacts of ICT-What Have We Learned Thus Far. It also has potential for promoting pleasure . The second section is a review of the relevant literature. Information and communication technology (ICT) is considered a significant factor in economic growth and development. This will transform Middle East economies by providing opportunities and skills that are valid in the global market as well as locally and regionally, and will develop an ICT infrastructure that can handle the requirements of todays world. In June 2020, the National Telecommunication Regulatory Authority launched its Mobile Number Portability (MNP) service, which enables mobile telephone subscribers to retain their phone numbers when switching network service providers. Black and Lynch (2000, p. 435) states that ICT investment enhances autonomy and the skills of the workforce. Cloud computing also assists companies to reduce administrative costs. The ministrys Digital Egypt Project aims to supply all government entities with fiber-optic cable connections. The current convergence value chain, which cuts across various sectors, has resulted into new business opportunities and threats. Most studies concur that technological changes increase the demand for skilled workforce compared to non-skilled workforce. There is a Data Privacy Protection law that was approved by the parliament in July 2020. Need a custom Essay sample written from scratch by "ICT and Economic Growth." An important challenge for OECD governments is how to seize greater benefits of information and communications technology (ICT) for economic growth and development. Please select the WEB or READ option instead (if available). "ICT and Economic Growth." 14, pp.4974. IvyPanda. Copyright 2022 - IvyPanda is operated by, International Marketing Plan for Introducing Apple iPhone to East Africa, New media technologies, ICTs, convergence and digitisation, Information Communications Technologies in the UK, Summary of The Article on The Impact of ICT on New Millennium Learners, Promotional Practice Report: How Spicy is McSpicy Campaign, E-Marketing for Small Businesses: Opening a Door into the World of Exciting Opportunities. As a result, they have created a Supreme Council for Information and Communication Technology to regulate and direct ICT development (ICT QATAR 2012). Therefore, knowledge-based economy is mainly concerned with knowledge creation, transmission and dissemination (Foss, 2002, p. 12). 42958. Appraising the benefits of the growing use of computing technology is not easy. The objective of this work is to propose a research study on the link between economic development, information and communication technology (ICT) and poverty reduction, and specifically in the country of Ethiopia. ICT for sustainable development in Africa! The first phase of Knowledge City, which will be located inside the NAC, is completed. Unlike many other tangible goods whose returns diminish with time, knowledge returns increase with consumption. The nations have been selected based on total trade volume. The Intellect Digital Convergence Council (2010, p. 10) emphasizes that the future only belongs to the economies that are harnessing ICT for socioeconomic gain. The use of information and communication technology (ICT) is directly related to economic growth. Most countries, for instance, Qatar has realized that without a strong commitment to improve the ICT their vision would never be realized. The productivity and success of a company and of the economy as a whole depends on the efficiency and effectiveness of assembling and utilizing knowledge. Stiroh KJ 2002, Are ICT spillovers driving the new economy? Review of Income Wealth, vol.1, pp. Also, new frequencies were allocated to mobile network operators with a budget of $1.17 billion. An investment of around 1 billion Egyptian pounds ($63 million) to update mobile networks in the main roads and areas within Egypt. The benefits from the New Economy should accrue as improvements in productivity and economic growth. Focusing on OPEC, Sepehrdoust and Ghorbanseresht (2019) find that ICT spur OPEC's economic growth from 2002 to 2015. ICT and the aspirations of the Middle East AFRICA TECH FESTIVAL THE HOME OF AFRICACOM, Conecta | Caribbean and Central America Telecom, Broadcasting, Software & Computer Services, and Telecommunications, Ebix Hosts Q3 Investor Call Wednesday, November 9, 2022 at 11:00 a.m. Share sensitive information only on official, secure websites. 4/5, pp. The advent of the internet and cloud computing have significantly reduced the cost of software and computing infrastructure. New media and ICT are playing a major role, both as a groundbreaking sector and as a facilitator of other sectors in the economy (Leonard, 1999, p. 2). It contains thousands of paper examples on a wide variety of topics, all donated by helpful students. There are other regulations under discussion such as data classification and data localization. Flew, T 2006, Introduction to New Media, Oxford University Press, London. Therefore, digital convergence is not only used as a means of communication but also for credit/money management, for instance, micro lending and mobile banking (Flew, 2006, p. 1). The Ministry of Communication and Information Technology (MCIT) has an initiative called Our Future is Digital and aims to train 100,000 young Egyptians and develop their ICT skills in areas of high market demand, including website design, data analysis, and digital marketing. Its contribution to the GDP has increased to 5% in fiscal year 2020/2021 compared to 4.4% in 2019/2020. Decent Life (Haya Karima) is a presidential initiative to raise the efficiency of the telecommunication infrastructure in villages. Decision makers evaluate the proposals according to the technical and commercial merits of the proposals. IvyPanda. 1. A case study conducted by Khajeh-Hosseini et al. While the digital divide is first and foremost a social issue, narrowing the split through education and investment also increases productivity and gives poorer segments of society the tools needed to participate in the global market and the information society. However, most literatures nowadays agree that investment in ICT has promoted productivity. Kuwaits E-Government Action Plan, Saudi Arabias Home Computing Initiative, the PC for Every Home initiative in Egypt and the National ICT Agenda in Iran, are all examples of governmental efforts to increase their nations ICT competency while developing their infrastructure. Contact us Copyright Connect-World 2022. 3. New media and ICTs have accelerated the creation of new knowledge. This clearly shows the complexity in evaluating macro-level data. However, proponents of ICT and the new media technologies argue that more jobs have been created by these technologies than the one that have been lost. Dr Koponen came to Wataniya Telecom with extensive telecommunications experience. This essay on ICT and Economic Growth was written and submitted by your fellow (2019) 'ICT and Economic Growth'. It needs to be aligned, through government support, with a fast-track programme to develop, implement and rapidly adopt ICT. (2010) on the migration from grid computing to cloud computing introduced the subject of third party cloud infrastructure. The rate of adopting digital convergence depends on organizational strategies, competition and technological advancement (Patel, 2008, p. 6). var number_hide_ads = "0"; Having recently celebrated our 24th anniversary, the Connect-World series of magazines is a forum where the highest-level decision makers in the ICT industry can air their views regarding the impact these technologies have upon regional and global development. Moreover, based on the dynamic nature of ICT, ICT use index shows wide variation. (5 s entences will do) . must. 1, pp. Earlier studies show a decline in productivity despite of massive spending on computing technology. This site contains PDF documents. Women Are Stampeding Into The Metaverse/Web3/Blockchain Space, As The NFT.LONDON Line-up Clearly Shows 30% Of The Blockchain Speakers Are Women, Compared To 10% 5 Years Ago, Telstra adds second antenna to Merredin ground station in Western Australia for Inmarsats revolutionary I-6 F1 satellite, Nokia takes ESG strategy to next level of impact, metatalent.ai joins the global reskill and upskill revolution with its AI-powered talent marketplace. Whats more, ICT may also hold the key to increasing economic efficiency in the region through the use of secure, more comprehensive, national and region-wide systems in the e-government sector that would eliminate the largely porous and disassociated networks that are not significantly more efficient than the filing cabinet and rubber-stamp systems. Online sites like Maktoob.com, that was recently awarded the Information and Knowledge Portal of the Year award at the 12th Middle East ICT Excellence Awards in Dubai, is a leading example of the power of investing in comprehensive online content in Arabic, and providing an incentive for Arabic-speaking individuals to be connected to the World Wide Web. The spread of ICT in developing countries has been even more remarkable. It elaborates on measures of the digital economy/information society, emphasizing the role of complementary factors to ICT that are crucial for the productive use of these General Purpose Technologies. Purpose The aim of this study is to examine the impact of foreign direct investment (FDI) inflow and information and communication technology (ICT) on the economic performance of India by analysing annual data from 1991 to 2019. Harri Koponen is the CEO and General Manager of Wataniya Telecom. In addition, trade openness and gross fixed capital formation (GFCF) have a positive and significant effect on economic growth. ICT in the Middle East can impact economic growth in the region by bringing a wide range of industries, institutions, as well as its workforce, onto an equal footing with leading global economies. December 11, 2019. https://ivypanda.com/essays/ict-and-economic-growth/. A research was conducted to examine the link between ICT capital intensity and labour productivity among US industries from early 70s to late 90s. The amount of cellular phone internet usage has increased by 35%, and international calls by 19%. Nonetheless, the impact of these technologies on the economy still remains to a certain extent obscure with the critics and proponents giving their opinions without considering the real facts (CIO Communications, 2000, p. 3). Total investments in the sector in year 2020/2021 has reached almost $3 billion. There is a free trade agreement with Europe which makes products from European suppliers very competitive as there are no customs applied. The Information and Communications Technology (ICT) sector in Egypt is very robust, with a growth rate higher than Egypts overall level of GDP growth, equivalent to 16% in fiscal year 2020/2021 compared to 15.2%in year 2019/2020. Close suggestions Search Search. Kuwaits E-Government Action Plan, Saudi Arabias Home Computing Initiative, Egypts PC for Every Home initiative, Irans National ICT Agenda and ict Qatar are all examples of programmes designed to help the Middle East became part of the information economy. In June 2020, the Egyptian government announced a plan to improve the infrastructure for internet services by increasing the average internet speed. Kuwait, for example, recently signed a Strategic Partnership Agreement to expand the use of ICT to further a knowledge-driven economy and help support Kuwaits E-government initiatives. The Intellect Digital Convergence Council 2010, Capitalizing on Convergence, IDCC, London. The governments ongoing digital transformation offers U.S. companies with proven technologies and competitive pricing various opportunities. Croatian, So, far! Although the implementation of such strategies in the region is currently far from holistic in its approach, some governments are aggressively pursuing and investing in national ICT development plans in different forms. Digital convergence across ICT, media, and other content sectors provides new opportunities for organizations and the general consumers. Moreover, they found that ICTs empowered citizens by enabling access to free online educational material and news and by enhancing the "voice" of the people through online forums. This incidence baffled many economists. Kumar et al. Policy missteps by the Federal Government, especially on issues bordering the telecommunications sector, lingering insecurity Part of Vision 2030 is to increase localization through increasing the local content. Although the Middle East and North Africa, MENA, countries face enormous obstacles to self-sustaining growth, businesses can play a greater role in promoting reform and global competitiveness. https://ivypanda.com/essays/ict-and-economic-growth/, IvyPanda. ICT in the Middle East can impact economic growth in the region by bringing a wide range of industries, institutions, as well as its workforce, onto an equal footing with leading global economies. The improved computer capacities together with the expanded networks have significantly transformed commerce and industries (US Department of Commerce, 2000, p. 4). 56, pp. The Economic Impacts of ICT-What Have We Learned Thus Far. By addressing such issues, the region can ensure that its labour force meets the needs that ICT development will create. Craig Barrett reveals that digital convergence is creating more products that are even harder to classify. Findings made from the study revealed the following: ICT is important to Nigeria economy. Most of the macroeconomic studies have paid much attention on the relationship between technology and the productivity of labour. According to the Intel Corps CEO Craig Barrett, convergence of technology expands opportunities. In the past, the economy of most countries depended on the agricultural and industrial sector. Oulton, N 2010, Long Term Implications of the ICT Revolution: Applying the Lessons of Growth Theory and Growth Accounting, CEP Discussion Paper No. It is clearly an incentive for growth for the industry if the market has more talented and skilled ICT people who have the understanding and deeper knowledge of ICT; this can help the industry to . See discussions, stats, and author profiles for this publication at: Hitt LM, Frei FX, & Harker PT,1999, How financial firms decide on technology, In Brookings Papers on Financial Services, ed. We'll assume you're ok with this, but you can opt-out if you wish. ICT contributed $3 bn to the GDP of the Qatar government in the year 2008. The new infrastructure through a synergistic convergence enhanced the computer power, increased connectivity and introduced upgraded computer software. Without ICT, this growth . The decision-making entity publishes the tenders on their websites. The government is planning for the NAC to be a Smart City, and is investing heavily in the new citys telecommunications and ICT infrastructure. ICT can help to develop children's dispositions to learn by increasing self- esteem and confidence, or by supporting independence and persistence in the face of initial difficulties. A National Center for ICT Services Quality Control and Monitoring was established to govern cell phone services and protect users. Retrieved from https://ivypanda.com/essays/ict-and-economic-growth/. This study explores the ways and means behind evolving ICT infrastructure's direct or indirect effect on economic growth within a conceptual framework. According to the 2015 Kenya Economic Survey, the ICT sector in Kenya was worth Sh138 billion in 2014. Includes a market overview and trade data. Standards Australia 2001, Knowledge Management: A Framework for Succeeding in the Knowledge Economy, Standards Australia, Sydney. GDP, ICT GIM, ICTGEXP, and indicate the GDP growth (annual percent), ICT goods imports (percent of total goods imports), ICT goods exports (percent of total goods exports) and fixed broadband subscriptions (per 100 people) respective There are five primary components to this study. Accept Read More, Global Information and Communications Technology, Connect-World website terms and conditions, Information and Communications Technology and Telecom Links, The cloud conversation has changed. Since 2000, Kenya's economy has grown at an average of 3.7 per cent. Dirk Pilat. This will maximise the regions returns on investment by creating large employment demands that can be filled by the very citizens they aim to serve. The results of these studies were summarized in Solows (1987, p. 36) broadly repeated line: the computers were all over the place except in the figures gauging productivity.
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