Effects of information communication technologies on economic growth, environmental quality, and labor productivity
The first objective of this study is to investigate the impact of ICTs on economic growth, which is dependent on the intelligence threshold level for the 128 countries in 2019. ICTs are key driver of economic growth, and several studies have been conducted with varying perspectives on ICTs. Most...
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| Format: | Thesis |
| Language: | English |
| Published: |
2022
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| Subjects: | |
| Online Access: | http://psasir.upm.edu.my/id/eprint/114020/1/114020.pdf |
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| Summary: | The first objective of this study is to investigate the impact of ICTs on economic growth,
which is dependent on the intelligence threshold level for the 128 countries in 2019.
ICTs are key driver of economic growth, and several studies have been conducted with
varying perspectives on ICTs. Most research has been conducted on the relationship
between ICTs and economic growth. However, research on the relationship between
ICTs and intelligence-based economic growth is limited. Specialists in operating,
investing, and expanding technology are required to use ICT infrastructure effectively.
Employees with a high level of intelligence will ensure that ICT adoption runs smoothly
and significantly increase productivity over workers with a low level of intelligence.
This study investigates the role of intelligence in moderating the impact of ICTs on
economic growth. The threshold regression model provides a more consistent and
accurate indication of the intelligence threshold value, which can be used to show how
intelligence influences the ICTs and economic growth nexus in both below and abovethreshold
regimes. Hansen's (2000) threshold regression estimation reveals that ICTs
stimulate economic growth when intelligence is below a certain threshold level but not
above the threshold value. To improve economic growth, developing-country
policymakers should prioritize human capital development through skill-based training,
particularly in the digitalization era.
The second objective of this study is to examine the ICTs threshold effect on economic
growth and environmental quality nexus. Environmental quality has long been regarded
as a critical factor in long-term growth and advancement in many countries. The CO2
emissions rate in developing countries increased to 63 percent in recent years due to
industrialization procedures and significant energy-intensive technologies for national
development and progress. According to the United Nation (2015), ICTs help to
promote economic growth and address environmental challenges. Therefore, this study
employs dynamic panel threshold regression by Seo et al. (2019) to examine the
threshold effect of ICTs on economic growth and environmental quality for 69
developing countries from 2000 to 2019. The empirical results indicate that the ICTs
variable is a statistically significant determinant of economic growth and environmental
quality. Economic growth improves the environmental quality when the ICTs variable
is below the threshold value. When the usage of ICTs exceeds the threshold value,
economic growth degrades the environmental quality in developing countries. Thus,
ICTs use in these countries to modernize, automate, and digitalize production processes
requires close monitoring and legitimate concern from policymakers to ensure that ICTs
usage is optimal and not excessive. Excessive ICTs use degrades environmental quality
in developing countries.
The third objective of this study is to evaluate the impacts of ICTs on labor productivity
in 84 developing countries from 2000 to 2019, using the dynamic panel system
generalized method of moments (GMM) and dynamic panel quantile regression
estimations. According to ITU (2020), ICTs play a pivotal role in boosting productivity
and employment in developing countries, thereby achieving one of the 2030 Agenda's
priorities and a component of Sustainable Development Goal 8. This notion is supported
by the rapid growth of the youth population in developing countries, as they are active
ICTs user and will shape the future labor market. The empirical findings provide new
evidence on the moderating effect of ICTs on human capital, financial development, and
trade openness in influencing labor productivity in developing countries. ICTs have a
positive and statistically significant moderating effect on labor productivity in
developing countries through ICTs' interaction with the above three variables.
Comparatively, the outcome from dynamic panel quantile regression reveals that ICTs
improve labor productivity in the lower and middle quartiles than in the upper quantiles
of developing countries. This study can help policymakers develop a long-term strategy
for ICTs adoption and usage in developing countries to achieve industrial 4.0 goals. |
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