In recent years, progress in information and communication technology (ICT) has caused many structural changes such as\r\nreorganizing of economics, globalization, and trade extension, which leads to capital flows and enhancing information\r\navailability. Moreover, ICT plays a significant role in development of each economic sector, especially during liberalization\r\nprocess. Growth economists predict that economic growth is driven by investments in ICT. However, empirical studies on\r\nthis issue have produced mixed results, regarding to different research methodology and geographical configuration of the\r\nstudy. This paper examines the impact of Information and Communication Technology (ICT) use on economic growth using\r\nthe Generalized Method of Moments (GMM) estimator within the framework of a dynamic panel data approach and applies\r\nit to 159 countries over the period 2000 to 2009. The results indicate that there is a positive relationship between growth\r\nrate of real GDP per capita and ICT use index (as measured by the number of internet users, fixed broadband internet\r\nsubscribers and the number of mobile subscription per 100 inhabitants). We also find that the effect of ICT use on economic\r\ngrowth is higher in high income group rather than other groups. This implies that if these countries seek to enhance their\r\neconomic growth, they need to implement specific policies that facilitate ICT use.
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