ICT Adoption and Its Effects on the Economic Growth of Bangladesh: A Time Series Analysis

Abstract

Understanding information and communication technology (ICT) adoption’s particular effects on a nation like Bangladesh is critical because ICT adoption continues to play a significant role in promoting economic progress globally. By analysing the relationships between ICT use and economic growth in Bangladesh, this study examines data from 2002 through 2021 using a time series analysis. ICT export, gross capital formation, mobile cellular subscriptions, government budget allocation, and foreign direct investment are just a few of the independent variables the study takes into account in relation to ICT adoption. These factors were selected based on their applicability to the adoption of ICT and their potential impact on economic expansion. According to the results of the time series research, the ICT sector’s growing exports have a favourable and considerable impact on long-term economic growth. Mobile cellular subscriptions negatively affect economic growth, with significant short-term impact and insignificant long-term effect. The influence of the government budget is detrimental but insignificant for both long-term and short-term economic growth. The study comes to the conclusion that Bangladesh’s economic development is significantly benefited by the adoption of ICT. The study also highlights the significance of government assistance through budgetary allocation and strategies that draw in foreign direct investment. The results can direct the development of policies and evidence-based decision-making to use ICT adoption as an accelerator for sustained economic development in Bangladesh.