The Effects of Information and Communication Technology (ICT) Use on Human Development—A Macroeconomic Approach

Abstract

Information and communication technology (ICT) is considered a significant factor in economic growth and development. Over the past two decades, scholars have studied the impact of ICT on economic growth, but there has been little research that has addressed the impact of ICT on human development, which is considered one of the fundamental factors of economic development. This could be especially important from the perspective of developing countries, which can develop faster through the implementation of ICT. Thus, the aim of this paper is to investigate the effects of ICT use on human development, distinguishing effects among high, upper-middle, lower-middle and low-income countries following the World Bank classification 2020. Our sample includes 130 countries in the period from 2007 to 2019. The empirical analysis is based on dynamic panel data regression analysis. We use Generalized Method of Moments (GMM) as an estimator, i.e., two-step system GMM. The results primarily support the dynamic behaviour of human development. The results of the analysis also show that ICT has highly significant positive effects on human development in lower-middle-income and low-income countries, while the effects do not appear to be significant in high- and middle-income countries. This research serves as an argument for the need to invest in ICT and its implementation in low-income countries; however, it also suggests that the story is not one-sided and that there are possible negative effects of ICT use on human development. From the perspective of economic policy, the results can be a guideline for the implementation and use of ICT in developing countries, which could lead to economic growth and development and thus better quality of life. On the other hand, policymakers in developed countries cannot rely on ICT alone; they should also consider other technological innovations that could ensure a better quality of life.

Effects of globalization, energy consumption and ICT on health status in Australia: the role of financial development and education

“…Furthermore, Lee and Kim [ 16 ] identified that ICT increases the life expectancy at birth in the 16 Asian countries covering data of 2009–2014 from the fixed effect model. Similar results were also found by Afroz et al [ 39 ] for Malaysia, Aksentijevic [ 17 ] for 130 countries, Alzaid et al [ 40 ] for 156 countries, Kim and Kim [ 41 ] for 178 countries, Hashem [ 42 ] for developing countries. The ICT also reduces different types of mortality rates as found by Nyamawe and Seif [ 43 ] for Tanzania.…”

“…Information and communication technology (ICT) also offers innumerable modern benefits for expanding life expectancy as identified by contemporary researchers (see Majeed and Khan [ 15 ], Lee and Kim [ 16 ], Aksentijevic [ 17 ]. Using two stage least squares and system GMM in cross-sectional and panel data from 1990–2014, Majeed and Khan [ 15 ] observed that ICT positively and significantly increased life expectancy and decreased infant mortality rates in 184 countries.…”

“…Many empirical literary works enable the detection of the essential determinants of public health status (see Rahman and Alam [ 8 ]; Shahbaz et al [ 9 ]; Guzel et al [ 10 ]; Martín Cervantes et al [ 11 ], Majeed et al [ 12 ], Rodriguez-Alvarez [ 13 ], Ibrahim et al [ 14 ], Majeed and Khan [ 15 ], Lee and Kim [ 16 ], Aksentijevic [ 17 ], Ray and Linden [ 18 ], Mondal and Shitan [ 19 ], Alam et al [ 20 ], Wang et al [ 21 ], Rahman et al [ 22 ]). However, their findings are not irrefutable due to the non- adoption of the essential and time demanded catalyst for determining health status.…”

Travel-Business Stagnation and SME Business Turbulence in the Tourism Sector in the Era of the COVID-19 Pandemic

“…This means that governments need to consider the long-term implications of the crisis while leveraging digitization and promoting structural transformation to build a stronger, more sustainable and resilient tourism economy [41]. Thus, optimal efforts and new breakthroughs are needed for economic recovery and business stability through innovation and the use of technology towards increasing business competitiveness in the global-market era [42]. Furthermore, product promotion and marketing through the use of information technology and support of good governance will accelerate the recovery of tourism and SME business activities.…”

Electronic Surveillance in Court Proceedings and in the Execution of Criminal Penalties: Legislative and Logistical Steps Regarding Operationalising the Electronic Monitoring Information System (EMIS) in Romania

“…Whether used for personal use or at home, for making purchases or payments, in education, transportation, in dealing with healthcare or public authorities, or by companies, banks, or other governmental institutions, these web-based devices (Nistor and Zadobrischi 2022;James and Abiola 2021;Lavric et al 2022;Avătămănit , ei et al 2021;Misra et al 2016) could be seen as essential for most people in society. Evidently, the high pace of research and technological advancement has contributed to permanent appearance of new tools and electronic equipment-related to ICT (Information and communications technology), in addition to the upgrading of the already existent devices) (Nguyen and Doytch 2021;Miron et al 2008;Tamaş and Năstase 2008;Isaila 2012;Vîrgolici 2014;Spiezia 2012;Karaman Aksentijević et al 2021;Farhadi et al 2012)-so that the process of extension of such facilities to new human activities (Tofan and Bostan 2022;Alhmiedat and Aborokbah 2021;Yeh 2010Yeh , 2015, some of them being unconceivable until recently, has been in full development.…”