The moderating role of ICT diffusion between financial development and economic growth: a bootstrap ARDL approach in Saudi Arabia

Grahyaia, Zouhaier; Abid, Mehdi; Sekrafi, Habib; Abdelli, Hanene

doi:10.1080/02681102.2021.1998759

Cited by 9 publications

(5 citation statements)

References 84 publications

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“…Finally, this study further reveals that there is a threshold constraint on the productivity-enhancing effect of rural broadband development on farm-related loans and that there are significant differences in the productivity effects and constraints on different farm-related loan allocations. This is similar to the role of IT diffusion on economic growth (Gheraia et al, 2021). Increasing the total supply of agricultural credit cannot guarantee that production operators increase their real investments and improve their operations when facing various uncertainty risks.…”

Section: Discussionmentioning

confidence: 91%

“…ICTs can contribute directly to economic growth and can also increase the indirect effects of financial development on economic growth after a certain level of development (Gheraia et al, 2021). In terms of the economic growth effect of agriculture-related loans, although credit support can promote the adoption of higher productivity technologies, the increase in investment efficiency or profitability is also influenced by other factors (Hossain et al, 2018).…”

Section: LImentioning

confidence: 99%

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How does the development of rural broadband in China affect agricultural total factor productivity? Evidence from agriculture-related loans

2024

Front. Sustain. Food Syst.

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IntroductionThe construction of digital villages is widely acknowledged as a way to achieve the “dual goals” of high quality of the agricultural and rural economy and common prosperity under the digital China strategy. Studies have explored the socio-economic benefits of different aspects of rural digitization, but few have focused on the productivity role of rural broadband development in the context of the urban-rural broadband divide. The purpose of this paper is to explore the relationship between rural broadband development and agricultural total factor productivity (TFP) and the intrinsic mechanism of action, and to provide empirical evidence on the productivity effect of promoting digital transformation in rural agriculture.MethodsUsing panel data from 31 provinces in China from 2011 to 2020, this paper investigates the impact and mechanism of rural broadband development on agricultural TFP from the perspective of agriculture-related loans by setting up a two-way fixed effects model, a mechanism effects model and a threshold effects model.ResultsThe results find that rural broadband development has a significant role in enhancing agricultural TFP. Heterogeneity analysis indicates that the productivity-enhancing effect of rural broadband development is remarkable only in the central region and the region with higher rural disposable income. Mechanism analysis points out that rural broadband development can increase agricultural TFP by influencing the share of farm-related loans. Threshold analysis further reveals that the role of increasing the share of farm-related loans on agricultural TFP is marked only after rural broadband development reaches a certain level.DiscussionThese findings can provide practical guidance for other developing countries in accelerating the digital transformation of villages and optimizing factor allocation to achieve high-quality agricultural development.

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Section: Discussionmentioning

confidence: 91%

Section: LImentioning

confidence: 99%

How does the development of rural broadband in China affect agricultural total factor productivity? Evidence from agriculture-related loans

2024

Front. Sustain. Food Syst.

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“…Only an increase in mobile phones could increase EG in middle- and low-income economies; an increase in the Internet or secure Internet servers was ineffective. Grahyaia et al (2021) examined the role of ICT diffusion on EG and financial development in Saudi Arabia using the bootstrap ARDL approach and employing annual data from 1990 to 2019. The study reported ICT’s positive impact on EG; however, its outcome remains unreliable as it used only 29 years of data.…”

Section: Literature Reviewmentioning

confidence: 99%

“…From the literature review, it also appears that studies regarding the ICT-growth nexus in Saudi Arabia are missing. Although Grahyaia et al (2021) made an effort, there is a valid reason to doubt their findings, as they used an insufficient sample size. As a result, we aim to investigate the effect of ICT on Saudi Arabia’s EG using a NARDL bounds approach using recent data of 32 years.…”

Section: Literature Reviewmentioning

confidence: 99%

“…The studies cited above mainly considered different ICT proxies/indicators, namely fixed telephone, mobile phone, internet users, broadband connections, ICT goods exports, ICT capital, and secure Internet servers, to assess their individual effects on EG. For example, Shahiduzzaman and Alam (2014) and Niebel (2018) used ICT capital, Latif et al (2018) utilized an ICT composite index comprising five proxies, while Remeikiene et al (2021) and Kurniawati (2022) used three proxies, Bahrini and Qaffas (2019), Grahyaia et al (2021) and Cheng et al (2021) used four different proxies, and Kumar et al (2016) used five proxies, all of them used those proxies separately and investigated their distinct impact of EG.…”

Section: Literature Reviewmentioning

confidence: 99%

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ICT and Economic Growth Nexus in Saudi Arabia, Controlling Human Capital in the COVID-19 Era: A NARDL Exercise

Islam,

Rehman,

Khan

et al. 2024

Sage Open

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ICT use has significantly increased over the years across the world, including Saudi Arabia. This study links ICT with economic growth (EG) in Saudi Arabia, controlling human capital (HC) and COVID-19. We employ time-series annual data from 1990 to 2021, a nonlinear Autoregressive Distributed Lag (NARDL) approach, and a cointegrating regression analysis to look at the asymmetric effects of ICT diffusion on EG. The NARDL assessment establishes a cointegrating relationship among variables; the effect of ICT negative shocks on EG is favorable and relatively larger. In contrast, the positive shocks of ICT generate a negative and somewhat less impact on EG with an overall positive impact. The findings imply that the ICT, during its expansion stage, cannot contribute positively to EG, perhaps because of a lack of required skilled human capital to administer and utilize the ICT instruments. The positive and insignificant coefficient of HC supports this conclusion. Despite Saudi Arabia’s generous efforts, physical and human capital have no significant impact on EG. COVID-19 has hindered the usual economic activities in the Kingdom and impaired EG. The cointegrating regressions authenticate the robustness of the NARDL findings. The outcomes suggest policymakers should appraise the existing ICT infrastructure and initiate raising the capability of HC through practical training and education to benefit from ICT diffusion and positively impact EG.

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Realizing direct and indirect impact of environmental regulations on pollution: A path analysis approach to explore the mediating role of green innovation in G7 economies

Nazir

Gillani

Shafiq

2023

Environ Sci Pollut Res

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The moderating role of ICT diffusion between financial development and economic growth: a bootstrap ARDL approach in Saudi Arabia

Cited by 9 publications

References 84 publications

How does the development of rural broadband in China affect agricultural total factor productivity? Evidence from agriculture-related loans

How does the development of rural broadband in China affect agricultural total factor productivity? Evidence from agriculture-related loans

ICT and Economic Growth Nexus in Saudi Arabia, Controlling Human Capital in the COVID-19 Era: A NARDL Exercise

Realizing direct and indirect impact of environmental regulations on pollution: A path analysis approach to explore the mediating role of green innovation in G7 economies

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