The Impact of ICT onTotal Factor Productivity in Selected Countries of The World

Subject Areas : Financial Economics

Ahmad Jafarisamimi ¹ , Alireza daghighiasli ² , Mah shad Arab ³

1 - Professor Economics Mazandaran university
2 - Assistan Professor Azad univesity tehran markaz
3 - M.A Student

Received: 2015-06-10 Accepted : 2015-06-10 Published : 2009-12-22

Keywords: Panel Data Approach, Human Capital, Information&Communication Technology(ICT), Overflow ICT, Total Factor Productivity (TFP),

Abstract :

In recent years, Information and Communications Technology has the greatest impact on different aspects of human's life including effect of this technology on all economic sectors. In particular, ICT has increased Total Factor Productivity in many countries of the world especially developed countries from the second half of the 0991s. ICT capital has characteristics of knowledge commodity. Hence, it is able both through capital deepening and by its overflowing effect to affect productivity. This paper investigates ICT impact on TFP using Panel Data Method for the sample of selected developing and developed countries within the time period 3112-3112. Results of this study indicate that ICT internal investment and ICT external capital or the very ICT overflow, both, have positive and significant effect on TFP both in the sample of all the selected developing countries and in the sample of developed countries. In addition, effect of human capital on TFP in both samples of developed countries and selected developing countries was found positive.