Contribution of ICT to the economic growth of China

• The view of the systematic irrationality of investors and investment managers in reference to investment in information and communication technology (ICT) despite ICT’s apparent lack of effect on productivity growth is called the productivity paradox. Research suggests that ICT investment return is significant and positive in developed nations but not in developing nations. This chapter challenges the above conclusion by examining the contribution of ICT to the economic growth of China. We investigate the relationship between total factor productivity (HP) growth and ICT capital and provide estimation of the returns on ICT investment. The contribution of ICT to economic growth has not yet been studied for developing countries like China. The empirical results suggest that China has reaped the benefits of ICT investment. The policy implications for Chinese ICT investment and development are also discussed. The results add to our understanding of how ICT affects growth in the context of economic development.

Ämnesord

SAMHÄLLSVETENSKAP  -- Ekonomi och näringsliv -- Nationalekonomi (hsv//swe)

SOCIAL SCIENCES  -- Economics and Business -- Economics (hsv//eng)

Nyckelord

Productivity paradox; ICT; economic development; TFP growth; China

Publikations- och innehållstyp

ref (ämneskategori)

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