Purpose
This study examines the causal relationship between information communication technology (ICT) and economic growth in high-income and middle-income Asian countries.
Design/methodology/approach
This study utilises a high-quality data from 25 Asian countries from 2000 to 2018. This study presents the robustness results by employing panel cointegration and estimation procedures to account for the endogeneity and cross-sectional dependence issues.
Findings
The results illustrate that high-income Asian countries have achieved positive and significant economic development from high Internet penetration. Additionally, the middle-income countries have started to benefit from ICT Internet. The findings show that the telephone line and mobile phone penetration is highly capable of promoting economic growth in middle-income Asian countries.
Practical implications
In high-income Asia countries, an appropriate ICT infrastructure policy will support feasible ICT penetration, which may drive the processes of economic development and innovation that contribute to economic growth. Moreover, in middle-income Asian countries, the establishment of better-quality ICT service and infrastructure is more critical. Policymakers should accommodate sufficient support to establish the ICT infrastructure and expand ICT penetration.
Originality/value
This study reveals that high-income Asian countries have been more proactive and effective than middle-income countries in embracing ICT to foster economic growth. Examining the case of high-income and middle-income Asian countries provides comprehensive insight for policymakers regarding the relevance of ICT in boosting economic growth through the advantages of technology expansion.
Keywords
ICT, Economic growth, Asia, Panel data, Communication technologies
2025, Journal of Asian Business and Economic Studies
More
Abstract
Purpose
This study estimates the impact of growth transmitted from a near economic center (NEC) to neighboring countries in boosting the growth of Asian countries.
Design/methodology/approach
This study constructs the NEC of a country and combines it with the Penn World Tables database. The study estimates the impact of NEC on the economic growth of Asian countries over the period 1950–2019. The study also identifies the factors that boost the delivery of neighboring effects.
Findings
Estimation results show that a country’s output growth increases by about 0.14% when NEC’s output growth increases by 1%.
Practical implications
This study suggests that Asian growth benefited from a developed country that transmits economic prosperity to neighboring countries.
Social implications
This study suggests that a country should have a good economic relationship with neighboring countries to boost economic growth.
Originality/value
This study contributes to the existing literature as follows: First, this is the first study that investigated spatial externality in growth between neighboring countries in Asia. Secondly, this study empirically tests the flying geese model in Asian growth. Thirdly, the study investigates the factors that facilitate growth spillover between countries.
