SPREAD OF ICT AND ECONOMIC GROWTH IN PACIFIC ISLAND COUNTRIES: A PANEL STUDY

Abstract

This paper investigates the impact of information and communications technology(ICT) on economic growth in Pacific Island countries by employing an augmentedproduction function model and panel data analysis from 2002 to 2017. The empiricalfindings reveal that ICT-related indicators have a positive and significant impact on theeconomic growth process, along with the fundamental variable of capital stock. Theeffect of control variables such as foreign direct investment and exports have a positiveeffect on the real gross domestic product per capita, whereas inflation has a negativeeffect. The sensitivity evaluation of ICT indicators with different control variablesproduces consistent evidence of ICT’s effect on economic growth. Policymakersas well as ICT stakeholders should enhance investments for improving ICT-relatedinfrastructure and promoting technology to boost economic growth in Pacific Islandcountries.