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Foreign direct investment, information and communication technology, trade, and economic growth in the South Asian Association for Regional Cooperation countries: An empirical insight
Author(s) -
Bhujabal Padmaja,
Sethi Narayan
Publication year - 2020
Publication title -
journal of public affairs
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.221
H-Index - 20
eISSN - 1479-1854
pISSN - 1472-3891
DOI - 10.1002/pa.2010
Subject(s) - foreign direct investment , economics , distributed lag , globalization , granger causality , information and communications technology , gross domestic product , per capita , international trade , ordinary least squares , international economics , openness to experience , panel data , macroeconomics , econometrics , political science , psychology , social psychology , population , demography , sociology , law , market economy
Information and communication technology (ICT) is one of the key sectors promoting economic growth in the present modern era of globalization. It promotes technological advances in global communications as well as production techniques and contributes to economic growth and development. Most of the economic activities, including international trade and foreign direct investment (FDI), are largely dependent on various modern sources of ICT. The objective of this study is to examine the dynamic relationship between FDI, ICT, trade, and per capita gross domestic product growth across the South Asian Association for Regional Cooperation (SAARC) developing nations from 2000 to 2017. We have used different panel estimates such as fully modified ordinary least squares, dynamic ordinary least squares, Fisher–Johansen cointegration test, panel autoregressive distributed lag, and Dumitrescu–Hurlin causality. We found existence of unidirectional causality from FDI to ICT and bidirectional causal relationship between trade and ICT. The outcome of our study suggests policy recommendations for improving the standards of ICT, specifically focusing on economic growth, trade openness, and facilitation of foreign investment in the SAARC countries.