DO INFORMATION AND COMMUNICATION TECHNOLOGIES FOSTER ECONOMIC GROWTH IN INDONESIA?

Authors

Badri Narayan Rath, Indian institute of technology Hyderabad, IndiaFollow
Danny Hermawan, Bank Indonesia, IndonesiaFollow

Document Type

Article

Abstract

This paper investigates, using annual data from 1980 to 2014, whether adoption of information and communication technologies (ICT) fosters economic growth in Indonesia. We employ an Autoregressive Distributed Lag cointegration technique on an augmented neoclassical growth model. The empirical results indicate a positive effect of ICT development on economic growth in both the long-run and short-run. The other regressors, such as total factor productivity, human capital, and capital per worker, also positively affect economic growth. From a policy perspective, the Indonesian government should promote ICT development through greater investment.

Recommended Citation

Rath, Badri Narayan and Hermawan, Danny (2019) "DO INFORMATION AND COMMUNICATION TECHNOLOGIES FOSTER ECONOMIC GROWTH IN INDONESIA?," Bulletin of Monetary Economics and Banking: Vol. 22: No. 1, Article 2.
DOI: https://doi.org/10.21098/bemp.v22i1.1041
Available at: https://bulletin.bmeb-bi.org/bmeb/vol22/iss1/2

First Page

103

Last Page

122

Creative Commons License

This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License

Country

India

Affiliation

Indian institute of technology Hyderabad