How Much Has Information and Communication Technology Contributed to the Economic Growth of Iran?

In recent decades, different studies have increasingly emphasized the role of productivity improvement in economic growth, especially in developing countries including Iran. In this context, information and communication technology (ICT) is considered as one of the main factors which influences productivity and efficiency. From the supply-side point of view, international experiences in economic growth imply that ICT deployment plays a significant role in value-added creation, especially in economic sub-sectors which are more ICT-intensive. Therefore, the present study aimed to evaluate the ICT impact on economic growth in Iran in a quantitative framework by using provincial data. In addition, parametric and non-parametric approaches (i.e., panel data and data envelopment analysis techniques) were applied to understand the average effect of ICT on economic growth (known as ICT productivity), as well as the relative status of provinces in terms of ICT contribution to economic growth (known as economic efficiency). The results of the estimations indicated that ICT could positively contribute to the economic growth and the relative economic efficiency of provinces in valueadded creation. Finally, the efficiencies of provinces collapsed significantly upon omitting ICT from the basic model.