ICT and Economic Growth: New Evidence from Some Developed Countries

There have been significant advances in the field of information and communication technology (ICT) in recent decades. ICT plays a major role in innovation, raising productivity and increasing economic growth and therefore affects all economic sectors. The purpose of this paper is to estimate the impact of ICT on economic growth in developed countries. To do so, we have used a sample of 30 developed countries for which the necessary data were available for the period 20012006. We concentrated on the usage aspect of ICT to deal with its impact on economic growth. We have also used a new composite index of ICT called Digital Opportunity Index (DOI) covering 3 dimensions including overall opportunity, infrastructure and applications. Our findings based on a panel data regression models indicate that in general significance and positive relationship between ICT and economic growth exists in the countries under consideration. Therefore the expansion of ICT programs in these countries is suggested.