[go: up one dir, main page]
IDEAS home Printed from https://ideas.repec.org/a/eme/jespps/v34y2007i4p352-370.html
   My bibliography  Save this article

The ICT environment, financial sector and economic growth: a cross‐country analysis

Author

Listed:
  • Farkhanda Shamim
Abstract
Purpose - The purpose of this paper is to test the hypothesis that, given the financial development of an economy (whether developed or not), e‐finance technologies enhance economic growth because they lower processing costs for suppliers and information costs for consumers and therefore increase availability of finance for even low‐income borrowers of remote areas. Design/methodology/approach - To analyze the indirect relationship between the level of connectivity and economic growth via its impact on financial development, generalized method of moments (GMM) is applied to cross section data of 61 countries averaged over 13 years (1990‐2002). Findings - In all the regression results, it is found that better connectivity particularly by increasing the number of mobile phone subscribers and the number of internet users significantly enhances financial depth, which is a backbone of any country to grow. Practical implications - Based on the empirical findings of current study, it can be concluded that Claessenset al.might be right in saying that for developing countries to exploit opportunities for leapfrogging even with weak financial system, it is important to invest in the sector of information and communication technology. Originality/value - the current study is the first of its kind, which provides empirical and global evidence that the component of financial sector developed by better telecommunication infrastructure is positively associated with long run economic growth and gross capital formation.

Suggested Citation

  • Farkhanda Shamim, 2007. "The ICT environment, financial sector and economic growth: a cross‐country analysis," Journal of Economic Studies, Emerald Group Publishing Limited, vol. 34(4), pages 352-370, September.
    • Handle: RePEc:eme:jespps:v:34:y:2007:i:4:p:352-370
    DOI: 10.1108/01443580710817452
    as

    Download full text from publisher

    File URL: https://www.emerald.com/insight/content/doi/10.1108/01443580710817452/full/html?utm_source=repec&utm_medium=feed&utm_campaign=repec
    Download Restriction: Access to full text is restricted to subscribers
    File URL: https://www.emerald.com/insight/content/doi/10.1108/01443580710817452/full/pdf?utm_source=repec&utm_medium=feed&utm_campaign=repec
    Download Restriction: Access to full text is restricted to subscribers
    File URL: https://libkey.io/10.1108/01443580710817452?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eme:jespps:v:34:y:2007:i:4:p:352-370. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Emerald Support (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.