Experimental Study of the effects of ICT Developmental Policies on Iran's Economic Growth

Document Type : Research/Original/Regular Article

Authors

1 Assistant Professor, Department of Economics, Faculty of Economics and Social Sciences, Bu-Ali Sina University, Hamedan, Iran.

2 MA in Economics, Faculty of Economics and Social Sciences, Bu-Ali Sina University, Hamedan, Iran.

Abstract

ICT is one of the essential tools for expanding economic activity and accelerating economic growth. In this study, using a FAVAR model with time-varying parameters (TVP-FAVAR), the effects and determinants of GDP per capita, with emphasis on the variables of ICT is investigated.. Accordingly, using data from 1986 to 2016 the effects of shocks on ICT index, trade openness, the ratio of Government expenditures to GDP, the formation of gross fixed capital, and active labor force, on Iran's per capita GDP is investigated. Based on the results, the effects of information and communication technology on per capita GDP is significantly positive, the results also indicate that investment has positive effects; Active labor force and trade openness also have positive effects on GDP per capita. The results represent a coincidence in the non-linear effects of model variables on GDP per capita, so that in some periods such as 1990 to 1994, when the positive effects of shock on the formation of gross fixed capital expenditure is decreasing, there are a reduction in the positive effects of trade openness; accordingly, the results point to the necessity of using nonlinear models to study the effects and determinants of GDP per capita.

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References

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Quarterly Journal of The Macro and Strategic Policies
Volume 8, Issue 32 - Serial Number 32
February 2021
Pages 692-715

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