The contribution of ICT investment to labor productivity and economic growth in the Philippines 1992-2001
Date
2004-10
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Abstract
Various studies have shown that there is a positive impact of information and communication technologies (ICT) on economic growth and productivity in a number of developed countries in the 1990s. There are however no major studies which would estimate the contribution of ICT to growth and productivity in developing countries in Southeast Asia. Availability, consistency, and trustworthiness of data have been so far the major setback.
The paper makes an attempt, using linear regression analysis, at estimating the contribution of investment in ICT to labor productivity and output growth in the Philippines. Based on the regression results, ICT has a positive and significant relationship with the level of economic development of the Philippines. The findings in this study suggest that ICT does affect output growth and labor productivity. Alongside the presence of ICT, a good share of educated members of the labor force will help improve the productivity accounting. These people are better equipped and matched to the new technologies that the digitalized global economy could offer.
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Keywords
ICT, Economic Growth, ICT investment, Technological investment, Technological infrastructure, Technological innovation