Makun, Keshmeer and Devi, Swastika (2019) The effect of information and communication technology on economic output: an empirical study of the Republic of Fiji Islands. International Journal of Development Issues, 18 (2). pp. 229-242. ISSN 1446-8956
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Purpose – Information and communication technology (ICT) appears to play an indispensable task in influencing and directing the growth process of several developing countries. The spread of ICT in the South Pacific region including Fiji has facilitated faster and smother business in different sectors of the economy such
as banking, education, transport and tourism. The purpose of this paper is to contribute to empirical literature
and explore the effect of ICT on economic output, both in the short run and long run in the Fiji Islands.
Design/methodology/approach – The economic analysis was conducted using data from 1990 to 2016, improved framework of Solow (1956) and the autoregressive distributed-lag bounds approach to cointegration. Findings from the study and economic standpoint, the ICT is indeed important. The analysis shows an indication of long-run cointegration relationship among the variables for the two indicators of ICT. From the analysis, it is also observed that the two ICT indicators have a statistically significant and positive effect on output with coefficient ranging from 0.04 to 0.06.
Research limitations/implications – These results extend the ICT literature by providing support for
it in case of a small developing island economy. The study highlights that while the two proxies of ICT are
important for long term output growth, besides broad money and capital stock, the principal technology
contributor is a mobile cellular subscription in Fiji Islands.
Practical implications – The policymakers need to work diligently to not only enhance ICT related
infrastructure but also focus on better services and communication in different sectors of the economy. The
efficient use of present technologies such as 3-G and 4-G is crucial and must be connected and made available
to other smaller islands of Fiji.
Originality/value – The recent study has focused on the contribution of ICT on small island developing
country, relative to large developing or developed countries. Furthermore, the author examined the
contribution of two indicators of ICT using Solow (1956) augmented framework.
| Item Type: | Journal Article |
|---|---|
| Subjects: | H Social Sciences > HD Industries. Land use. Labor T Technology > T Technology (General) |
| Divisions: | Faculty of Business and Economics (FBE) > School of Economics |
| Depositing User: | Keshmeer Makun |
| Date Deposited: | 09 Sep 2020 22:56 |
| Last Modified: | 09 Sep 2020 22:56 |
| URI: | https://repository.usp.ac.fj/id/eprint/12336 |
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