The Literature Review

What is the title and what does the title tell you about the paper? Who is the paper written by and do they seem credible to you?

Since the main aim of the research topic is to tell about the use of Information and Communication Technology in the economic growth and benefits of ICT. The most trustworthy finding related to the research topic would be the study conducted by Maryam Farhadi, and some other studies mentioned in the paper, which are totally reasonable. It is officially available online and discussion about the economic growth benefits.
According to Maryam Farhadi Information and communication Technology is the major part of economy now-a-days. All the organisations are using computers and Internet connections for their economic purposes like improving product quality, providing customers best service and selling their goods and services. ICT’s influence is increasing day by day in both the developed and developing countries. Information and communication Technology use indicators portray. ICT is known as the key factor of economic growth in all organisations mostly in industrial society, also this is the current symbol of technological revolution. The substantial growth in mobile cellular subscription is noticeable. ICT defines the concept that include computers and other information equipment that covers computers, computer software, communication equipment etc. Investment on Information and communication Technology includes the investment on the computer and telecomm -unication including hardware, software requirement and services.

Does it have a helpful abstract? Give reasons for your answer.

In this paper helpful abstract is given by the author. In the paper author defines the relationship between ICT use and GDP growth rate per person in 159 countries is examined. But still the study on the impaction of ICT use in economic growth is an unexplored operation. Author used the ICT investment components such as computer hardware, software and labor as input to verify the economic growth to see the effect of information and communication technology but they were not able to find any evidence of a positive relationship before the mid of 1990s. Other people, Jorgenson and Stiroh show the evidence of contribution of Information Technology in economic growth of the United State.

Other studies, most of them are reviewed by Pohjola, indicate that use of ICT is the most important factors in economic growth of US in 1990s.They also provide the evidence of economic growth boosts in Finland from 0.3% to 0.7% in the year 1990 because of ICT. After a great success of ICT in developed countries, the impact of ICT contribution to economic growth is still scarce in developing countries. All discussion about the ICT use in developing countries came to an end that the developing countries may gain the benefit from the ICT if they switch from the predominant technology to new “ICT-oriented approach”.

What did the author(s) do in their research, what research approach and what method(s) did they use?

All the evidence of ICT impact on economic growth given in the paper are divided into two categories based on the methodology. First studies employing the growth accounting technique, which emphasis the growth in inputs by their share and express the part of information and communication technology to economic growth in percentage point. These studies compare the Jorgenson and Stiroh, Oliner and Sichel for the US; Jalava and Pohjola for Finland. These evidences are at the national level on the other hand there are some other studies at the firm or industry level. The second category of researches that used cross country regression techniques to find ICT impact on economic growth. Madden and Savage used 27 Central and Eastern European country’s samples which showed the positive impact of ICT. Many more studies since 1990s showed the positive impact Of ICT on economic growth even some studies said that there is a casual link among broadband Infrastructure as a driving factor of ICT. Now ICT is known as a driving engine of economic growth. However, the empirical results of earlier studies are somewhat weak, and some depends on data period specifications. The effective impact of ICT as a production input on economic growth is positive. Positive results gave very credible evidence about the impact of Information and communication Technology use in economic growth. Different studies clearly displayed that how ICT helped in the growth of economy in various countries all over the worlds.

Do you think the method(s) they used to be appropriate to the question they were asking? Explain why or why not.

Taken review on all the methods that authors used to measure the Economic growth using ICT, I think they are strongly appropriate to the questions they were asking. Because they also used mathematical approach to find the answer for their questions. They find some issues in their results, but economist suggest the use of instrumental variables. As GMM method firstly used by Holtz-Eakin looks to be appropriate for the solution of mathematical equations, which addressed the problem of autocorrelation of the leftover things. This paper calculates the ICT use index by applying the Principal Component Analysis.

What results does the paper report?

This paper reported the result based on GMM-dynamic panel date. Result in this paper confirms the relationship between the GDP per person and information and communication technology use index. Author reported the result that if the more country use the ICT then economic growth will be greater.  ICT’s coefficient uses positive index. If the use index of ICT coefficient is 0.17%, then it indicates that if a country enhances the ICT index by 1%, the economic growth will increase 0.17%. The information given by the ITU and other international organizations shows an increasing trend of ICT use indicators in most of these countries, it defines that these countries identifying the importance of ICT on their economic growth. They also demonstrate the hypothesis of this paper that ICT use has a powerful growth generating effect. The indication of the first trail of ICT use index and GDP per person coefficient are positive and well significant that implies the positive effect of these variables on economic growth. Moreover, the second, third and fourth trail of ICT and GDP are negative and mostly insignificant.

Was the paper worth reading? Give reasons for your answer.

This paper is worth reading. Because as I read about the technology, its importance that how technology is enhancing the economic growth now-a-days in developed and in developing countries also. After reading this paper I find that Information and communication technology changed the face of economy in various countries all over the world. Economic growth increased with the help of ICT. This paper has many evidence to show proof of the result which describes the role of information and communication technology in economic growth of any country. Even the author suggests the idea for the developing countries to improve their economy by using ICT. Author shows the methods, mathematical equations to measure the economic growth of the countries which are using information and communication technology to improve their economic growth. Author show some of the estimated results in the form of table in the paper to give their results proof. Some data examples are introduced in the paper to tell how the economic growth improved in recent years with the help of ICT methods. Reading this paper is pretty worth for me as I stated that it is showing many evidence of results in the form of tables, data, statistics, figures and methods to measure the economic growth of the countries which are taking help of information and communication Technology.

Do you believe the results/findings or the paper? Give reasons for your answer.

I believe in the findings/results, in the paper. I personally believe that the results provided by the author in the paper and the data related to the Information and communication Technology is somehow correct. I believe in the paper because of the different studies described in the paper to calculate the economic growth by ICT use index. These studies are showing different statistics to display the difference in economic growth in previous years. They provided the big difference in between yearly time Economic growth and the growth which is increased after using information and communication technology.

What did you learn from reading the paper?

I learnt from this paper that if we want to develop our economic growth fast, we must use some good technologies like ICT. In this paper I learnt that in the development of countries economy there is a big role of ICT since past years. ICT is the big factor of developed countries in the field of economic growth using some useful methods like GMM and by applying some good principals such as PCA. The main point I remember that we can easily solve some problems by applying some mathematical equations.

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