Impact of ICT Investment and Diffusion on Economic Growth: A Case Study of Pakistan

Abstract

Technological advancements are crucial to the growth of any economy's potential. This, however , is not a straightforward undertaking. Economic growth has historically been accelerated or slowed depending on whether new technology is transferred, developed, or fails to achieve its full potential. It is particularly true that information and communications technology (ICT) impacts the production processes of businesses, which in turn has an effect on the overall production processes of businesses themselves. Because of this, empirical inquiry is necessary to confirm the existence of such a link. Instead of measuring ICT investments directly, the imports and exports of information and communications technology (ICT) are used to measure ICT spread. Internet and mobile cellular subscriptions are used as proxy for ICT diffusion. The results demonstrate that the diffusion of information and communications technologies has a major and positive impact on economic development. However, when it comes to the impact of ICT investments on economic development in Pakistan, there has been a slew of contradictory findings. In other words, exports have a positive impact on the economy, but imports have a negative impact on it. All factors have a substantial influence on the growth of the economy.