Impact of economic development indicators, information and communication technology on economic growth in Iran with ARDL approach

Abstract

Investigation the indicators such as economic development and sustainable growth and human development and information and communication technology (ICT) and ITIL indicators has an important role in economic development. This article examines the impact of economic development indicators on Iran's economic growth in the period 1370-1390 using the ARDL approach. We use autoregressive distributed lag approach to estimate the cointegration relationship and short term dynamics. In this model the coefficient of error correction term equal -0.70 which that is found to be negative and statistically significant suggesting a rapidly adjustment of error correction factor that reflects the increasing rate is adjusted. The results of estimating the pattern of growth with an emphasis on purchasing power parity, stable income, per capita income, human development and information and communication technology in Iran using the ARDL models show that  ICT and ITIL indicators has a significant effect on economic growth. We find that the coefficient of ICT, equal 0.12 which shows that a unit of increase in ICT, lead to 0.12 percent increase in economic growth. Impact of other variables such as stable income on economic growth equal to 3.87 and purchasing power parity index coefficient equal to 2.28 and the impact of per capita income on economic growth equal to 4.48.

Keywords: information and communication technology, economic growth, ARDL model, error correction model.

JEL Classification: C22, E23, O40, O30