Relationship between ICT penetration rate and socio-economic variables in the Asian countries: a dynamic panel data approach
Rapport, 2012
Despite the slow socio-economic development
(namely health and education), the ICT sectors have
grown remarkably in Asian region thanks to a massive
penetration rate of ICT devices (particularly cellular
and internet) in the last couple of decades. This
phenomenon raises the question on how much have
ICT development contributed to the society.
Addressing this issue, the study aims at relating two
variables of socio-economic indicators included in the
calculation of the Human Development Index (HDI):
educational attainment and health, whereas the
variables of the Internet subscriber and telephony are
representing the development of ICT sectors. The
study covers roughly 35 selected Asian countries that
represent all the sub-regions in Asia based on the
World Bank and International Telecommunication
Union (ITU)’s database, and the figures range in time
from 1983 to 2005. The study first identifies the unit
root test and then builds cointegration between the
non-stationer series. As there are many gaps in the
data, the Maddala-Wu (1999) estimation is
implemented while the Westerlund (2007)
cointegration test is applied to further examine the
long run trend. The results are quite surprising in that
ICT sectors represented by internet and telephony have
no statistical evidence of cointegration with socioeconomic variables.
panel cointegration
Socio-economics variable