Determinants of information and communication technology (ICT) adoption in developing countries

Zaheer uddin Farooqi; Muhammad Rizwan Yaseen; Sofia Anwar; Muhammad Sohail Amjad Makhdum

doi:10.17485/IJST/v13i39.797

Article

Determinants of information and communication technology (ICT) adoption in developing countries

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Indian Journal of Science and Technology

DOI: 10.17485/IJST/v13i39.797

Year: 2020, Volume: 13, Issue: 39, Pages: 4116-4126

Original Article

Determinants of information and communication technology (ICT) adoption in developing countries

Zaheer uddin Farooqi¹, Muhammad Rizwan Yaseen², Sofia Anwar³, Muhammad Sohail Amjad Makhdum^2*

¹PhD Scholar, Department of Economics, Government College University Faisalabad, Pakistan
²Assistant Professor, Department of Economics, Government College University Faisalabad, Pakistan
³Professor, Department of Economics, Government College University Faisalabad, Pakistan

*Corresponding Author
Email: [email protected]

Received Date:01 June 2020, Accepted Date:09 August 2020, Published Date:07 November 2020

This work is licensed under a Creative Commons Attribution 4.0 International License.

Abstract

Background/Objective: The adoption of Information and communication technology (ICT) in developing countries is increasing during last two decades. This study explores the determinants of ICT adoption in 67 selected developing countries. Methods/Statistical analysis: Panel data was collected from World Bank and International telecommunication websites for the period of 2000 to 2018. This study explores the impact of access to electricity, ICT good imports, financial development index, GDP per capita, urban population, control of corruption and government effectiveness on ICT adoption. Selected developing countries are divided into four panels such as low income, lower middle, upper middle and high income countries. Pesaran CSD, Friedman CSD and Frees CSD tests are used to check the presence of cross-sectional dependency in the panel data. The results confirmed the presence of crosssectional dependency in the variables and hence CIPS second generation unit root test is used for stationarity. Kao test is used to check the long run cointegration among the variables. FMOLS is used for regression analysis. Findings: The regression results show the mixed findings in different panels. The results indicate that access to electricity is an important determinant of ICT adoption in low and lower middle income developing countries. ICT imports and Government effectiveness are among the significant determinants of ICT adoption in low, upper middle and high income developing countries. GDP per capita is an important variable for each panel. Urban population is found to enhance ICT adoption in lower middle and high income developing countries. It is recommended that Government should focus on these important determinants to increase the ICT adoption in selected developing countries. Novelty/Application: ICT development index is used as a dependent variable instead of components of ICT such as internet, mobile phone and computer penetration. New econometrics techniques and variables are used in analysis.

Keywords: ICT adoption; developing countries; influencing factors; hardware; software; panel data

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© 2020 Farooqi et al.This is an open-access article distributed under the terms of the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original author and source are credited. Published By Indian Society for Education and Environment (iSee).