Course Hero Logo

111.docx - Introduction The significance of Information and...

Course Hero uses AI to attempt to automatically extract content from documents to surface to you and others so you can study better, e.g., in search results, to enrich docs, and more. This preview shows page 1 - 2 out of 6 pages.

IntroductionThe significance of Information and Communication technologies (ICTs) has gathered muchattention by influencing on the economic as well as social progress of both developing anddeveloped countries since the initiative of ICT and its market in the 1990s. All societiesregardless of their the size economy began to invest enormously on ICT infrastructure to reachsustainable development (Mansell and Wehn, 1998). The development of ICT allows societies totransform information into knowledge and serve as robust driver in permament growth of theeconomy (Conole and Dyke, 2004). Generally, ICT investment includes three fragmentscomputers, softwares and telecommunication devices. In the last decade, the price of ICTcomponents has been stabilized and been affordable for all societies and its members due to theproduction boom in ICT production companies (Jorgenson, 2001). The huge development ofICTs and affordable prices attracted the different types of companies to invest on ICTs toincrease their performance and benefit from ICT opportunities. The development of ICT sectorhas impact on the economy by creating new job opportunities and accelerating the businessprocess together with decreasing business costs. To take an example, the company which offersmobile phone services contributes the economy by providing millions of job opportunities to thepopulation. According to report of International Telecommunication Union (ITU), ICT sectorplays the main role to employ a large share of population in the mobile phone sector in Nigeria.Indirectly, ICT can facilitate the business processes by connecting the consumers and sellers,employees and employers by telecommunication technologies, such as web application systems,LinkedIn which accelerate the recruitment process and save the time. Therefore, the developmentof ICTs facilitates the economic growth by creating externalities to all players of the economy(Zwass, 1996).Because of these contributions of the ICT, the deficiency in this sector is argued to explain thegap between developing and developed economies, as supported by many agencies includingUnited Nations Development Program (UNDP) and World Bank. They classically target toattract the public with the advantages of ICT, build up a budget to invest, accelerate the structureof measures for placing the ICT infrastructures and expansion of ICT applications to furtherfinancial and social areas of the economy. However, this is not an easy problem to solve as itsounds. Providing with funds for developing countries is a challenging task and hugeinvestments is unlikely invested in first run due to the fact that there are opposite argumentsabout the returns from ICT infrastructure investment in developing countries. The previousliteratures argue the relationship between economic growth and ICT. As a result, most of thestudies found a supportive effect of ICT on economic growth. Although a number of authors

Upload your study docs or become a

Course Hero member to access this document

Upload your study docs or become a

Course Hero member to access this document

End of preview. Want to read all 6 pages?

Upload your study docs or become a

Course Hero member to access this document

Term
Spring
Professor
NoProfessor
Tags
Economics, Economic Development, Test, Developed country, Random effects model

Newly uploaded documents

Show More

Newly uploaded documents

Show More

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture