What is ICT Penetration

In the last few decades, there has been a surge of interest in the effects of information and communication technologies (ICTs) on economic growth. Although ICT diffusion affects economic growth in many ways, the magnitude of ICT penetration is not time-invariant and depends on many factors. Using pooled mean group (PMG) panel ARDL model, this study aims to explore the nexus between ICT penetration and economic growth for BRICS nations over 2003-2020. The findings show that, in the short run, fixed broadband and mobile cellular subscriptions have a positive effect on economic growth, while both R&D expenditure and ICT goods import have a negative insignificant effect. In the long run, however, the effect of both R&D expenditure and ICT goods import turns out to be significantly positive, whereas fixed broadband and mobile cellular subscriptions have a negative effect on economic growth. The results have significant implications for policymakers and practitioners who are willing to harness ICTs to improve the economic and social conditions that would lead to higher economic growth.