Measuring The Impact Of Networked Readiness Index (NRI) On Economic Growth InSelected Developed & Developing Countries

اقتصاد و توسعه منطقه ای

Article 4, Volume 22, Issue 9, December 2015, Pages 131-160   

Document Type: مقالات پژوهشی

DOI: 10.22067/erd.v22i9.40333

Authors

sadegh bafandeh imandoust^{* 1}; ali mofidy²

¹PPayame Poor university

²payame noor

Abstract

Undobtedly, the Information and Communication Technology (ICT) has affected the country’s economic and social interactions. The Networked Readiness Index (NRI) comprising four subindexes that measure the enviroment for ICT’s, the readiness of a society to use ICT’s, the actual usage of all main stakholders (Individual, Business and Government), and finally, the impacts that ICT’s generate in the economy and in the society, the three first subindexes can be regarded as the driver that establish the conditions for the results of the fourth subindexes, ICT impacts. These four subindexes are divided into 10 pillars composed of 54 individual indicators in total. Therefore, in this paper, the effect of Networked Readiness Index (NRI) on economic growth has been studied. To this end, panel data of 77 countries collected in the period 2007 to 2012, and the model is estimated by Generalized Method of Moments(GMM). The model estmation results show that the NRI score has positive and significant effects on GDP per capita growth in developed countries and this amount is equal 0.202848. This effect is positive and non significantin developing countries.

Keywords

Networked Readiness Index; Information and Communication Technology; Hyperconnect; Growth Convergence Equation; Generalized Method of Moments

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