Department of Economics and Finance
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Item Does ICT diffusion reduce poverty? Evidence from SAARC countries(Wiley, 2023-03) Giri, Arun Kumar; Debata, ByomakeshThe present study aims to explore the relationship between ICT diffusion and poverty reduction in SAARC countries using panel data from 2005 to 2020. This study uses econometric techniques robust to cross-sectional dependence (CSD) including Pesaran's CSD tests; second-generation unit root test; Pedroni, Kao, Westerlund cointegration tests; CS-ARDL, Driscoll-Kraay (DK) standard error approach; and D&H causality test. The investigation is based on the ICT diffusion index constructed using principal component analysis (PCA). The study's major finding shows that ICT diffusion reduces poverty both in the long and short run, indicating the favorable impact of ICT on the development process in SAARC countries. Further, economic growth, financial development, and remittances all serve to minimize the poverty level. The causality test reveals bidirectional causation between ICT diffusion and poverty reduction. The study highlights the crucial role of ICT diffusion and selected economic variables in reducing poverty. The findings of the present research shall benefit policymakers to formulate appropriate policies and programs to improve the well-being of people and enhance macroeconomic performance, which impacts both the societal and environmental development of a country.Item ICT Diffusion, Financial Instability, and Shadow Economy: Panel Evidence from SAARC Economies(Springer, 2024-11) Debata, Byomakesh; Giri, Arun KumarThe relevance of digital finance to developing economies has been bolstered by the rapid invention of ICTs in emerging markets. While widespread use of digital finance may increase credit availability, it may also increase the likelihood of systemic risk in the financial system. Furthermore, emerging economies face the challenges of shadow economic growth, which affects taxable income revenue and hinders the chances for financial inclusion. This research investigates how ICT diffusion has affected the shadow economy and financial stability in the SAARC economies, in line with SDG 9 for 2030 by the United Nations. We employed the DCCE and DK standard error estimate methods, which are resistant to CSD, to measure the relationship for 2005–2019 on two model frameworks. The stationarity and cointegration among the variables are verified using the second-generation unit root test and the Westerlund cointegration analysis. The Westerlund test has confirmed cointegration between the dependent and the independent variables. Long-term estimation also suggests that a rise in the spread of ICTs can help slow the expansion of the shadow economy in SAARC nations. Nevertheless, it also heightens the possibility of systemic risks and exacerbates financial instability. Regarding control variables, the study revealed that economic growth and FDI slowed the expansion of the shadow economy, whereas unemployment and inflation sped it up. The research results will shed light on how digital money affects the shadow economy and advances financial inclusion and stability in developing countries.Item Leapfrogging into knowledge economy: Information and communication technology for human development(Australasian Journal of Information Systems, 2022) Giri, Arun Kumar; Debata, ByomakeshModern-day economic growth is focused on productivity and innovation, which puts information and technology integral to economic policy issues. In this context, ICT has a significant position as it increases efficiency, promotes information dissemination, and enhances innovation, resulting in a global shift in social and human development processes. The purpose of this research is to examine the significance of ICT diffusion in fostering human development in the South Asian Association for Regional Cooperation (SAARC) countries from 2005 to 2019. ICT diffusion is measured using a principal component analysis (PCA)- based composite index that combines telephone, mobile, broadband, and internet usage. The United Nations Development Programme (UNDP) created Human Development Index (HDI) serves as a proxy for human development. To adjust for any confounding bias, macroeconomic indicators, such as gross domestic product (GDP), inflation, and trade are also included. Utilizing econometric methods robust to cross-sectional dependence (CSD) such as the dynamic common correlated effect (DCCE) estimator, Driscoll-Kraay (DK) regression, and the Dumitrescu-Hurlin (DH) causality test, the study highlights the strong positive relationship between ICT and HDI. In addition, GDP boosts HDI owing to productivity gains. Similarly, trade expansion, in addition to its direct effects, also influences HDI by boosting economic growth. Inflation, on the other hand, has a negative impact on the HDI. Consequently, the study recommends a cohesive setting that unifies ICT with human development in this modern framework.Item The role of ICT diffusion in sustainable human development: an empirical analysis from SAARC economies(Springer, 2022-09) Giri, Arun Kumar; Debata, ByomakeshThis study intends to examine the impact of ICT diffusion, globalization, financial development, government effectiveness, and economic growth on sustainable human development (SHD) (i.e., the development of human capital adjusted against the human ecological footprint) using 2005–2020 panel data of SAARC economies. The methodology involves econometric techniques robust to cross-sectional dependence (CSD), such as Pesaran CSD tests; second-generation unit root tests; Pedroni, Kao, and Westerlund cointegration tests; FMOLS, DCCE-MG, and Driscoll-Kraay (DK) regressions; and DH causality tests. The findings of the cointegration tests demonstrate that the variables are cointegrated and have a long-run equilibrium relationship. The results from the DCCE-MG and DK regressions indicate that ICT diffusion has a significant favorable impact on SHD. Similarly, globalization and economic growth also have a significant positive impact on SHD. On the other hand, the impact of government effectiveness and financial development was found to be insignificant. In addition, the DH causality test results show the presence of a unidirectional causality running from ICT diffusion to SHD and globalization to SHD. A bidirectional causal link is detected between economic growth and SHD. Therefore, the study concludes that in order to resolve the undesirable consequences of environmental degradation on human development in the globalized era, it is essential for SAARC economies to tackle the challenges of adequate ICT infrastructure: particularly, access and affordability. By eliminating these significant barriers to ICT access, CO2 emissions can be reduced, and human development can be sustained simultaneously.