Department of Economics and Finance

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Subject: search.filters.subject.SAARC economies

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    Does ICT diffusion make human development sustainable in the era of globalization? An empirical analysis from SAARC economies
    (Europe PMC, 2022-04) Giri, Arun Kumar; Debata, Byomakesh
    This 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’s CSD tests, second-generation unit root test, Pedroni, Kao, Westerlund cointegration tests, FMOLS, DCCE-MG, Driscoll-Kraay (DK) regression, and DH causality test. The findings of the cointegration tests demonstrate that the variables are cointegrated and have long run equilibrium relationship. The results from DCCE-MG and DK regression, 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 challenges for 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. JEL code: C23, O15, 033, O40
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    Environmental effects of ICT diffusion, energy consumption, financial development, and globalization: panel evidence from SAARC economies
    (Springer, 2022-12) Giri, Arun Kumar
    The rising energy demand for information and communication technology (ICT) devices has piqued the interest of scholars and policymakers. Given that ICT devices are ubiquitous, any attempt to mitigate climate change should address the carbon footprint of the ICT sector. The present study examines the direct impact of ICT on the environment and the indirect impact through interaction with energy consumption, financial development, and globalization in SAARC economies from 2000 to 2020. Using econometric approaches robust to cross-sectional dependence, such as the Driscoll-Kraay estimator and the Dumitrescu-Hurlin causality test, the study found that ICT, renewable energy consumption, and globalization significantly reduce CO2 emission, whereas non-renewable energy consumption and financial development significantly increase emission. However, the interaction between financial development and ICT jointly reduces CO2 emissions. Similarly, renewable energy and globalization reduce emissions from increased ICT usage. The study also confirms the validity of the environmental Kuznets curve hypothesis for ICT diffusion. The causality test indicates bidirectional causality between ICT and CO2 emissions. Results suggest that SAARC economies can safely boost ICT and related applications to minimize emissions. They should also use renewable energy and green innovations in telecommunications to reduce their adverse environmental repercussions.