Research On The Role Of Information And Communication Technology Development In Economic Growth In Madagasca

This study aimed at investigating the role of ICT in its relationship to economic growth in an underdeveloped country.Madagascar a country in Africa has been taken a case study in the fulfillment of this research.The research has been guided by two objectives,the first objective was to assess the relationship between ICT and economic development in Madagascar and second objective was examining the benefits of ICT in Madagascar as it is cased as poor country.The current study,by estimating frontier model,uncovered the influence of technical inefficiency on business performance.The analysis use World Integrated Trade Solution data from World Bank where extensive ICT and non-ICT indicators are provided.The ICT utilization indicators have mixed results in influencing competence score.But,in general,ICT utilization reduces technical inefficiency thereby improving business performance and hence economic growth for underdeveloped country like Madagascar the competence score.Furthermore,Vector Error Correction Model(VECM)was utilized taking the period 1975–2019 into consideration.Cointegration tests indicate that the variables are found to be of I(1)and cointegrated.Further,vector error-correction model(VECM)indicates that when the Short-term fluctuations deviate from the long-term equilibrium,the current changes of Madagascar Economic growth could eliminate 17.78% non-equilibrium error of the last period,putting back the situation to the equilibrium state through a reverse adjustment.Impulse response analysis intuitively portrays the destabilized changes of the variables in response to some external shocks.However,the impact of Madagascar Economic growth shock on ICT seems to be rather marginal.Moreover,Granger causality results reveal that there is a bidirectional Granger causal relationship between Madagascar economic growth and ICT.From a policy perspective,our results indicate that to ensure a sustainable development-Madagascar have to open more doors for investment in technology adoption.In fact,it is worth also to be taken seriously the into main transmission channels of ICTs,namely,human capital,institutional quality and domestic investment.Policy makers have to ensure that mobile phones,fixed telephones and internet are within easy reach of consumers as well as businesses.At the same time,issues within the main transmission channels have to be addressed to optimize economic growth.