Information and Communications Technology Effects on East Asian Productivity

This study empirically assesses the effect of information and communications technology (ICT) on productivity of ASEAN5 (Malaysia, Indonesia, Philippines, Singapore and Thailand) plus 3 (China, Japan and South Korea). Analytical interpretations in this article have successfully corrected the defects of the predecessor study through a statistical estimation by way of arriving at the coefficients of the explanatory variables being used by econometric approach. A second step in a routine procedure has effectively plugged the parameters of the variables into a modified model in order to calculate the growth rates of productivity indicators being used by growth accounting. The examination envisages a key finding that on the productivity growth of the aforesaid ASEAN5, China has been 'input-driven' while, on the other hand, Japan and Republic of Korea productivity growths have been shown as 'productivity-driven', as reflected from the comparison among the results of total factor productivity growth. The study also exposes a fact that the impact of ICT has been positive in the countries under considerations.