Exploring the Nexus Between ICT, Remittances and Economic Growth: A Study of Vietnam

In this article, we explore the nexus between information and communications technology (ICT), remittances and output per worker in Vietnam from 1980 to 2012. Within the augmented Solow framework, we deploy the autoregressive distributed lag bounds procedure and Granger causality tests to examine th...

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Bibliographic Details
Published in:Journal of Southeast Asian economies 2014-04, Vol.31 (1), p.104-120
Main Authors: Kumar, Ronald Ravinesh, Vu, Hang Thi Thu
Format: Article
Language:English
Subjects:
Capital
Capital per worker
Causality
Developing countries
Economic development
Economic growth
Economics
Emigrant remittances
Gross domestic product
Information and communication technologies
Information technology
Internet
Long run economic growth
Productivity
Remittances
Statistical significance
Vector-autoregressive models
Vietnam
Workers
World Bank
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Summary:In this article, we explore the nexus between information and communications technology (ICT), remittances and output per worker in Vietnam from 1980 to 2012. Within the augmented Solow framework, we deploy the autoregressive distributed lag bounds procedure and Granger causality tests to examine the short-run and long-run effects and the direction of causality, respectively. The results show that ICT has a momentous short-run (0.002 per cent) and long-run (0.006 per cent) effect on per worker output. However, in the long run, the elasticity coefficient of remittances is positive but not significant within the 1-10 per cent level of significance, and the short-run results show mixed effects. The causality result indicates bidirectional causation between remittances and output per worker, duly emphasizing their mutually reinforcing effect and a unidirectional causation from capital per worker and ICT to remittances, respectively.
ISSN:2339-5095
2339-5206
DOI:10.1355/ae31-1g