ICT and Income Inequality in Iran

The main objective of this paper is to examine causality between ICT indicators and income inequality in Iran during the period 1994-2013. In other words, does the information and communication technologies, increasing income inequality in Iran or vice versa, income inequality is causality the availability of information and communication technology? And is there a feedback between them? To analyze, we use annual time series including unit root test and two Methods casual bounds test approaches based on unrestricted error correction model (UECM) (Pesaran et al. (2001)) as well as Toda and Yamamoto's Granger non-causality test (1995). Findings show a one-way causality from income inequality to all ICT indicators. This means that income inequality in the country will lead to the expansion of the digital divide.