Effect of ICT on TFP Growth in Selected Developing Countries

The aim of this paper is to evaluate the effect of ICT spillover on the Total Factor Productivity (TFP) growth in selected developing countries using panel data approach over the period 1996-2006. Results of this study indicate that the economic growth is the biggest contributor to TFP growth in these countries. In addition, both domestic investment and ICT spillover effects have positive and statistically significant impact on the TFP. Moreover, findings represent that the effect of human capital on the TFP is positive but is statistically insignificant. Furthermore, domestic investment in ICT and human capital capability are vital to observe and diffuse the spillover effect of developed counties investments in ICT. The effect of human capital on the TFP is ambiguous because of a probable error of measurement.