Nexus between energy consumption, information and communications technology, and economic growth: An enquiry into emerging Asian countries

• Published date: 01 May 2021
• Author: Gagan Deep Sharma,Mohammad Mafizur Rahman,Mansi Jain,Ritika Chopra
• Date: 01 May 2021
• DOI: http://doi.org/10.1002/pa.2172

ACADEMIC PAPER

Nexus between energy consumption, information and

communications technology, and economic growth: An enquiry

into emerging Asian countries

Gagan Deep Sharma

1

| Mohammad Mafizur Rahman

2

| Mansi Jain

1

|

Ritika Chopra

1

1

University School of Management Studies,

Guru Gobind Singh Indraprastha University,

Dwarka, India

2

School of Commerce, University of Southern

Queensland, Toowoomba, Australia

Correspondence

Gagan Deep Sharma, University School of

Management Studies, Guru Gobind Singh

Indraprastha University, Sector–16C, Dwarka,

New Delhi 110078, India.

Email: angrishgagan@gmail.com

The development of every economic sector is significantly affected by information

and communication technology (ICT), especially during the liberalization process.

Though several studies have focused on economy–environment–financial develop-

ment nexus, yet very limited literature has highlighted the impact of ICT on the rela-

tionship between economic growth, energy consumption, and financial development.

We address this gap in the existing literature by investigating the nexus between ICT,

energy consumption, and economic growth for a panel of 10 emerging and develop-

ing Asian countries selected on the bases of the highest current gross domestic prod-

uct price (in US dollars), for a span of 17 years ranging from 2000 to 2017. Unlike the

previous studies, this study employs the advanced econometric techniques that are

robust to heterogeneities across nations and have proven to produce more reliable

and efficient results. Our findings opine a bidirectional causality between ICT, energy

consumption, and economic growth. Additionally, internet and mobile cellular sub-

scriptions have a positive impact on economic growth, while energy consumption

report negative impact, and the results for medium and high technological export

reveals an insignificant impact on the economic growth of the 10 countries under

study. Overall, the results are consistent for all the countries analyzed in this empiri-

cal study. The study provides valuable policy lessons to adopt ICT-enabled technolo-

gies that will bring innovative changes and further lead to increased economic

growth. It is recommended that the government must promote green ICT technology

and enhance the technological industry that shall lead to higher productivity and sus-

tainable development.

1|INTRODUCTION

The advancement in information and communication technology (ICT)

has led to many structural changes suchas reorganizing of economics,

trade extension, and globalization, giving rise to the capital flows and

enhanced information availability. Development of every economic

sector is significantly affected by ICT, especially during the liberaliza-

tion process and even the growth economists' forecast that economic

growth is driven by investments in ICT(Sassi & Goaied, 2013). A large

number of firms and consumers utilize computers for accessing the

internet or using a certain software application for economic purposes

that include providinga wide range of diversified and customized prod-

ucts to the consumers with improvised product quality and selling

diversified goods and services. In fact, ICT means combiningelectron-

ics, software, networks, telecommunications, integrating information

media, and decentralizing computer work stations, all of which drives

firms, industries,and the country as a whole. It includes different “com-

munication equipment”suchas television, radio, and multiple software.

Received: 30 March 2020 Revised: 22 April 2020 Accepted: 29 April 2020

DOI: 10.1002/pa.2172

J Public Affairs. 2021;21:e2172. wileyonlinelibrary.com/journal/pa © 2020 John Wiley & Sons, Ltd 1of13

https://doi.org/10.1002/pa.2172