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How does China’s information and communications technology infrastructure investment promote economic growth?

Kerry Liu (University of Sydney, Sydney, Australia)

Indian Growth and Development Review

ISSN: 1753-8254

Article publication date: 6 May 2021

Issue publication date: 15 June 2021

244

Abstract

Purpose

This study aims to analyse the effects of China’s information and communications technology (ICT) infrastructure investment on economic growth.

Design/methodology/approach

Using a panel data set of China’s 30 regions during 2010–2015, this study uses the generalized method of moments (GMM) methods.

Findings

This study finds that compared with “old-type” infrastructure investment such as transport infrastructure and utility infrastructure, there is a time lag but greater effect from ICT infrastructure investment on growth and this relation is non-linear. Also, the human capital factor plays an enhancing role.

Originality/value

This study is the first of its kind that examines the relationship between ICT infrastructure investment and growth in China.

Keywords

Acknowledgements

The author would like to thank his father for the wonderful help, Professor Chowdhury (Editor-in-Chief of the Indian Growth and Development Review journal), and two anonymous referees for very timely, critical and valuable comments on an earlier version of this paper. All errors are the author’s sole responsibility.

Declaration: This research did not receive any specific grant from funding agencies in the public, commercial or not-for-profit sectors.

No conflict of interest.

Citation

Liu, K. (2021), "How does China’s information and communications technology infrastructure investment promote economic growth?", Indian Growth and Development Review, Vol. 14 No. 2, pp. 268-280. https://doi.org/10.1108/IGDR-09-2020-0142

Publisher

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Emerald Publishing Limited

Copyright © 2021, Emerald Publishing Limited

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