The Effect of ICT on the Production Per Capita of Each Worker in Iran's Provinces: Generalized method of moments

Document Type : Original Article

Authors

1 PhD student in Economics, Department of Economics and Management, Urmia University

2 Member of the academic staff of the Department of Economics, Mazandaran University

3 Graduated Economic science from Mazandaran University (Babolsar)

Abstract

The development of the telecommunication industry as a factor in the development of ICT can bring benefits such as earning currency through the export of services, creating employment, and increasing productivity. Governments introduce the telecommunication industry as an important industry in economic growth. Every country seeks to increase the average production of its workforce to increase production and economic growth. In other words, a workforce is an important tool for the progress and development of the country. Therefore, investing in ICT has a positive and significant effect on the productivity of labor and employment and economic growth. Since the issue of production in Iran is of particular importance, therefore, investment in information and communication technology has a positive and significant effect on labor productivity and employment, and economic growth. Therefore, focusing as much as possible on the development of information and communication technology in the more deprived and less developed provinces can have more useful results in the performance of macroeconomic variables, including increasing the per capita production of labor. Therefore, the main goal of this research is to investigate the impact of ICT on the per capita production of each worker in the provinces of Iran using the generalized dynamic moment (GMM) technique and also the modified ordinary least squares (FMOLS) method. from 2006 to 2019. The results of the research show that with a one percent increase in the number of mobile internet users, and mobile phone subscribers, the per capita production of workers in the short-term and long-term has increased by 0.27 and 0.12 percent, respectively, while with an increase of one percent of fixed internet subscribers decreases the per capita worker production in the short-term and long-term by 0.23 and 0.19 respectively in the provinces of Iran. Therefore, the policy result of the current research is that ICT in the field of data and voice with mobility capability increases the per capita production of each worker in the provinces of the country.

Keywords

References

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Volume 4, Issue 2 - Serial Number 2
Summer 2023
March 2021
Pages 61-70

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