Saeed Moshiri; Maryam Parsa; Liela Darougar
Abstract
As a general-purpose technology, information and communication technology (ICT) leads to increasing productivity and economic growth in different sectors. Iran, as a semi-industrialized developing economy, has recently made relatively high level of investment on ICT in different sectors of the economy. ...
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As a general-purpose technology, information and communication technology (ICT) leads to increasing productivity and economic growth in different sectors. Iran, as a semi-industrialized developing economy, has recently made relatively high level of investment on ICT in different sectors of the economy. In this paper, we investigate the relationship between ICT sector and other sectors of the economy using an input-output table. We construct an input-output table with 37 sectors including ICT sector, using the updated IO table for year 2010. ICT goods production comprises 1.8 percent of total goods production and ICT service is 1.32 percent of the total service production. The results show that one unit increase in final demand for information technology (IT) products will increase total output by 1.63 units and one unit increase in final demand for communication technology (CT) products will increase total output by 2.18 units. The greatest impact of ICT in manufacturing sectors will be respectively in food and beverage, basic metal, and chemical products, and in the services sector in the wholesale, retail sale, financial intermediates, and real estate services. We also calculate the Average Propagation Length (APL) of the changes in the ICT final demand. The results indicate that the average propagation length of the changes in the ICT final demand is 1 for the services sector and 2 for the manufacturing industries.
Karim Emami
Abstract
Estimations and calculations show that the ICT market in Iran was around 320 billion IRRs in 2015, which is about 2.6% of gross domestic production (GPD). at the end of the sixth plan for social and economic development of Iran, it has been set that this amount should be increased to be more ...
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Estimations and calculations show that the ICT market in Iran was around 320 billion IRRs in 2015, which is about 2.6% of gross domestic production (GPD). at the end of the sixth plan for social and economic development of Iran, it has been set that this amount should be increased to be more than 5% of GDP and to be about 1000 billion IRRs. The present study will answer the following two questions. 1- Is increasing the share of ICT sector in GDP necessary? 2- How much does the economic growth change with one percentage increase in share of ICT sector in GDP? To answer these two questions, contribution of ICT sector on economic growth in Iran is first calculated through two methods of actual and potential contribution and then compared with each other. The results show that average GDP growth in Iran is about 3.8% for the period of 1990-2015 and, based on growth accounting, the potential contribution of ICT on economic growth is about half a percent. Actual contribution of ICT sector on growth has been higher than the potential share, except for years 1990 to 1992. Therefore, increasing value added of ICT sector increases GDP more than the increase of the value added of ICT sector, which is due to knowledge, market and network spillovers. Accordingly, increasing share of ICT sector in GDP is necessary during the sixth plan for economic development in Iran. Moreover, one percent increase in share of ICT sector in GDP increases economic growth at a rate of 0.93 percent.
