How much Has ICT Contributed to Iran Economic Growth

In recent decades, an increasing emphasis has been placed on the role of productivity improvement in economic growth, especially in developing countries such as Iran. In this context, one of the main factors influencing the productivity and efficiency is information and communication technology (ICT). International experiences in economic growth, from supply side point of view, imply that ICT deployment has played a significant role in value added creation, especially in economic sub-sectors which are more ICT -intensive. In this paper, we are going to assess the ICT impact on economic growth in Iran in a quantitative framework by using provincial data. In so doing, we apply parametric & non-parametric approaches (Panel Data & DEA techniques) in order to understand the average impact of ICT on economic growth (known as ICT productivity) as well as the relative status of provinces in terms of ICT contribution to economic growth (known as economic efficiency). Results of estimations imply that ICT could positively contribute to the economic growth and the relative economic efficiency of provinces in value added creation. Meanwhile, upon omitting ICT from our basic model, the efficiencies of provinces collapse significantly.