Effects of information and communication technologies on economic growth: The case of Turkey

Sustainable economic growth is considered among the most basic economic goals of the countries. The knowledge economy constitutes the last stage of development and change that societies have undergone to meet their demands and needs from the moment they began to live on earth. In this context, Information and Communication Technologies (ICT), known as an important component of the knowledge economy, is today accepted as an important determinant of economic growth. The usage of these technologies leads to an increase in productivity rates and a decrease in cost rates in countries, and as a result, it accelerates economic growth through an increase in productivity by creating positive externalities. From this point of view, this study focuses on ICT, which has become increasingly important in recent years, and aims to empirically examine the relationship between ICT and the economic growth. For this purpose, in this study, the relationship between ICT and economic growth in Turkey is analyzed econometrically using time series methodology. In the study, econometric models defined based on the Cobb Douglas total production function are analyzed within the scope of time series analysis and for the period 1990-2020 to examine the effects of ICT on economic growth in Turkey. As a result of the analysis, it has been determined that ICT has a positive and statistically significant effect on economic growth in Turkey during the review period. The aforementioned empirical findings obtained in the study reveal that the realization of the necessary infrastructure investments by the state in order to increase the use of ICT and the encouragement of the private sector to invest in the aforementioned area are quite necessary for a sustainable economic growth performance in Turkey. Keywords: Information and Communication Technologies, Economic Growth, Turkey