Information economics; the relationship between information-communications technology and economic growth

The aim of this study is to find out how and to what extend the theoretical interaction between information economy & ICT and economic performance comes true in practice. The study begins with theoretical knowledge on information, information economy, and ICT. After presenting a theoretical literature review and summaries from related studies, the study continues by involving information economy indicators regarding the OECD countries. In the empirical part of the study the correlation between information economy & ICT and economic growth in 20 OECD countries is analysed by panel data method for the 1990–2014 period. As a result of the analysis, it was found that no causation between R&D activities representing information economy and economic growth.Under normal circumstances the probability of causation between R&D and economic growth is high, however the reason behind not getting expected results might be because of the low GDP share allocated for R&D by some of the developing countries included to the sample. A causation is found between another information indicator advanced technology product export, ICT indicators and economic growth.The results obtained from findings; that countries complete the required infrastructure investments to transform into an information economy and implement policies in line with this objective will affect their economic performances positively.