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

Studies on the impact of the information and communication technologies (ICT) sector on economic growth are the basis for the increased knowledge accumulation in the literature. Findings through knowledge accumulation process at the basis of these studies generally suggests that ICT effects economic growth positively. In addition to this, the effect levels of the ICT variable on the dependent variable are different. This difference has been observed for not only among the different countries but also for different time periods of the same countries. The expanded version of the Solow growth model was used in this study. In doing so, the capital variable is divided into two components: ICT capital and non-ICT capital. As a ICT capital indicator ICT products import value, that has not been used before at the studies on Turkey, was used in this study. The relationship between variables was examined using the ARDL boundary test method for the periods 2000Q1-2016Q2. According to the long term forecast results; ICT capital, non-ICT capital and labor have a positive impact on Turkey's economic growth. The short-term forecasts indicate that only non-ICT capital affects growth positively. These results support the theoretical assumption that information and communication technologies are a strategic element in achieving sustainable economic growth and development.