ICT and Economic Growth

Running Head: ECONOMIC GROWTH AND ICT 0
ICT and Economic Growth
(Student Details:)
11/28/2018

Economic Growth and ICT 1
ICT and Economic Growth
The Essay is identifying and analysing the role of information and communication
technologies (herein after referred as ICT) in economic growth of emerging, developing and
developed countries. Besides, we will also see the effect of ICT in the economy of Kuwait,
and evaluate whether the advances from ICT technology differ among emerging, developing
and developed countries or not. As we know that productivity growth is basic need for
improvements in the overall standard of living and funding in ICT is seen as a chief motorist
of productivity growth (Breznitz & Murphree, 2011). The relationship between productivity
growth and ICT has been widely studied among major developed countries at various levels
and the results of research are depicting the positive effect of ICT on productivity is huge as
well as economically significant. The contributions of ICT investment to the world
economies clearly stating that ICTs have great assurance in reducing poverty, increasing
productivity, and boosting overall economic growth of the country. On the other hand, the
valid reasons behind, the impact of ICT on economic growth among developing as well as
emerging countries differs from developed countries. Hence, we will see how this effect of
ICT on economic growth differs in emerging and developed countries in this discussion.
Kuwaiti officials underlined the importance of encouraging the role of ICT in fortifying
economic growth as well as inspiring vital industries of the country (Oxford Business Group,
2017). In a recent report presented by Kuwait News Agency, the bureaucrats reported that
investment in the ICT industry produces positive economic and social effects on nation’s
labour as well as society (Geronimo, 2017).
Moreover emerging nations might be requiring more absorptive capacities because of
less correct level of human capital as well as research and expenditures. This is the reason
behind less gain they get than developed countries through investment in ICTs. In Kuwait,
digital renovation is a government priority because country is emerging at very fast pace due
to recent ICT technologies in all areas of forming an economy (Ismail, 2008). This
digitisation will further bring electrifying opportunities and new challenges, to all sectors as
well as ICT will form new impulse for the sustainable growth and improved efficiency. There
are so many areas of Kuwait economy like public safety, oil and gas, banking, education and
government are feeling the complete effects of ICTs (Farhadi, Ismail, & Fooladi, 2012). In
order to be well connected as well as smart, all countries must endure harnessing the
authority of emerging technologies. ICTs are the best drivers for boosting entrepreneurial