Information and Communication Technology (ICT), Income Inequality and Economic Growth in ASEAN-5 Countries

• Main Author: Huong, Amy Yong Jing
• Format: Thesis
• Language: English
• Published: Universiti Malaysia Sarawak (UNIMAS) 2020
• Subjects: HB Economic Theory; HV Social pathology. Social and public welfare
• Online Access: http://ir.unimas.my/id/eprint/32151/1/Amy.pdf; http://ir.unimas.my/id/eprint/32151/

Digitalization transformation spread worldwide across borders, in this vein, globalization develops or transforms the economic growth and development. Information and Communication Technology (ICT) is basically about how modern information and communication technologies affect society and in what way it does. ICT expands will increase the economic growth in the country. Income inequality in ASEAN-5 countries is relatively high. Generally, income inequality widens income gap, gender matter and even personal matters. ICT development plays an important role to create more job opportunity and increase the economic growth of a country and act as a major contributor to poverty alleviation. ICT has received comparatively little attention in the current globalisation wave. This presents a significant gap, considering the importance of ICT-centred policy proposals in economic growth. Therefore, this study aims to examine the relationship between ICT and income inequality in ASEAN-5 countries over the study periods of 2003 to 2018. This study employs Pooled Ordinary Least Squares (POLS), Fully Modified Ordinary Least Squares (FMOLS) and Dynamic Ordinary Least Squares (DOLS) models. The results showed that ICT have significant impact on income inequality. The largest effect of fixed broadband and telephone subscriptions among ICT variables suggests that promoting Internet diffusion and Internet expansion is important to fight poverty and reduce income inequality especially in rural areas. Policies like ICT training programmes, free universal Internet access and digital subsidy can be implemented to confront with this issue. Therefore, income inequality can be reduced.