Do Foreign Direct Investment FDI and Trade Openness Explain the Disparity in ICT Diffusion between Asia-Pacific and the Islamic Middle Eastern Countries?

Authors:
Farid Shirazi;Roya Gholami;Dolores Añón Higón
Affiliations:
Ryerson University, Canada;Aston Business School, UK;University of Valencia, Spain
Venue:
Journal of Global Information Management
Year:
2010

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Abstract

This study investigates the impact of FDI and trade openness on ICT diffusion in the Asia-Pacific and Middle East regions from 1996-2005. The results indicate that while dissimilarities exist between the economies included in this study in terms of their level of socio-economic and political development, education and the growth of GDP have had a positive impact on ICT diffusion in both regions. However, while FDI has generally had a positive and significant impact on ICT diffusion in Asia-Pacific economies, its impact on Middle Eastern economies has been detrimental. The results of this study also show that trade-openness has had, in general, a positive and significant impact on ICT diffusion.