How does China’s information and communications technology infrastructure investment promote economic growth?

Abstract

Purpose This study aims to analyse the effects of China’s information and communications technology (ICT) infrastructure investment on economic growth. Design/methodology/approach Using a panel data set of China’s 30 regions during 2010–2015, this study uses the generalized method of moments (GMM) methods. Findings This study finds that compared with “old-type” infrastructure investment such as transport infrastructure and utility infrastructure, there is a time lag but greater effect from ICT infrastructure investment on growth and this relation is non-linear. Also, the human capital factor plays an enhancing role. Originality/value This study is the first of its kind that examines the relationship between ICT infrastructure investment and growth in China.