Impact of the Internet on Investment Activity: Evidence from Southeast Asian Countries


Authors

DOI: https://doi.org/10.57110/jebvn.v3i5.182

Keywords:

Đầu tư, Đông Nam Á, Internet

Abstract

This study seeks to assess the influence of the Internet on investment activities in seven Southeast Asian countries over the period from 1996 to 2020. Data for this study were sourced from the World Bank, and various statistical methods, including Pool-OLS, random-effects, fixed-effects, and the Driscoll-Kraay approach, were employed. The research findings indicate a positive correlation between Internet growth and investment activity in selected Southeast Asian countries. Additionally, economic development demonstrates a positive relationship with investment activity. These results underscore the importance of implementing suitable policies in these seven Southeast Asian nations to foster increased investment activity.

References

Abbas, S., Rehman, F.U., Khan, S., Rehman, M.Z., Alonazi, W.B. and Noman, A.A. (2022), “Crowding-Out Effect of Natural Resources on Domestic Investment: The Importance of Information Communication and Technology (ICT) and Control of Corruption in the Middle East and Central Asia”, Sustainability, Vol. 14 No. 20, p. 13392.

Al-Sadiq, M.A.J. (2013), Outward Foreign Direct Investment and Domestic Investment: The Case of Developing Countries, International Monetary Fund.

Awad, I.M., Al-Jerashi, G.K. and Alabaddi, Z.A. (2021), “Determinants of private domestic investment in Palestine: time series analysis”, Journal of Business and Socio-Economic Development, Vol. 1 No. 1, pp. 71–86.

Bartel, A., Ichniowski, C. and Shaw, K. (2007), “How does information technology affect productivity? Plant-level comparisons of product innovation, process improvement, and worker skills”, The Quarterly Journal of Economics, Vol. 122 No. 4, pp. 1721–1758.

Canh, N.P., Schinckus, C., Thanh, S.D. and Ling, F.C.H. (2020), “Effects of the internet, mobile, and land phones on income inequality and The Kuznets curve: Cross country analysis”, Telecommunications Policy, Vol. 44 No. 10, p. 102041.

Chenery, H.B. (1952), “Overcapacity and the acceleration principle”, Econometrica: Journal of the Econometric Society, pp. 1–28.

Chuku, C., Onye, K. and Ajah, H. (2017), “Structural and institutional determinants of investment activity in Africa”, Investment and Competitiveness in Africa, pp. 25–50.

Driscoll, J.C. and Kraay, A.C. (1998), “Consistent Covariance Matrix Estimation with Spatially Dependent Panel Data”, The Review of Economics and Statistics, Vol. 80 No. 4, pp. 549–560.

Dutta, A. (2001), “Telecommunications and economic activity: An analysis of Granger causality”, Journal of Management Information Systems, Vol. 17 No. 4, pp. 71–95.

Edquist, H., Goodridge, P. and Haskel, J. (2021), “The Internet of Things and economic growth in a panel of countries”, Economics of Innovation and New Technology, Vol. 30 No. 3, pp. 262–283.

Fernandes, A.M., Mattoo, A., Nguyen, H. and Schiffbauer, M. (2019), “The internet and Chinese exports in the pre-ali baba era”, Journal of Development Economics, Vol. 138, pp. 57–76.

Haini, H. (2019), “Internet penetration, human capital and economic growth in the ASEAN economies: evidence from a translog production function”, Applied Economics Letters, Vol. 26 No. 21, pp. 1774–1778.

Hair, J.F.J., Anderson, R.E., Tatham, R.L. and Black, W.C. (1995), Multivariate Data Analysis (3rd Ed.), New York: Macmillan.

Kambil, A. and Short, J.E. (1994), “Electronic integration and business network redesign: A roles–linkage perspective”, Journal of Management Information Systems, Vol. 10 No. 4, pp. 59–83.

Koyck, L.M. (1954), Distributed Lags and Investment Analysis (Vol. 4), North-Holland Publishing Company.

Kurniawati, M.A. (2020), “ICT infrastructure, innovation development and economic growth: a comparative evidence between two decades in OECD countries”, International Journal of Social Economics, Vol. 48 No. 1, pp. 141–158.

Latif, Z., Xin, W., Khan, D., Iqbal, K., Pathan, Z.H., Salam, S. and Jan, N. (2017), “ICT and sustainable development in South Asian countries”, Human Systems Management, Vol. 36 No. 4, pp. 353–362.

Lee, S.H. (2017), “Digital democracy in Asia: The impact of the Asian internet on political participation”, Journal of Information Technology & Politics, Vol. 14 No. 1, pp. 62–82.

Lim, J.J. (2014), “Institutional and structural determinants of investment worldwide”, Journal of Macroeconomics, Vol. 41, pp. 160–177.

de Mendonça, H.F. and Brito, Y. (2021), “The link between public debt and investment: an empirical assessment from emerging markets”, Applied Economics, Vol. 53 No. 50, pp. 5864–5876.

Miller, D. (2018), “Blockchain and the internet of things in the industrial sector”, IT Professional, Vol. 20 No. 3, pp. 15–18.

Najarzadeh, R., Rahimzadeh, F. and Reed, M. (2014), “Does the Internet increase labor productivity? Evidence from a cross-country dynamic panel”, Journal of Policy Modeling, Vol. 36 No. 6, pp. 986–993.

Nguyen, B. (2022a), “The crowding-out effect of public debt on private investment in developing economies and the role of institutional quality”, Seoul Journal of Economics, Vol. 35 No. 4, p. 22.

Nguyen, C.P., Doytch, N., Dinh Thanh, S. and Schinckus, C. (2021), “Do institutions and technologies matter for trade openness? Empirical evidence from African countries”, The International Trade Journal, Vol. 35 No. 5, pp. 413–438.

Nguyen, H.M. (2022b), “The Impact of ICT on Financial Development: Evidence from Southeast Asian Countries”, VNU JOURNAL OF ECONOMICS AND BUSINESS, Vol. 2 No. 5, pp. 115–123.

Nguyễn Hoàng Minh. (2022a), “Tác động của ICT đến phát triển tài chính: Bằng chứng thực nghiệm tại một số Quốc gia Đông Nam Á”, VNU JOURNAL OF ECONOMICS AND BUSINESS, Vol. 2 No. 5, pp. 115–123.

Nguyễn Hoàng Minh. (2022b), “Tác động của ICT đến hoạt động đổi mới: Bằng chứng thực nghiệm tại một số Quốc gia Đông Nam Á”, Tạp Chí Quản Lý và Kinh Tế Quốc Tế, Vol. 151 No. 12/2022, pp. 56–70.

Ozcan, B. and Apergis, N. (2018), “The impact of internet use on air pollution: evidence from emerging countries”, Environmental Science and Pollution Research, Vol. 25 No. 5, pp. 4174–4189.

Palvia, P., Baqir, N. and Nemati, H. (2018), “ICT for socio-economic development: A citizens’ perspective”, Information & Management, Vol. 55 No. 2, pp. 160–176.

Porter, M.E. (1990), “The competitive advonioge of notions”, Harvard Business Review, Vol. 68 No. 2, pp. 73–93.

Romer, P.M. (1986), “Increasing returns and long-run growth”, Journal of Political Economy, Vol. 94 No. 5, pp. 1002–1037.

Salahuddin, M. and Gow, J. (2016), “The effects of Internet usage, financial development and trade openness on economic growth in South Africa: A time series analysis”, Telematics and Informatics, Vol. 33 No. 4, pp. 1141–1154.

Sharma, G.D., Rahman, M.M., Jain, M. and Chopra, R. (2021), “Nexus between energy consumption, information and communications technology, and economic growth: an enquiry into emerging Asian countries”, Journal of Public Affairs, Vol. 21 No. 2, p. e2172.

Suvankulov, F., Lau, M.C.K. and Chau, F.H.C. (2012), “Job search on the internet and its outcome”, Internet Research, Vol. 22 No. 3, pp. 298–317.

Tripathi, M. and Inani, S.K. (2016), “Does internet affect economic growth in sub-Saharan Africa?”, Economics Bulletin, Vol. 36 No. 4, pp. 1993–2002.

Wahab, N.A., Nayan, S. and Cheah, Y.K. (2020), “Internet user and economic growth: empirical evidence from panel data”, Journal of Emerging Economies and Islamic Research, Vol. 8 No. 3, pp. 17–25.

Wang, J., Wang, W., Ran, Q., Irfan, M., Ren, S., Yang, X., Wu, H., et al. (2022), “Analysis of the mechanism of the impact of internet development on green economic growth: evidence from 269 prefecture cities in China”, Environmental Science and Pollution Research, Vol. 29 No. 7, pp. 9990–10004.

Wooldridge, J.M. (2001), Econometric Analysis of Cross Section and Panel Data, Cambridge: The MIT Press.

Wooldridge, J.M. (2005), “Fixed-Effects and Related Estimators for Correlated Random-Coefficient and Treatment-Effect Panel Data Models”, The Review of Economics and Statistics, Vol. 87 No. 2, pp. 385–390.

World Bank. (2023), “World Development Indicators”, available at: https://databank.worldbank.org/indicator/NY.GDP.MKTP.KD.ZG/1ff4a498/Popular-Indicators.

Yu, B. (2022), “The impact of the internet on industrial green productivity: evidence from China”, Technological Forecasting and Social Change, Vol. 177, p. 121527.

Zoroja, J. (2016), “Impact of ICTs on innovation activities: Indication for selected European countries”, Naše Gospodarstvo/Our Economy, Vol. 62 No. 3, pp. 39–51.

Downloads

Download data is not yet available.

Published

25-10-2023

Abstract View

356

PDF Downloaded

140

How to Cite

Nguyen, H. M. (2023). Impact of the Internet on Investment Activity: Evidence from Southeast Asian Countries. VNU JOURNAL OF ECONOMICS AND BUSINESS, 3(5), 1. https://doi.org/10.57110/jebvn.v3i5.182

Issue

Section

Original Article