The Impact of Information and Communication Technology (ICT) on the Value Added at the Road Transport Sector in Provinces of Iran: A Case Study inthe Passenger Transport Subsector

Document Type : Research Paper

Authors

1 Assistant Professor at Islamic Azad University, Firozkoh, Iran

2 Ph.D. Candidate and Academic Member at Islamic Azad University, Firozkoh, Iran

Abstract

In recent decades, information and communication technology (ICT) has been one of the important resources for economic growth, efficiency, and productivity improvement. In this paper, the impact of ICTis evaluated on the value added at the road transport sectorwith a specific focus on the passenger transport subsector in provinces of Iran with using an unbalanced panel data approach and the data for 2000, 2003 and 2007.The results indicate that non-ICT capital and labor have a dominant role in value added andthe impact of ICT is significant and positive. Also, ICT capital productive elasticity has emerged to be 4 percent. Furthermore,the findings suggest thatphysical capital andlabor as two factors complementary to ICT can have an impact on value added. The elasticity of combined and synthetic variables (i.e. ICT capital plus physical capital as well as ICT capital plus labor force) are different from ICT capital productive elasticity.

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