Impact of the Investments in ICT on Total FactorProductivity

The goal of this research is to establish a linkbetween the subset of investments in information andcommunication technologies (ICT), namely, investmentsin Telecoms, and economic growth in the context ofcountries that are currently classified by theinternational community as transition economies (TE).More specifically, in this study we focus on therelationship between ICT and one of the determinantsof economic growth, total factor productivity (TFP).Neoclassical growth accounting and the theory ofcomplementarity provide the theoretical framework onwhich we build this research. By combining the dataobtained from two sources, the World Bank Databaseand the IT Yearbook, we were able to construct a10-year data set for 18 TEs spanning the period from1993 to 2002. Our inquiry is structured as a seven-step processthat utilizes six data analytic methods.