Effects of Information and Communication Technology Usage by Individuals, Businesses, and Government on Human Development: An International Analysis

Abstract

The effects of information and communication technology (ICT) on development have been studied primarily from the perspective of their contributions to a country's economic growth. However, ICT can offer individuals much more than just monetary income it can improve many aspects of their quality of life. In fact, according to the human development paradigm, income is only one resource that helps individuals to satisfy their economic needs. Using the capabilities approach as a theoretical framework, this study applied data panel technique to a sample of 145 countries to investigate how the use and adoption of ICT, by individuals, enterprises, and governments, affects human development, as measured by the Social Progress Index and Human Development Index (HDI). The results show that regardless of a country's level of development, the individual use of ICT has a positive impact on human development; especially on the dimensions measured by HDI (having a long and healthy life, being knowledgeable, and having a decent standard of living). Furthermore, the use of ICTs for commercial purposes has a positive impact on human development at the global level, but if we make the analysis considering only developed countries, the relationship of this variable with human development is no longer signi cant. Regarding the impact of government use of ICT on human development, it has been veri ed that it is signi cant on developed countries. This study can be used as a tool by policymakers, especially in developing countries, to reinforce their intentions to support the use and implementation of ICTs.