Assessing the role of information and communication technology in reducing the gap between rich and poor: the case of South Asia
International Journal of Social Economics
ISSN: 0306-8293
Article publication date: 28 June 2022
Issue publication date: 19 September 2022
Abstract
Purpose
The widening income gap between rich and poor has gained worldwide recognition in recent decades. This income gap between rich and poor is defined as the extent of income unevenly distributed in a host country. This study provides an empirical view of the association between information and communication technology and the widening of the income gap.
Design/methodology/approach
The study used panel data from 2005 to 2019. To detect unit root issues, Levin and Lin (LL) and Im, Pesaran and Shin (IPS) tests were first employed. The pooled mean group and mean group estimators were employed to investigate the short and long -term impact of information and communication technology and other control factors on reducing the gap between rich and poor in South Asia.
Findings
The results showed that the Pooled mean group's findings are more efficient and consistent as compared to mean group estimators. The results of the paper showed that the greater penetration of information and communication technologies in the economy negatively and significantly affects income inequality. Moreover, the information and communication technology, foreign remittances and foreign direct investment (FDI) significantly reduce the gap between rich and poor in the long run.
Practical implications
At last, the findings of the study serve as an excellent roadmap for policymakers seeking to address the issue of growing income inequality in the South Asian regions and worldwide.
Originality/value
Based on the findings of this study, South Asia can reduce the gap between rich and poor by investing more in the information and communication technology sector.
Peer review
The peer review history for this article is available at: https://publons.com/publon/10.1108/IJSE-10-2021-0638
Keywords
Citation
Ahmad, S., Khan, D. and Haq, I.u. (2022), "Assessing the role of information and communication technology in reducing the gap between rich and poor: the case of South Asia", International Journal of Social Economics, Vol. 49 No. 11, pp. 1663-1679. https://doi.org/10.1108/IJSE-10-2021-0638
Publisher
:Emerald Publishing Limited
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