A GOVERNMENT ROLE THROUGH ICT FOR ECONOMIC GROWTH

  • Eddy Irsan Siregar Universitas Muhammadiyah Jakarta
  • Wiwiek Prihandini Senior Lecturer at Asian Banking Finance and Informatics Institute PERBANAS
  • Muhammad Gunawan Setyadi Lecturer at Institut Teknologi Bisnis AAS Indonesia
  • Muhammad Ihyakulumudin Research Development and Training Agency Ministry of Religious Affairs
Keywords: ICT development, Digital Divide, Bridging Digital Divide, Economic Growth, Role of Government, Ease of doing business, Social safety net protection.

Abstract

- The economic growth processes and their acceleration have become essential factors in solving social and economic problems. Innovation-driven Information and Communication Technology (ICT) is believed to be the driver of economic growth. However, ICT raises the digital divide problem, which weakens the influence of ICT on economic growth. This study aims to develop a model that can explain the role of government as a factor that strengthens the influence of ICT on economic growth. The model is formulated using data from 114 countries listed in the Network Readiness Index (NRI) 2019. The study results prove that the digital divide is a factor that weakens the influence of ICT on economic growth and the role of government as a factor that strengthens the influence of ICT development on economic growth. This study recommends that innovations for ICT development provide options for countries that find it challenging to invest in ICT development, especially for 4.0 or 5.0 technological innovations. Nevertheless, human resource development is used to realize innovations in ICT development.  

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Published
2022-09-26
Section
Articles
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