Rita Remeikiene

Law Faculty, Vilnius University,

Lithuania

rita.remeikiene@tf.vu.lt 

ORCID 0000-0002-3369-485X

The role of ICT development in boosting economic growth in transition economies

Ligita Gaspareniene

Law Faculty, Vilnius University,

Lithuania

ligita.gaspareniene@tf.vu.lt

ORCID 0000-0002-5535-6552

Aleksandra Fedajev

Technical Faculty in Bor, University of Belgrade, 

Serbia

afedajev@tfbor.bg.ac.rs

ORCID 0000-0002-6974-6631

Vigita Vebraite

Law Faculty, Vilnius University, 

Lithuania

vigita.vebraite@tf.vu.lt

ORCID 0000-0003-4351-061X

Abstract. During the last decades, the substantial development of information and communication technologies (ICTs) has led to a number of economic and non-economic changes in all countries worldwide. The ICT progress can significantly influence macroeconomic outcomes and it is widely recognized as an important factor of the transition toward a new economic system. This transition was especially challenging for former command economies. Since these economies are characterized by relatively low standards of living, poor infrastructure and continuous changes in economy structure and regulatory framework, the ICT development can have adverse effect on economic activities. In that sense, this study addresses the role of ICT development in enhancing the economic growth in 11 EU transition economies over the 2000-2019 period, using the linear regression analysis. The obtained results suggest that ICT development has a positive impact on economic growth in the countries under consideration. However, only the link between the number of internet users and economic growth is statistically significant.

Received: January, 2021

1st Revision: August, 2021

Accepted: October, 2021

DOI: 10.14254/2071-8330.2021/14-4/1

JEL Classification: C33, E22, J24, O30, O47

Keywords: ICT development, economic growth, transition economies, macro and microeconomic effects, legal environment