What is it about?

Internet penetration can promote economic growth as it provides new avenues for economic growth. However, the extent of opportunities from the internet is dependent on the human capital of an economy. Thus, this study examines the role of internet and human capital in economic growth. This study finds both are positive to economic growth and are complementary to each other.

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Why is it important?

This study is important in the context of developing economies such as the ASEAN economies. These economies have gradually implemented policies to improve the telecommunications sector and have plans to integrate telecommunications across the ASEAN economies. The findings provide policy implications to further promote the telecommunications sector.

Perspectives

Human capital development as a measure can be misleading. Having high education measured by schooling can give the illusion that there is high human capital development, yet it is the actual know-how and embodied knowledge within the Internet that can set economies apart through the effective usage of Internet in the economy. It may be interesting to examine how the Internet improves or stimulates the level of innovation and creativity in an economy or in firms and whether this affects productivity growth.

Dr Hazwan Haini
Universiti Brunei Darussalam

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This page is a summary of: Internet penetration, human capital and economic growth in the ASEAN economies: evidence from a translog production function, Applied Economics Letters, March 2019, Taylor & Francis, DOI: 10.1080/13504851.2019.1597250.
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