Thursday, 23 March 2017: 16:50
This study aims to investigate the evolution of information technology development and examine the impact of information technology development on the economic growth of Thailand. Many economic development theories have been reviewed to construct the conceptual framework. These theories consist of modernization and basic need theories as well as neo-classical and Keynesian approach theories. Most previous studies have not examined all of the Association of Southeast Asian Nations (ASEAN) countries. The ASEAN economy growth recovery has been considerably high despite financial and economic crises. Both necessary and related qualitative and quantitative data have been collected and analyzed to address the research objectives. Time series data has been obtained from the World Bank, United Nations and Econstats databases to assure accuracy and reliability. Dependent variables are gross domestic product (GDP) at 2010 market prices, and independent variables are openness, foreign direct investment (FDI), gross fixed capital formation, and private investment in the telecommunications industry. The linear multiple models have been set up to estimate by using the appropriate ordinary least squares (OLS) method. All variables incorporated into the models have been tested to check and guarantee the same stationary level. Based on the empirical result, it is found that FDI, gross fixed capital formation, and openness have positive relationships with economic growth at the same significance level of 95 percent. By contrast, only private investment in the telecommunications industry is insignificant. Therefore, it can be regarded that information technology development in the long run should be supported by the continued accumulation of gross fixed capital formation via FDI attraction policy implementation and a high degree of openness. In summary, it can be stated that information technology development is one of possible engine of growth for developing countries.