Report on economic growth in Information Communication Technology

In spite of economic growth in Information Communication Technology, there are some other factors that growing sharply in different parts of the world such as job and income inequality.  Income inequality is single but the greatest threat to the social instability of the world. The world process of technology development contributes to improvement in the of job positions by robots, an increase in labor productivity, and uses of automatic machines that leads to social inequality. The aim of the present work is to evaluate changes in the technology and how it impacts on the inequality of economic conditions and income inequality. The global financial crisis is also considered to identify the technological development in the communication and two economic categories that are technological development and income inequality. The mechanism of development and redistribution of economy induces impact on the technological changes. The development economy of the country has less impact on income inequality as it initializes technological changes. The higher change in income inequality of the country response to higher technological changes and their impact on inequality can be negative as well as positive. The theory suggests that Rapid increase in the learning ability of the graduates leads to inequality during the past few years.  

Literature review of economic growth in Information Communication Technology

Daron Acemoglu worked on the challenging condition for the compliment use of Technologies and how these skills lead to technical changes and wage inequality. The higher proportions of skilled workers were considered for implementation of new technology and how they learn about these Technologies. The faster upgradation of productivity is also considered in relation with the skilled employees and technological development. The technical changes and complementary skills are considered. The research is based upon empirical models, formal model, and skill complementary model with the consideration of labor complementary machines. The skilled and unskilled workers were considered as inelastic labor supply and preferences were provided to unique consumption level of Technology in the employees. The complementary goods and production processes are considered for the market segment. The standard relative demand equation was used for the analysis of prices substitution. The higher level of productivity was observed with increasing technology in the workplace. The outcomes of learning skills were different for skilled and unskilled employees. The improvement in ability was observed with skill complementary technology enhancement. The size of the market is relative to skill complementary Technologies and formal analysis was established for second-factor domination that is price effect due to implementation of Technologies. Equilibrium was observed for productivity conditions with the technology investment. Generally, the adaptation of Technology and innovation shows higher technical changes for inventions and different sizes of the market. Researchers develop a test directed for technical changes and the structure of wages. The model evaluated skilled workers and complementary technology changes adaptation and application of different communication Technologies. Conceivable conclusion approved hypothesis that rate of Technical changes is based upon the growth of industries and skills of employees. The higher the skill of employee the higher will be outcomes and more development will be observed. The dispersion and reach of investment in computers with the increase in the essence of ICT has been crucial in so many ways. The computer investments made in different sectors including manufacturing sector has been an important part of the history especially in United States during the era of 1970 till the era of 1990s. In this era, it was observed that wage inequality in United States was at its peak, because country was experiencing a technological change in so many ways, which was based on skill-biased approach. The computer started to gain its space in every field of business in that era and it was evident that skilled workers are needed to deal with these computers. This change based on skills was happening in different business sector including the manufacturing sector of United States. So, skilled workers started to get more wages, whereas unskilled workers were struggling to meet those trends, which meant that growing influence of computers was increasing the wage and income inequality (ACEMOGLU, 1998).

According to author Conceição & Galbraith (2001), it is codnuted that building of information technologies and learning abilities of the workers by providing them with state of art technological. The research was conducted to identify the communication and information technology and how it works in the economic development of the world. The development communication technology is considered for business process, valuable economic development, and digital inequality, streaming of national information infrastructure, language barriers, and constraints in the building of information technology capabilities in the development of the country. The present work was based on a case study that focuses on the e-learning issues initiatives in Sri Lanka.  The research is based on quantitative analysis in which 150 employees of government ministry were selected to check capability regarding hybrid learning diploma programs provided by the government of Sri Lanka. The hybrid models were considered for the development of technology skills in the workers and participants. All the participants were provided with the same program to learn about technology and computer. The main focus of the analysis was to evaluate the learning ability of workers about internet availability and computer programs. The research was conducted on equality basis for both male and female participants. Results carried out by researchers suggest that hybrid learning programs provided to the employees improve their skills and awareness about information technology skills and awareness The statistical analysis of Sri Lanka portraits real statistics about the education system, the geographical distribution of computer literacy, information technology pay off, e-learning opportunity, and economic inequality. The literacy rate in Sri Lanka 83%, and only 10% of people are provided with computer literate ( Conceição & Galbraith, 2001)..

In terms of generalization, UNESCO classifies Sri Lanka as a middle-income country and different levels of economic development are considered corresponding to the education rate. The government of Sri Lanka introduced distance learning education initiatives including the open university of Sri Lanka, the distance education modernization project of ministry of education, the distance learning center in Colombo, and the distance education for public service program. All the programs based upon the development of efficient technology of communication.  The preliminary findings identify the role of the individual in learning computer programs. The use of the internet improves personality dimensions, course outcomes, and openness to the experience of the new learning environment. The potential of individuals is highly suited to the hybrid learning experience. In response to the designed program, the effectiveness of programs is considered. During the program, the overall response rate of participants improved from 40% to 65%.The aim of the reviews indicated the requirements that is reflect to the income inequality aspect of ICT. The ICT has been making its mark with regards to economic development. It has been observed that outsourcing of business processes is getting more frequent with the help of these information and communication technologies, which means that reach of these technologies can be spread to developing parts of the world. The good thing about ICTs is that with their presence, the developing world can also experience economic development. It can be an important tool in these countries to develop their economies as developed world has been able to do so.

But fact of the matter is that ICT cannot be adopted in developing countries like developed world, because they have to face various issues such as language barriers, lack of skills, and lack of IT infrastructure as well as illiteracy. In the research, conducted to identify differences between CST “Computer-Supported Training” perceptions at the beginning of the program at the end of the program, the participation perception improved particularly in the case of women participants. At the beginning of the courses, the digital in equity was based on social organizations, government programs, pricing policies, content, and industry structure. The findings of the research include processes, inputs, outputs, and summaries model for the improvement of information technology in the organization

The success of the program is certainly based upon the selection of the participants, the behavior of participants regarding programs of information communication technology. The findings of the research are generally applicable to improve levels of economic development and computer access issues in the selected organization.  Learning of employees through online programs and planning programs increases working capability and dependency of culture in the organization.  Employees and workers getting more experience of hybrid environment and technology find new ways of improvement in the promotion.  Therefore, at the same educational level, different technological level, the variation in income is observed that leads to income inequality in the organization.

According to author Dunne, Foster, Haltiwanger, & Troske (2004), a study conducted in 2004 tried to investigate that how wage as well as productivity was disperses in U.S manufacturing industry with the context of investment in computers. The established data regarding employment, wages and production was analyzed by the researchers to come up with considerable findings. The study found out that wage dispersion between the components of plant was crucial in growing the element of overall wage dispersion. It was also found out in the study that wage as well as productivity measurements in between plant elements has been increasing, which ultimately increased overall dispersion of these elements.  It has also been observed that when big economic changes do occur, then various people starts to earn more income than others, and this fact creates a gap between the people in terms of income inequality. It means that income inequality and economic change can rise together. The study revealed that two measures were used to see the level of income inequality and economic change in region of Oslo from year 1993 to year 2004. The study observed that majority of economic changes was happening because of knowledge intensive business services. It was also observed that changes were evident in mean income, and there were minor shifts in terms of economic segments. In the end, the study revealed that there is complex and intense interplay between postindustrial growth, job segregation, institutional interventions, and labor markets. It was evident that knowledge intensive business services with the help of labor mobility was most important element as a distributive force. It means that labor using more knowledge and technologies can play their part in changing the dynamics of economy and its changes, which happens with the passage of time. The main theme of the research was to identify income inequality in Norway, along with policy responses for a different level of inequality in organizations.  The parallel stream of the research, the competition between employment and growth is analyzed for dynamic regions of Norway. Different knowledge-intensive business services were identified by researchers in the region Oslo of Norway. The research also considered contradictory development of an Oslo, related to increasing inequality and economic growth. Two schemes are considered in different demographic groups. In the first scheme, the increasing gap is measured for the mean income of participants in the segment of knowledge-intensive business services. The evaluation is related to increase or decrease of residual inequality in the economy due to technological development. On the other hand, the second segment considers the growth of knowledge-intensive business services to identify group gaps and redistribution of income at National and gender background.

Different types in this region include compensation schemes for the mergers, use of technology and layoff, and sale of the product line. The overlapping is identified for ethnic and graphical equality in the workplaces. The statistical analysis defines that decline in the manufacturing process and use of high technology in the workplace is due to inequality in black and white wages. Other factors are demographic structures and wage inequality overcomes due to wage differences in Hispanic, white, black, and Asian employees. The research suggests that complexity due to ethnic and racial groups in the workplace leads to inequality in the wages.  According to the previous research, quoted by the researcher, Asian women are relatively worse in technology and computer uses. The misappropriate proportion is identified for high Technology Services employment, data processing, and computers. The urban economy is a driving factor in the knowledge-intensive industries that increase productivity at different operations and levels by having externalization of activities, uses of new and innovative technology, participation in the cross-border networks, adoption of flexible working practices, Union density, disruptive innovation, and variation in the payment schemes (Dunne, Foster, Haltiwanger, & Troske, 2004).

In a research conducted by Claudia Goldin and Lawrence F. Katz (2007) relation between occupational wages and the US education system was considered for the several stages of the 20th century .The research shows that the 20th century comprises of different inequality considerations for rising and declining processes. Supply demand institution frameworks are used to produce the changes from 1980 to 2005. In the researcher, strong growth relation was considered for educated workers and the relative demand for educated workers was higher. Based upon the statistical analysis it was concluded that fluctuation in the growth for the skilled employees was identified with educational wages differential. With the improvement of Technology is the rate of growth for the skilled workers was improved. Slowdown and relative development were identified for college workers. The major reason for merging institutional factor. Educational differences lead to educational wage differences at the workplaces. The researchers identify the relationship between inequality and industrial structure by initiating through Kuznets’s inverted U-curve and ending at ideal type Framework for unbalanced growth, institutional intervention, and selective mobility.  In the other section that is search to identify growing inequality in the economy and demographic groups.  The paper highlights, rising inequality in Oslo, labor market mobility, and policies of the institutions. The research shows that inequality remains constant and stable through the educational groups. While in the case of industrial sectors the increase in earnings inequality is taking place for producers, high Technology distribution, services, and high Technology manufacturing. In the industries, it is possible to identify the emergence of shareholder values, incentives for the maximization of short-term growth, the role of the board of directors for the traditional rights of shareholders, and benefits of welfare. The estimated wage difference was higher for college students. The skilled groups of graduates were never equivalent to unskilled students that were dropped out from the colleges and schools. Demographic groups were considered for different genders including female and male students.  At the end of the research, immigrant employment share was also considered to check the employment rate. Other factors included in the research and educational rights of participants, birth coherent shares of graduate students, and estimated participation rates of the female and male students in the development of technology (Goldin & Katz, 2007).

It has been observed in the literature that researchers Samoilenko & Osei-Bryson (2011) have tried their best to investigate the relationship of ICTs with their economic outcomes. It is important for the researchers and relevant people to investigate that how ICT has played its part in changing the dynamics of economy and how it has been a reason for increasing income inequality. Various research studies have been conducted to see that if ICT access as well as skills were more in one particular society, then how income inequality gap got wider. It is a fact that ICT has developed a network society all around the world, which is connected with each other in so many ways. But fact of the matter is that inequality related to ICT has been growing in this network society. A study was held by researchers to see that how informational and income inequality has been injected into network society by ICT and its relevant elements. The study kept three major things in perspective; first thing was access to ICT and its devices, second thing was basic skills, and third thing was complex capabilities. It is a fact that most of these studies have been keeping their focus on developed world, but few researchers have also focused on developing world as well. The role of this research has been instrumental to know that how things have been changing in developing, transition and emerging economies, when ICTs mad their influence in so many ways. It has been seen over the years that lots of investment has been made in ICT so that productivity and results are achieved with better outcomes. The primary focus of research has been to examine the relationship between GDP and investment in ICT, where less focus was given to total factor productivity (TFP) and investment in ICT. One of the studies were conducted, which turned its focus to transition economies which has been instrumental in understanding the differences as well as similarities carried out for developing/transition economies and developed economies. The study came up with a new method to investigate that what relationship is held between TFP and ICT by keeping neoclassical growth accounting framework in context. This method proved handful to investigate the various research questions asked by the research study ( Samoilenko & Osei-Bryson, 2011)

According to Author Dell’Anno & Solomon (2014), research has to focus on the facts and reasons, which are playing its part in developing inequality in different manners between individuals and societies. Keeping this fact in view, Dell’Anno and Solomon conducted a research study in 2014, and aim of this study was to examine that what quality is shown by ICT as well as institutional infrastructure, between the income inequality and informal sector. The study found out that result for this quality was based on the fact that what is the quality of institution to encourage income inequality. The major findings of the study revealed that when quality shown by the institutions is not strong, rather its weak, then it means that less ICT as well as human capital is invested by concerned agents, which results in the shape of less income inequality in formal sector. The study found after looking at data from sixteen countries that for informal sector, the ambiguous results shown with income inequality. The study revealed that if income inequality is there for informal sector, then it means that quality of institutions as well as skills of human capital does matter in so many ways. More research is needed to see this relationship with more depth so that relevant solutions can also be found. It is important to keep in mind that such issues are very much evident in transition economies, where ICT skills and capabilities are not established, as these are established in developed economies. The quality of the relationship between institutional infrastructure and information system is highly based upon communication technology and the relationship between different sectors of the organization. The outcome of research defines the relationship between information technology, income inequality, and quality of institutional infrastructure. The researchers highlighted different problems related to the relative sizes of information technology and hidden entity of information communication technology. Contribution of the informal sector for reducing income inequality along with human capital is discussed. The quality of institution has a significant role in income inequality in the transition countries.  The theoretical model is used to show the relation between the information sector and reducing the process of income inequality. Higher levels of human capital also identified with the uses of information communication technology and the productivity of the company increases. The researchers based upon theoretical consideration for agent investor and formal sector production processes. The expectation operator, discount factor, aggregated consumption factor, and the sum of aggregated consumption factors are considered as variables. The function is continuously differentiable and concaves up for increasing the values of aggregate consumption ratio. The proportion between output and income is considered another model of human capital in a broad term of ability. The abilities of human being include competency, skills, experience, and frame knowledge. The calculated amount of human capital is based upon the production and quality of the institution. The higher quality of institution reduces the stock of human capital and improves production levels along with an increase in the elasticity of human capital. The accumulation of human capital stock contributes to the development of human capital and economic opportunities.  The theoretical model used in the research identifiers improvement in income equality with increasing usage of information technology. In case of investment and purchase consumption equilibrium is maintained for the budget constraints. The empirical analysis was based upon three-panel regression for the estimation of 15 transactions in the countries. The robust empirical evidence is used in the theoretical model to identify an increase in institutional quality and how it is related to the income inequality in the selected countries. The theoretical model of information communication technology investment was directly related to income inequality and as a result, alternative proxies were used (Dell’Anno & Solomon, 2014).

The research conducted by Mendonça, Crespo, & Simões (2015) was based on the analysis of inequality in the network society and researchers proposed an integrated approach to deal with the complex capabilities of the users and access to information communication technology and basic skills of the workers. The main purpose of the paper was to seek new approaches and studies for the information and inequalities and how it can be tackled with information Communication Technology. In the research, the network society is considered for digital experience and three sub-indexes were considered. The composite measurement is considered for quantitative assessment and informational inequality levels for the employees and individuals. The research is based upon large-scale official survey for the information collected about the knowledge of the society the standardized Data Collection instruments were used for the analysis of Portugal. In the research 7175 respondents were considered and new standards were implemented in Portuguese National Statistics Office during 2011. The outcomes of research identified a higher level of inequality in the workers particularly in terms of the ability for the basic working conditions and complex Information Communication Technology Utilization. The inequality configuration was based upon employment situation, age, education, income distribution, and household type. The method using search extended National cases to identify the appropriate meaning of an increase in income inequality. Another consideration was equality friendly Information Communication Technology policies for the digital division and availability of different tools in this consideration. The research identifies emerging behavioral development for interactive uses of Information Technology by individual and group of workers. The effective adaptation of new techniques is considered to find abilities of the new generation to learn about information technology and to identify a systematic particle point of view about the technology development.

The effective adaptation of inevitable and new technologies was uneven for digital literacy and e-inclusion. Because the question of the research was to understand the context of dynamic Information Communication Technology, the emphasis was on the growing economic challenges and policies of government to resolve the new crisis. The statistics of information communication Technologies in the selected country define globalization of economy, information on modes of organizations, economic structures, broadband penetration of Information Technology, and the highest ratio of GDP for supply side. Multivariate approaches are included for the Limited number of interrelations. The analytical approaches were used to define the adaptability of information technology in the organization. The empirical strategy was used under the comprehensive framework and systematic approaches of digital age and inequality of income. The range of dimensional index for the collected data was from 0 to 100. Other factors measured in the analysis were poverty, richness, and inequality. The inequality is identified exclusively for the poor population having no interaction with the information technology. The modeling of the information is defined by linear function based upon the explanatory variable and random term error. The normal distribution is for zero mean and unit variance.  The other parameters of the probit model are explanatory variables, standard normal cumulative distribution function, ICT variable distribution, and analytical flexible characteristics of the respondents. The overall range of index was between 0 and 99.5 along with the average value of 38.6.  The increasing trend with increasing the class of participants from poor, middle class, and rich classes throws more capability to work with information technology (Mendonça, Crespo, & Simões, 2015).

The researcher Falck, Heimisch, & Wiederhold (2015), identifies the importance of Communication Technologies and the modern labor market. The identification strategy is based upon international festival and formation of information communication technology skills. Information Communication and Technology skills are substantially rewarded by different standardization processes in the market of Germany. The researchers estimated internet availability and how literacy and numeracy skills can work for the identification of variation in the general ability of workers. The main reason for the lack of research in the availability of data and improvement of information technology is the difficulty in credibility and interferences of workers. In the paper, the systematic assessment is considered for skills of information communication technology and wages returned through considering the program of the international assessment of adult competencies. Variable model is used for identification of internet access in the country and geographical areas in which internet services provided to the workers. The literature has been looking at various aspects about growth and inequality. The work of Simon Kuznets is crucial in this regard, as he has been working on this topic more closely. Kuznets tried to present a broad hypothesis about development process, where he said that when economic progress is happening, then it means that inequality is also increasing. He actually was referring to the early period of industrialization that when economies were growing, the inequality was getting intense, because income gap between individuals was increasing. He also came with a view that when industrialization was deepening in society, the level of in equality started to decline. It has been observed that when Kuznets hypothesis was tested by various studies, the point made by Kuznets was no validated by these particular studies, but fact of the matter is that these studies have been very much limited in their scope and their data has been deficient, which means that their findings cannot be taken as reliable resources for future research on Kuznets hypothesis. In one of the studies, the OECD was analyzed with the essence of inequality to see that what dynamics are shown in terms of inequality, and how things have been happening. The Kuznets curve was used with his view point and after analyzing the dataset; it was evident that when economic growth happened in developing countries, the inequality also increased in this process. It has also been observed that increasing inequality has been happening because technological changes happening in different locations are biased, which means that everyone don’t gets equal chance to achieve these skill sets (Falck, Heimisch, & Wiederhold, 2015)..

The research conducted by Sirine Mnif (2016) is based upon analysis of technological changes and inequality. The transmission mechanism is used to find inequality in employment and Technology innovation. In the workplaces diffusion of innovation is higher and the demand for skilled labor is also highest. The recruitment processes in organizations are based upon technological skills. The empirical validation is used in the work to evaluate the dynamic distribution processes. The positive relationship is used for demanding skill labor and innovation while on the other hand a negative relationship is measured for unskilled labor. Inequality is mainly a challenge for a society having poor workers, political instability, social Cohesion, feeling of social tension, and civil unrest. The technological changes favor more skills and abilities of the workers that eventually replace unskilled labor. Several researchers worked on measuring the causal relationship between the development of Technology and changes in the distribution of wages in different companies according to our economy. In the present research, empirical analysis is used for capturing of changes in relative wages. The panel data is used to measure production level, delayed variables, technological changes, purchasing power parity, and capital values. The statistical databases are used for the contribution theory of investment (Mnif, 2016).

According to Authro Kharlamova, Stavytskyy, & Zarotiadis (2018) the things have been changing quickly with the help of ICT and its progress around the world. It has changed the way economies have been developing over time, and it added so much variety in the economic change process. The developed world has been more knowledgeable and equipped in terms of ICT and its basic knowledge and skills. But this is not the case with transition economies, who have been struggling to get their firm position through ICT by creating an economic environment, which is based on income and information equality by mitigating the elements of inequality. But still, various efforts are needed in this regard to bridge this gap to eliminate inequality at all fronts. The developed world can play a big part in making sure that changing developing economies are able to gain equal level of access and skills related to ICT so that these societies can be capable to use ICT and its aspect for bringing positive economic change, which changes the lives of majority of people. If only a short segment of society is changing their fate with ICT, it means that ICT is developing inequality in so many ways which can play its part in income as well as informational inequality. Network on the supply side is mainly due to the definition of broadband side effects and variation in the Technologies. The key threats are identified for selectively relocated people. The complement of analysis was carried out by having a comparison of the German socio-economic panel. The cross-country evidence is considered in the analysis to identify Strategies and causal effects of information communication technology skills on the individuals. The estimation results define the coefficient of skills and statistical significance of Elementary operation on the basis of the development of Technology. Baseline returns for the manager comprise of different ratios of public and private sector workers.  The skills of information communication technology are strongly required by the public sector and as well as in the private sector. (Kharlamova, Stavytskyy, & Zarotiadis, 2018).

Conclusion on of economic growth in Information Communication Technology

In case of the rapid development of organization highly skilled employees are required to deal with different issues. With the evolution of technology, mostly the organizations and their management departments are highly conserved to deal with new technology and to implement innovative solutions for the processes. In order to implement new and innovative strategies organizations are required to upgrade the system and to recruit highly skilled employees. In different countries, information technology of communication is considered as a subject for graduate students while on the other hand the poor countries and co-education system life importance of these objectives. In the present work, different researches identified implementation of new technologies and how it leads to income inequality. In case of low skilled and unskilled employees, the monthly wages reduce while on the other hand if the organization recruit highly skilled and educated employee the monthly wages increases. The difference in the wages of skilled and unskilled employees leads to income inequality and wage differences. The present work deals with the wage differences occurring due to implementation of innovative and new technologies.

References of economic growth in Information Communication Technology

Conceição, P., & Galbraith, J. K. (2001). Toward a New Kuznets Hypothesis: Theory and Evidence on Growth and Inequality. In Inequality and Industrial Change: A Global View (pp. 139-160). Cambridge University Press.

Dell’Anno, R., & Solomon, H. O. (2014). Informality, Inequality, and ICT in Transition Economies. Eastern European Economics, 52(5), 3–31.

Samoilenko, S., & Osei-Bryson, K.-M. (2011). The spillover effects of investments in telecoms: insights from transition. Information Technology for Development, 17(3), 213–231.

Wessel, T. (2013). Economic Change and Rising Income Inequality in the Oslo Region: The Importance of Knowledge-Intensive Business Services. Regional Studies, 47(7), 1082-1094.

ACEMOGLU, D. (1998). WHY DO NEW TECHNOLOGIES COMPLEMENT SKILLS?DIRECTED TECHNICAL CHANGE AND WAGE INEQUALITY. The Quarterly Journal of Economics, 01(01), 1055-1089.

Carte, T. A., Dharmasiri, A., & Perera, T. (2011). Building IT capabilities: learning by doing. Information Technology for Development, 17(4), 289–305.

Dunne, T., Foster, L., Haltiwanger, J., & Troske, K. R. (2004). Wage and Productivity Dispersion in United States Manufacturing: The Role of Computer Investment. Journal of Labor Economics, 22(2).

Falck, O., Heimisch, A., & Wiederhold, S. (2015). RETURNS TO ICT SKILLS. International comparisons, 01(05), 01-78.

Goldin, C., & Katz, L. F. (2007). THE RACE BETWEEN EDUCATION AND TECHNOLOGY: THE EVOLUTION OF U.S. EDUCATIONAL WAGE DIFFERENTIALS, 1890 TO 2005. NATIONAL BUREAU OF ECONOMIC RESEARCH, 01(09), 01-48.

Kharlamova, G., Stavytskyy, A., & Zarotiadis, G. (2018). The impact of technological changes on income inequality: the EU states case study. Journal of international studies, 11(02), 76-94.

Mendonça, S., Crespo, N., & Simões, N. (2015). Inequality in the network society: An integrated approach to ICT access, basic skills, and complex capabilities. Telecommunications Policy, 39(01), 192-207.

Mnif, S. (2016). Skill biased technological changes: Case of the MENA Region. Theoretical and Applied Economics, 03(608), 339-350.