INFORMATION TECHNOLOGY AND PRODUCTIVITY GROWTH IN ISLAMIC COUNTRIES

The aim of this research is the study of information and communication technology effects on productivity in Islamic countries. We have applied a balanced panel data model. Hausman (1978) test shows that we should apply fixed effects model. We have estimated our model for Islamic countries for the period of 1990-2010. The results show that gross domestic product, openness, human capital, capital formation, labor force and information and communication technology have positive impact on productivity. Therefore, these countries can increase their productivity with augmentation of expenditures on ICT.