Escaping From the Burdens of Growth: The Information and Communication Technologies Versus Bureaucracy

Başak Gül AKTAKAS, Cemil Serhat AKIN, Cengiz AYTUN

Özet


Besides being one of the main focus areas which economics is involved in, it is evident that the growth issue also seems to be highly open to change since the dynamics of growth convert in accordance with the requirements of the era. The current information age indicates that falling behind The Information and Communication Technologies (ICT) causes a decline in the economics as well. The studies suggesting the significance of the subject once again assert that only if it facilitates the bureaucratic practices will ICT have a direct along with an indirect contribution to the economic growth.In the current study, the relationship of administrative requirements, bureaucracy costs and the information-communication technologies with economic growth is presented both theoretically and empirically. Covering the period between 2000 and 2011, econometric analysis was carried out by means of a panel data analysis including the BRICS countries-Brazil, Russia, India, China, South Africa- and MIST countries - Mexico, Indonesia, South Korea, Turkey. According to the empirical findings, it was found out that administrative requirements assessed within the context of business regulations have a positive relationship with growth; whereas bureaucracy costs negatively affect the economic growth. In contrast, it was obtained that the information and communication technologies have a positive effect on growth.

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