Title: Information technology, revenue creation and growth: an international comparison of causality
Authors: Jianyu Ma, Gokce Soydemir
Addresses: College of Business Administration, The University of Texas-Pan American, Edinburg, TX 78539-2999, USA. ' Department of Economics and Finance, College of Business Administration, The University of Texas-Pan American, Edinburg, TX 78539-2999, USA
Abstract: In this paper, we examine the extent of the relationship between PC installation and revenue creation using Gross Domestic Product (GDP) growth in different economies and by running a series of Granger causality tests. Our findings show that in developed economies the total PC installation and the PC installation in home market Granger cause GDP growth, whereas GDP growth only Granger causes the PC installation in the market for education. However, in developing economies, there appears to be a unidirectional causality in that GDP growth Granger causes total PC installation, PC installation in education and PC installation in business and government markets. We do not find any PC installation variables Granger causing GDP growth, including PC installation in home market. Overall, our results show that developing economies, unlike developed economies, do not gain from investing in Information Technology (IT) in the short run.
Keywords: economic growth; GDP growth; Granger causality; information technology; revenue creation; revenue management; gross domestic product; PC installation; personal computers; developing economies; developing countries.
International Journal of Revenue Management, 2007 Vol.1 No.2, pp.217 - 230
Published online: 08 Mar 2007 *Full-text access for editors Access for subscribers Purchase this article Comment on this article