The Impact of Diffusion of Information Communications Technology (lCT) on Iran Sectoral Productivity Growth

An attempt is made to establish a link between ICT sector investment and economic growth and to assess the specific impact on the productivity of the economy through network of 10 industrial sectors. By using improved techniques comprising input and output technique and economic modeling, that results suggested that ICT productivity has outpaced the economy wide productivity level. Furthermore, we found that ICT was a negatively contribute to the performance of economic system as a whole. Indeed the analysis conducted in this paper shows that more industries especially service sector have not been benefited from the incorporation of advances in telecommunications technology which might have, amongst other things, emanated from the policy of discouraging information investment in their production processes. To achieve this, the government must address a number of policy and regulatory issues to ensure the sector s continued growth and its extension into underserved areas.