The impact of ICT in Malaysia: a simultaneous equations approach

Jorah Ramlan and Elsadig Musa Ahmed, Multimedia University, Malaysia

Abstract: This study measures the impact of ICT on Malaysia’s aggregate output in the period 1965–2005. It closes a gap in existing literature by using the 3SLS technique on a country specific study. Telecommunication penetration rate is used as a proxy for ICT and analysed in both macro-economic and micro-economic perspectives. The findings of this study suggest that there is a causal relation between ICT and aggregate output in Malaysia and that the MSC and the privatisation policy of the telecommunication sector, are found to be indifferent to achieving expected economic growth in Malaysia.
Keywords: ICT; Malaysia; economic growth; SEM; simultaneous equations method.

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