Conceptual Framework for ICT Development and Foreign Direct Investment Inflows as Drivers for Sustainable Economic Growth: Evidence from China and Malaysia

Abstract

Development of information and communication technology (ICT) plays a crucial role in catalysing economic growth. This paper proposed a conceptual framework for ICT development and foreign direct investment inflows as driver for economic growth in China and Malaysia. Although some studies have found evidence of the positive effect on economic growth of ICT development and FDI, others have revealed the opposite outcome. Policymakers are expected to implement specific policies that enhance the penetration of ICT in countries such as providing low pricing and improving ICT infrastructure. In addition, policy makers should develop policies to strengthen the macroeconomic position that leads to a stable financial sector and the use of foreign investment.