Impact of Information and Communication Technology Infrastructure and Financial Development on Economic Stability In Asian Countries

Abstract

This study analyzes the impact of information and communication technology (ICT) infrastructure and financial development on economic stability in 28 Asian countries from 2010 to 2023. Using the FGLS method to address the issue of heteroscedasticity in static panel data, the research results indicate that financial development (FD) has a negative impact on the stability of economic growth and inflation stability, possibly due to risks and instabilities in financial markets. In contrast, ICT infrastructure has a strong positive impact, suggesting that investing in ICT can be a crucial strategy to enhance stability and sustainability in economic growth and inflation. However, there is no evidence that ICT infrastructure affects exchange rate stability in Asian countries.