Abstract

The continuous development of the new-generation Information and Communication Technology (ICT) has drawn increased focus and investment from China. However, will China’s investment in the ICT bring a long-term positive impact on China’s economic growth? Will such impact be changed by any external factors? These questions bear strong significance for the academic cycle and require urgent solutions. Given such concerns, the paper introduced a partial dynamic adjustment model and selected the panel data of China from 2001 to 2016 to study how China’s investment in ICT affected its economic performance. The study found that such investment has significantly promoted the economic growth of China with gradually shortened gap between physical capital and the ICT investment, while human capital still played a vital role in economic growth; there is a mutual and harmonious influence between macrovariable and the speed of adjustment, and only their effective combination can improve economic performance to the maximum extent.

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