Examining the relationship of communication service utilisation and productivity of labour in the developing country: A case study of Thailand

It is widely acknowledged that there is a relationship between the use of ICT and economic growth. A number of works of literature point out such fact in the developed country. This study, however, attempts to examine the relationship of the use of ICT and labour productivity, which is one of the factors indicating the economic growth, in the developing country. Thailand is selected for the investigation with the country's data in the period of 1999 - 2010. The ICT is represented by communications consumption and investment throughout the paper. The author presumably proposes a framework in order to verify the relationship in an intuitive way. The quantitative analyses of OLS estimation and the bivariate autoregressive model, or the Granger-causality test, support the validity of the framework and clearly point out the one-way causal relationship flowing from the communications consumption to labour productivity; the communications investment to labour productivity, and the communications consumption to communications investment.