The paper 'Contribution of Technology and Communication to Economic Growth' is a great example of a Macro and Microeconomics Literature Review. This chapter introduces the review of the research study; it focuses on past studies that have already been undertaken on the factors affecting management in the modern economy. The information in the literature review is obtained from past reference materials like magazines, newspaper articles, and other published materials. This will contribute towards broadening the scope of the research study and drawing a comparison on what factors were previously investigated. The research objectives explored in this paper include, to determine the contribution of technology and communication to economic growth, to investigate the impact of population growth to the economic growth, to determine the impact strategic decision making towards improving the economic growth and to investigate how technology and connectivity affect the economic growth. Contribution of technology and communication to economic growth Technology is a body of knowledge which is applied in practical ways through manufacturing, modifications, and process used by humans.
Communication on the other hand is the process through which purposeful information is exchanged from one person to the other in order to gain some objective.
The combination of these two words means that it is the passing of scientific knowledge for the purpose of development. In the recent past, economic performance in the world has been middling. The new economy and productivity have been attributed to a number of factors with computer technology being at the forefront with the greatest contribution. From the mechanization of the industrial revolution to the computer-driven revolution in the present economic change. In the 1970s less than three percent of the total population in the world didn’ t have access to phones and the internet.
Today, technology has advanced and more than two-thirds are able to access the internet. Technology today is seen as the primary mechanism of A number of studies done in the past have suggested several reasons for the contribution of technology on the economy today. According to (lades & David, 2000) the surge of productivity in the united states in the nineteen nighties has been contributed by the adoption of new technologies. (online, Stephen D & Daniel E Sichel, 2000) Concluded that, information technology has contributed to an estimate of half of the increase in productivity in the United States.
The pressures which have been attributed by the versatile emerging markets have stimulated an era of innovation and growth which can only be catered by the introduction of technology. In the business sector, information technology accounts for over one-third of the increase in productivity. (Jorgenson, Dale W, and Kevin Sirah, 1999) Concluded that the united stated economic growth has increased immensely to an approximate of one percent increase per year due to information technology.
For example, computer technology enhances the accuracy, speed, and responsiveness of operations in the business sector increasing the efficiency hence increase in productivity. Information technology works as the facilitator of innovations (Brynjolfsson, Erik, and Lorin M. Hitt, 2000). It complements the changes in all aspects of the organization. Information technology takes into account the network externalities. for this to be effective, a large number of people and organizations make an investment in connection and integrate their data together to achieve mutual benefits. Network technologies are only exploited when information is shared rapidly, effectively, and efficiently.
This on the other requires literacy on technological, analytical, and problem-solving awareness. Information technology cannot work alone but must be accompanied by a number of factors to make it worthwhile. In order to be fully productive, information technology should be accompanied by investments of human capital, especially at the technical level. Economic growth brought about by the investment in technology has worked best in the organizations that have decentralized their investments to a great flexibility and labor relations.
Information contribution has been noticed in companies that exercise vertical integration. Connectivity through mobile phones or through the internet has given rise to an increase in the sharing of market information, financial services, health services to all parts of the world whether in the remote areas or in the urban areas, changing the standard of living. In the modern platform increasing the economic growth
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