The Impact of Information and Telecommunication Technologies on Growth in Czech republic

Information and telecommunication technologies are always joint with economic growth in modern economies, because they participate on reduction of transaction costs and increase production factors productivity and competitiveness. Benefits from ICT had been obvious untill 2001, but right after the investmens and expenditure in ICT started to decrease rapidly. There are studies capturing this drop in developed economies, whereas there are not many works considering the situation in center and eastern Europe. This master thesis brings an analysis of impact of ICT capital and production factors productivity on gross value added by growth accounting methodology in Czech Republic between 1996-2007. It also provides econometric testing of the impact of investments in ICT equipment and software on gross value added in Czech Republic between 1993-2013 by fixed effects model. The output of the master thesis demonstrates the empirical evidence of significant negative impact year-by-year change investment in ICT equipment and software on a change of growth pace of gross value added