DEMOGRAPHIC AND WELFARE RELATED COVARIATES OF MACROECONOMIC PERFORMANCE IN A DIGITAL AGE IN ASIA

Conventional growth models usually overlook the importance of demographic factors as a determinant of growth and their complemen- tarities with other factors. This study develops a model to elucidate the role of demographics and human welfare in Asian countries in explaining the income determination by considering their complementarities with ICT. Sample of Asian countries have been used to analyze this model called as Demo-Tech Income Model. Considerable support is found for this hypothesis using data of selected Asian countries. Referring to Solow's Paradox, a possible explanation is found that emphasizes the importance of favourable demographic features and higher levels of welfare in explaining the 'fuzzy' ICT-income nexus. Demo-Tech income model is suitable for Asian countries that have favourable demographic features, such as higher concentration in urban areas and upright population pyramids. This model can have similar implications for other developing regions with similar demographic patterns and initial stage of ICT diffusion.