Technology gap: Information and communication technology trade and sustainability issues in India

Abstract

This chapter extends the authors' previous research work in which an examination of causality was conducted between foreign direct investment (FDI), economic growth (GDP), and the environment (CO2 emissions and energy consumption [EC]) in the Indian context. Two more important variables (i.e., trade openness and technology gap) were also added. The chapter further examines the effects of information and communication technology (ICT) trade on both GDP and the environment of India. The results of previous model show that FDI is neither causing GDP nor is it bridging the technology gap. The results also indicate the existence of pollution haven hypothesis (PHH) in India as FDI is causing both CO2 and EC. Also, FDI is, though not causing the GDP directly, doing so indirectly through CO2 validating the existence of PHH. FDI is causing trade openness in India, but that openness is again causing more FDI, which is doing no good for India. The results of ICT trade model indicate that both GDP and ICT exports cause CO2 in India. Also, both the GDP and ICT exports are consuming energy in India. © 2022 by IGI Global. All rights reserved.