Citations


Contact Us

For Marketing, Sales and Subscriptions Inquiries
2637 E Atlantic Blvd #43110
Pompano Beach, FL 33062
USA

Conference List

The Impact of Social Media on Economic Growth: Empirical Evidence of Facebook, YouTube, Twitter and Pinterest

Prince Asare Vitenu-Sackey

Prince Asare Vitenu-Sackey 1


  1. Jiangsu University, Zhenjiang, P. R. China. 1

Pages: 222-238

DOI: 10.18488/journal.62.2020.74.222.238

Share :

Article History:

Received: 27 February, 2020
Revised: 03 April, 2020
Accepted: 07 May, 2020
Published: 21 May, 2020


Abstract:

The study assessed the impact of social media on economic growth in a global perspective hence the use of 198 countries as sample for the period 2009 - 2017. The study utilised and adopted panel data methodologies such as panel corrected standard errors, two-stage least square and panel quantile regression methods for its regression analysis. The study’s theoretical basis was on the endogenous growth model. The findings of the study support the two hypothesis that exist between social media and economic growth nexus. In relevance, the study concludes that social media has both positive and negative impact on economic growth perhaps fixed broadband, number of internet users and secure internet servers are the major drivers of social media. In particular, the study found that Facebook and Pinterest negatively affect economic growth as this finding is in support of the second hypothesis of social media and economic growth nexus. The positive relationship finding supports the first hypothesis that the abolishment of barriers to entry to enable users of social media to publish and disseminate information without any limitations with the support of proper and efficient internet and broadband supply then social media could positively affect economic growth because the multiplicity of media such as wikis, blogs, pictures, videos etc. to a large extent propel the potential of social media in relation to dissemination of information and knowledge whereas ensuring a multi-channel diffusion and codification of knowledge as YouTube and Twitter showed positive and significant impact on economic growth.
Contribution/ Originality
This study contributes in the sparse literature on the nexus between social media and economic growth specifically the individual effects of social media platforms. The study’s focus was on Facebook, Twitter, YouTube and Pinterest. However, the endogenous growth theory or model was used as the study’s theoretical basis.

Keywords:

Social Media, Economic growth, Facebook, YouTube, Twitter, Pinterest.

Reference:

Beck, N., & Katz, J. N. (1995). What to do (and Not to Do) with time-series cross-section data. American Political Science Review, 89(3), 634–647.Available at: https://doi.org/10.2307/2082979.

Berger, A. N., & Di Patti, E. B. (2006). Capital structure and firm performance: A new approach to testing agency theory and an application to the banking industry. Journal of Banking and Finance, 30(4), 1065-1102.Available at: https://doi.org/10.1016/j.jbankfin.2005.05.015.

Cheng, C., Ren, X., & Wang, Z. (2019). The impact of renewable energy and innovation on carbon emissions: An empirical analysis for OECD countries. Energy Procedia, 158, 3506 – 3512.Available at: https://10.1016/j.egypro.2019.01.919.

Czernich, N., Falck, O., Kretschmer, T., & Woessmann, L. (2011). Broadband infrastructure and economic growth. The Economic Journal, 12(552), 505–532.Available at: https://doi.org/10.1111/j.1468-0297.2011.02420.x.

Dell'Anno, R., Rayna, T., & Solomon, H. (2016). Impact of social media on economic growth - evidence from social media Applied Economics Letters, 23(9), 633-636.Available at: https://dx.doi.org/10.1080/13504851.2015.1095992.

Koenker, R., & Bassett, J. G. (1978). Regression quantiles. Econometrica, 46(1), 33-50.Available at: https://doi.org/10.2307/1913643.

Koenker, R. (2004). Quantile regression for longitudinal data. Journal of Multivariate Analysis, 91(1), 74 -89.

Lamarche, C. (2011). Measuring the incentives to learn in Colombia using new quantile regression approaches. Journal of Development Economics, 96(2), 278-288.Available at: https://doi.org/10.1016/j.jdeveco.2010.10.003.

Ortiz-Ospina, E. (2019). The rise of social media. Retrieved from: https://ourworldindata.org/rise-of-social-media

Rayna, T., & Striukova, L. (2010). Web 2.0 is cheap: Supply exceeds demand. Prometheus, 28(3), 267–285.Available at: https://doi.org/10.1080/08109028.2010.522332.

Statcounter. (2020). Social media statistics. Retrieved from: https://gs.statcounter.com/social-media-stats.

Tarek, A.-K. L. S., Raihan, S. M. Z., & Duasa, J. (2014). The relationship between capital structure and performance of Islamic banks. Journal of Islamic Accounting and Business Research, 5(2), 158–181.Available at: https://doi.org/10.1108/JIABR‐04‐2012‐0024.

Zhu, H., Duan, L., Guo, Y., & Yu, K. (2016). The effects of FDI, economic growth and energy consumption on carbon emissions in ASEAN-5: Evidence from panel quantile regression. Economic Modelling, 58, 237-248.Available at: https://doi.org/10.1016/j.econmod.2016.05.003.

Statistics:

Google Scholor ideas Microsoft Academic Search bing Google Scholor

Funding:

This study received no specific financial support.

Competing Interests:

The author declares that there are no conflicts of interests regarding the publication of this paper.

Acknowledgement:


Related Article

( 1 ) Impact of Labour, Capital and Human Resources in Productivity of Transport Firms in Nigeria
( 2 ) The Impact of Investment Climate Reforms on the Development of Small and Medium Sized Enterprises in Nigeria: A Policy Brief
( 3 ) The Impact of Human Capital on Economic Growth: Evidence from Tunisia Using Star and Stecm Models
( 4 ) Impact of Food Beverage Price Index and Exchange Rate Volatility on Economic Growth
( 5 ) Impact of Microfinance Lending On Economic Growth of Third world Nations: Study of Nigeria
( 6 ) The Impact of Rice Production, Consumption and Importation in Nigeria: The Political Economy Perspectives
( 7 ) The Impact of Dividend Policy on Shareholders’ Wealth before and After Financial Melt down: Evidence from FMCG Sector in India
( 8 ) Factors Impacting on SMEs Internationalization: Dairy Industry in Zimbabwe
( 9 ) The Life-Time of Tomorrow Party of Japan and Its Negative Impacts on the Anti-Nuclear Movements in Japan’s Politics
( 10 ) An Assessment of the Impact of Information Communication Technology (ICT) On the Administration of Public Records: A Case Study of the Bolgatanga Municipal Assembly in the Upper East Region of Ghana-West Africa
( 11 ) Impact of Inflation on Per Capita Income in Emerging Economies: Evidence from BRICS Nations
( 12 ) The Impact of the Global Financial Crisis on the Debt, Liquidity, Growth, and Volume of Companies in Palestine Stock Exchange
( 13 ) The Impact of the Decline in Oil Prices in Latin America
( 14 ) Measuring the Quality of Islamic Banks Services and Its Impact on Customers Satisfaction A Survey Study on the Islamic Banks Customers in Lattakia-Syria
( 15 ) The Indirect Impact of Overconfidence on the Performance of Tunisian Firms Through their Financing Structure
( 16 ) Impact of FDI on Environmental Quality of China
( 17 ) Panel Data Analysis of the Impact of Economic Freedom as Well as Economic Conditions, The Quality of Life, and Public Education Spending on U.S. Undocumented Immigrant Settlement Patterns
( 18 ) The Role of Social Entrepreneurship in Pakistan and its Impact on Economy
( 19 ) Scenario Economic Impact Analysis of Offshore Fishing Tournaments in Ocean City
( 20 ) Impact of Telecommunications Market Liberalization on Labor Productivity in Economic Community of West African States
( 21 ) Impact of Participatory Decision Making on Organisational Goal Attainment
( 22 ) The Impact of Organisational Culture on Public Sector Performance: A Case Study of Local Authorities in Zimbabwe
( 23 ) An Empirical Assessment of the Impact of Access to Credit on Farm Output: A Case Study of Sefwi-Wiawso Municipality Ghana
( 24 ) An Investigation of the Impact of Organisational Structure on Organisational Performance
( 25 ) Impact of Exchange Rate Fluctuation on Selected Economic Sectors of the Nigerian Economy
( 26 ) Impact of Asymmetric Government Spending on Real Balances Demand
( 27 ) Investigating the Impact of Business Alignment on Job Gratification in an Organization: The Case of a University in Egypt
( 28 ) Impact of Network Finance Development on Inflation: Evidence from Chinese Market
( 29 ) The Impact of Military Spending on Economic Wellbeing in Nigeria
( 30 ) Determinant of MSMEs Performance and its Impact on Province GRDP in Indonesia
( 31 ) Determinants of Financial Performance and its Impact on the Growth of Islamic Bank Assets on Indonesia
( 32 ) The Impact of Land Price Movements on the Properties in Croatia
( 33 ) The Impact of Social Media on Economic Growth: Empirical Evidence of Facebook, YouTube, Twitter and Pinterest
( 34 ) The Impact of Economic Growth, Oil Price, and Financial Globalization Uncertainty on Financial Development: Evidence from Selected Leading African Countries
( 35 ) The Climate Change Menace, Food Security, Livelihoods and Social Safety in Northern Ghana
( 36 ) Social Sustainability of High-Rise Buildings
( 37 ) Social Security; A Public Policy for Good Governance in Nigeria: The Role of Nigerian Legislature
( 38 ) Promoting Local Acceptability of International Oil Companies (IOCS) Through Corporate Social Responsibility (CSR): The Case of Tullow Oil in Ghana
( 39 ) The Wider Vision of Social Policy: Exploring the Ways of Curbing Violence against Women in Four Wards of Shamva North Constituency (Zimbabwe)
( 40 ) The Investment Performance of Socially Responsible Investment in Japan
( 41 ) Relevance of Stakeholders Theory, Organizational Identity Theory and Social Exchange Theory to Corporate Social Responsibility and Employees Performance in the Commercial Banks in Nigeria
( 42 ) Analyzing Factors Affecting the Success of Social Media Posts for B2b Networks: A Fractional-Factorial Design Approach
( 43 ) Effects of Corporate Social Responsibility on Banks Financial Performance in Nigeria: A Study of United Bank of Africa
( 44 ) Social Protection Programmes, Agricultural Production and Youth Employment in Nigeria: Analysis from LSMS-ISA
( 46 ) Social Protection and Agricultural Production in ECOWAS: The Youth Unemployment Question
( 47 ) Financial Market Predictions with Factorization Machines: Trading the Opening Hour Based on Overnight Social Media Data
( 48 ) Does Social Barriers Influence Women's Intention toward Entrepreneurship?
( 49 ) The Effect of Corporate Social Responsibility Disclosure on Corporate Financial Performance
( 50 ) Perceived Poverty and Alleviation Efforts of Kogi State Community and Social Development Agencies in Kogi State: An Empirical Investigation
( 51 ) The Role of Social Security Program for Enhancing Seniors Longevity
( 52 ) Productive Welfare Policy: An Innovative Way in Social Safety Net in Malaysia
( 54 ) Influence Internship Learning Effect in Business Service Sector: Using Internship Self-Efficacy as the Mediator Variable
( 55 ) The Mediating Effect of Market Orientation on the Relationship between Entrepreneurial Orientation Dimensions and Organizational Performance: A Study on Banks in Libya
( 56 ) Confirming the Mediation Effect of A Structural Model By Using Bootstrap Approach: A Case Study of Malaysian 8th Grade Students’ Mathematics Achievement
( 57 ) Effect of Media Transportation and Advertising Transportation on Customers Responsiveness
( 60 ) Foreign Direct Investment - Growth Linkage in Sub-Saharan Africa: Is Governance a Mediating Factor?
( 61 ) The Mediating Effect of Financial Self-Efficacy on the Financial Literacy-Behavior Relationship: A Case of Generation Y Professionals
( 63 ) Consideration the Relationship Between Information Communications Technology and Economic Growth in Top 10 Economic
( 64 ) Shifting Global Economic Paradigm
( 65 ) How Telecommunication Development Aids Economic Growth: Evidence from Itu Ict Development Index (IDI) Top Five Countries for African Region
( 66 ) The Prospects of Accounting and Economic Systems in the Era of Global Knowledge Economy
( 67 ) Labor and Economic Growth in Zimbabwe
( 69 ) Exchange Rate Movements, Import And Economic Growth in Nigeria (1986-2010)
( 71 ) Long-Run Relationships and Causality Tests Between Military Expenditure and Economic Growth in India
( 72 ) Public Infrastructure Spending and Economic Growth in Nigeria: An Error Correction Mechanism (ECM) Approach
( 73 ) Study of the Relationship between Economic Growth and Inflation: Application to the Countries of the South Side of the Mediterranean: A Panel Data Approach
( 74 ) The Entrepreneurship, Knowledge Spillover and Economic Growth
( 75 ) Corruption’s and Democracy’s Effects on Economic Growth
( 76 ) Relationships between Financial Development and Economic Growth: A New Approach by Inputs
( 78 ) The Role of Information and Communication Technology in Rural Socio-Economic Development in Africa
( 79 ) Dividend Policy Relevancy in Theoretical and Practical Economics
( 80 ) Consideration the Effects of Water Sector Investment on Economic Growth in Iran
( 81 ) Is Brics a Viable Solution for Russia in the Context of the Present Eu’s Economic Sanctions?
( 82 ) Stock Market Performance and Economic Growth: Evidence from Nigeria Employing Vector Error Correction Model Framework
( 83 ) Rural Saving Mobilizations and Economic Development in Akamkpa Local Government Area of Cross River State - Nigeria
( 84 ) Nigerian Politics, Economic Development, and the Role of Human Rights Organisations on Elections
( 85 ) Rural - Urban Balance as a Measure of Socio-Economic Development with Special Reference to Iran
( 86 ) Causal Relationship between Imports and Economic Growth in Zimbabwe: An Empirical Analysis 1975 – 2013
( 87 ) The Effect of Access and Quality of Education on Economic Development in Botswana
( 89 ) Dynamics of Inflation, Economic Growth, Money Supply and Exchange Rate in India: Evidence from Multivariate Analysis
( 90 ) Structural Breaks, Electricity Generation and Economic Growth in Nigeria
( 91 ) Comparative Analysis of the Effectiveness of Coub-Douglas, Real Business Cycle, and Keynsian Growth Models in Determining Economic Growth in Nigeria
( 92 ) The Link Between Agricultural Budgetary Allocation and Economic Growth in Nigeria
( 93 ) Financial Deepening, Interest Rate Spread and Economic Growth: New Evidence from Sub-Sahara Africa
( 94 ) China Pakistan Economic Corridor (CPEC): Analysis of Internal and External Challenges
( 95 ) A Case Study of Local Government Implementation of the Ward Based Local Economic Development (LED) Program
( 96 ) Military Regimes and Nigeria’s Economic Development, 1966-1999
( 97 ) An Investigation of the Relationship between Manufacturing Output and Economic Growth : Evidence from Nigerias Data Set
( 99 ) Macroeconomic Indicators and Capital Formation Growth in Nigeria: A New Evidence
( 100 ) An Empirical Investigation into the Key Drivers of Economic Performance in the CEMAC Zone: A Panel Corrected Standard Errors Approach
( 101 ) Disaggregated Foreign Capital Inflows and Economic Growth in a Developing Economy: Empirical Evidence from Nigeria
( 103 ) Assessment of Dual Carriageway for Sustainable Socio-Economic Development in Ado Ekiti, Nigeria
( 104 ) Industrialization and Economic Growth in Sub-Saharan Africa: The Role of Human Capital in Structural Transformation
( 105 ) Does Agricultural Sector Contribute to the Economic Growth in Case of Republic of Benin?
( 106 ) Uncertainties in Global Economic Policy and Nigerias Export Earnings
( 107 ) Public Health Expenditure, Economic Growth and Health Outcomes in Nigeria
( 108 ) External Debt and Economic Growth: Two-Step System GMM Evidence for Sub-Saharan Africa Countries
( 110 ) The Colonialists & Indigenous Exchange Currency: Tracing the Genesis of Socioeconomic Woes in Postcolonial Nigeria
( 111 ) The Transitional Relationship between Economic Growth and Exchange Rate in Ghana: An Empirical Approach
( 112 ) Estimating the Economic Determinants of Technical Efficiency of Bioenergy in EU-28: An Application of Tobit Analysis
( 114 ) The Relationship between Financial Development, Economic Growth, and Inflation: Evidence from Southeast Asia
( 115 ) German Exports, Economic Growth and Foreign Demand: An Analysis of the Period 2000–2017
( 116 ) Does External Borrowing Affect Economic Growth? A Revisit of the Age-Long Debate for Nigeria
( 117 ) Nexus between Non-Oil Sectoral Contribution and Economic Growth in Nigeria 1981-2018
( 118 ) Management of The CFA Franc: What are the Fundamentals of the Real Exchange Rate in West African Economic and Monetary Union (WAEMU)?
( 119 ) Investigating the Environmental Effects of Economic Growth in African Economies
( 120 ) Analysis of Causal Nexus between Defense Spending and Economic Growth in Nigeria: A Toda-Yamamoto Approach
( 123 ) The Effects of Macroeconomic Variables on Bank Default: A Case Study in Brazil
( 131 ) Driving Role of Institutional Investors in the Indian Stock Market in Short and Long-Run – An Empirical Study
( 132 ) Just-In-Time: Review of Empirical Studies
( 133 ) The Effect of Selected Financial Ratios on Profitability: An Empirical Analysis of Listed Firms of Cement Sector in Saudi Arabia
( 134 ) An Empirical Test on Effect of Intra-Product Trade on Regional Income Distribution: The Case of Liaoning, China
( 136 ) The Internal Branding Process: Customer Reprofiling and Brand Positioning (Empirical Study on Traditional Snack Food in Bandung-Indonesia)
( 137 ) Managerial Judgement Versus Financial Techniques in Strategic Investment Decisions: An Empirical Study on the Syrian Coastal Region Firms
( 138 ) Empirical Evidence on Municipal Tax Policy and Firm Growth
( 139 ) The Effect of Public Debt on Domestic Product and Unemployment (An Empirical Study on the Palestinian Economy)
( 140 ) Does the Holiday Effect Differ from Religious to Non-Religious Holidays? Empirical Evidence from Egypt
( 141 ) What Drives Banking Stability? Empirical Evidence from ECOWAS Countries