Institutional quality and infrastructure as catalyst to the effects of ICT on provincial total factor productivity

Purpose This study aims to explore the impact of information and communication technology (ICT), institutional quality and infrastructure on provincial growth in Vietnam besides investigating the moderating role of provincial competitiveness in the relationship between ICT and provincial growth. Design/methodology/approach Using a dynamic panel data approach with the generalized method of moments (GMM) estimator, this study investigates the impact of ICT, institutional quality and infrastructure on provincial total factor productivity (TFP) in Vietnam from 2010 to 2022. Findings The findings confirm that ICT plays a crucial role in boosting TFP, emphasizing the significance of digital transformation in enhancing productivity. In addition, strong governance and strategic infrastructure investments contribute positively to TFP. Notably, interaction analyses suggest that provinces with better governance and more developed infrastructure experience greater productivity benefits from ICT. Practical implications These insights provide valuable policy recommendations for emerging economies, underscoring the importance of integrated strategies that foster ICT development, strengthen institutional frameworks and enhance infrastructure to achieve sustainable economic growth. Originality/value To the best of the authors’ knowledge, this study should be among the first to contribute to the literature on the knowledge economy by offering empirical evidence on the interaction between ICT and institutional quality in shaping regional growth in emerging economies.