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Impact of Information and Communication Technology on Economic Growth: Evidence from Developing Countries

College of Business, University of Jeddah, Asfan Road 21595, Saudi Arabia
Author to whom correspondence should be addressed.
Economies 2019, 7(1), 21;
Received: 15 December 2018 / Revised: 19 January 2019 / Accepted: 12 February 2019 / Published: 15 March 2019
(This article belongs to the Special Issue Innovation and Socioeconomic Development)
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The present study aims to evaluate the impact of information and communication technology (ICT) on the economic growth of selected developing countries in the Middle East and North Africa (MENA) region and the Sub-Saharan Africa (SSA) region by using a panel Generalized Method of Moment (GMM) growth model over the period 2007–2016. The results extracted from the econometric model show that except fixed telephone, other information and communication technologies such as mobile phone, Internet usage, and broadband adoption are the main drivers of economic growth in MENA and SSA developing countries over the recent period 2007–2016. In addition, our findings confirm the superiority of MENA countries over SSA countries in the areas of Internet usage and broadband adoption. From a policy perspective, the results suggest that authorities in MENA and SSA countries should increase investments in ICT infrastructure. To benefit from the ICT drivers of economic growth, policymakers should enact several important policies that permit the development of financial sectors, provide a more convenient regulatory and institutional environment, increase economy openness, prioritize the allocation of resources to the development of ICT infrastructure, and contain the negative effects of inflation and government consumption. View Full-Text
Keywords: economic growth; ICT; developing countries; MENA; SSA; panel GMM economic growth; ICT; developing countries; MENA; SSA; panel GMM
This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited (CC BY 4.0).

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Bahrini, R.; Qaffas, A.A. Impact of Information and Communication Technology on Economic Growth: Evidence from Developing Countries. Economies 2019, 7, 21.

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