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The Effect of Information and Communication Technology on Economic Growth: Arab World Case

Author

Listed:
  • Rami Hodrab

    (Department of Economics, Faculty of Economics and Management, Czech University of Life Sciences Prague, Czech Republic)

  • Mansoor Maitah

    (Department of Economics, Faculty of Economics and Management, Czech University of Life Sciences Prague, Czech Republic)

  • Smutka Lubo

    (Department of Economics, Faculty of Economics and Management, Czech University of Life Sciences Prague, Czech Republic)

Abstract

Information and communication technology (ICT), population growth, gross capital formation, openness and inflation are frequently well-thoughtout as important drivers of economic growth in all countries especially for developing ones and so for Arab countries in our case. This paper aims to examine the effect of these factors on 18 selected Arab countries' economic growth during the period from 1995 to 2013. Econometric analysis using panel regression has been adopted to test this impact. Ordinary least square model (OLS), random effects and fixed effects model have been applied for the study sample of 341 observations, and in order to choose the appropriate model, Hausman test has been used. For our analysis we used a basic model that includes the dependent variable gross domestic product per capita as an economic growth factor and the main concerned independent variable info density index that represents the capital and labor stock of ICT. Then we extended the model with other standardized macroeconomic control variables mentioned above and applied the three methodologies of regression. The outcomes illustrate that ICT has positive impact on the selected Arab countries' economic growth as well as the other factors except for inflation which has a negative impact on economic growth for these countries. The impact degree of ICT on economic growth is less than that of other countries especially emerging and developed economists

Suggested Citation

  • Rami Hodrab & Mansoor Maitah & Smutka Lubo, 2016. "The Effect of Information and Communication Technology on Economic Growth: Arab World Case," International Journal of Economics and Financial Issues, Econjournals, vol. 6(2), pages 765-775.
    • Handle: RePEc:eco:journ1:2016-02-53
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    Cited by:

    1. Elena Toader & Bogdan Narcis Firtescu & Angela Roman & Sorin Gabriel Anton, 2018. "Impact of Information and Communication Technology Infrastructure on Economic Growth: An Empirical Assessment for the EU Countries," Sustainability, MDPI, vol. 10(10), pages 1-22, October.
    2. Kemal Temel & Yener Pazarcık, 2022. "The Results of Work Models Applied During the COVID-19 Pandemic," Istanbul Management Journal, Istanbul University Business School, vol. 0(92), pages 1-28, June.
    3. Yang Song & Dayu Liu & Qiaoru Wang, 2021. "The dual-financial-threshold effect in the “club convergence” of economic growth: a dynamic panel threshold model," Empirical Economics, Springer, vol. 61(5), pages 2713-2737, November.
    4. Driouchi, Ahmed & Harkat, Tahar, 2017. "Granger Causality and the Factors underlying the Role of Younger Generations in Economic, Social and Political Changes in Arab Countries," MPRA Paper 77218, University Library of Munich, Germany.
    5. Favour Chidinma Onuoha & Benedict I. Uzoechina & Chukwunenye Ferguson Emekaraonye & Onyinye Ifeoma Ochuba & Nora Francis Inyang, 2023. "Information and communication technologies and sustainable development in ECOWAS subregion: Evidence from a panel cointegration analysis," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 44(2), pages 787-806, March.
    6. Oliinyk Andrii, 2023. "The Impact of Countries’ Participation in the ICT Services Market on Economic Growth, CPI, and Exchange Rates," Economics, Sciendo, vol. 11(1), pages 269-287, June.
    7. Nursel Aydıntuğ Myrvang & Gamze Sart & Marina Danilina & Mohammad A. Ta’Amnha, 2023. "Impact of Market-Oriented Business Environment and ICT on Sustainable Development: Panel Evidence from the New EU Member States," Sustainability, MDPI, vol. 15(19), pages 1-14, September.

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    More about this item

    Keywords

    Information and Communication Technology; Information and Communication Technology Index; Population Growth; Gross Capital Formation; Openness; Inflation; Economic Growth; Arab Countries;
    All these keywords.

    JEL classification:

    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • E22 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Investment; Capital; Intangible Capital; Capacity
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence

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