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The use and economic impacts of ICT at the macro-micro levels in the Arab Gulf countries

Listed author(s):
  • Nour, Samia


    (UNU-MERIT, and Faculty of Economic and Social Studies, Khartoum University)

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    In this paper we use some primary micro data from the firm survey of Nour (2002b) and some secondary cross countries data to examine the use and economic impacts of ICT at both the macro-micro levels in the Arab Gulf countries. We find that at the macro and micro levels the demand for ICT (measured by the use and spending on ICT) is characterised by considerable dynamism over time, i.e. shows a dynamic increasing trend across countries, but an opposite decreasing trend across firms. At the macro level the use/demand for ICT increases with income (measured by GDP per capita) and decreases with price. At the micro level, total spending on ICT increases with firm size (capital and labour) and industry level. At the micro level, we find positive correlations between the total spending on ICT, output and profit. At the macro level, spending on ICT as percentage to GDP shows a positive significant correlation with GDP- as an indicator of economic growth - and a positive insignificant correlation with schooling. Therefore, the total spending on ICT shows positive but somewhat inconclusive economic impacts at both micro and macro levels in the Gulf countries.

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    Paper provided by United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT) in its series MERIT Working Papers with number 059.

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    Date of creation: 2011
    Handle: RePEc:unm:unumer:2011059
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    1. Timothy F. Bresnahan & Erik Brynjolfsson & Lorin M. Hitt, 2002. "Information Technology, Workplace Organization, and the Demand for Skilled Labor: Firm-Level Evidence," The Quarterly Journal of Economics, Oxford University Press, vol. 117(1), pages 339-376.
    2. Daron Acemoglu, 1998. "Why Do New Technologies Complement Skills? Directed Technical Change and Wage Inequality," The Quarterly Journal of Economics, Oxford University Press, vol. 113(4), pages 1055-1089.
    3. Joan Muysken & Samia Nour, 2006. "Deficiencies in education and poor prospects for economic growth in the Gulf countries: The case of the UAE," Journal of Development Studies, Taylor & Francis Journals, vol. 42(6), pages 957-980.
    4. Chris Freeman & Luc Soete, 1997. "The Economics of Industrial Innovation, 3rd Edition," MIT Press Books, The MIT Press, edition 3, volume 1, number 0262061953, January.
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