The Effect of Information and Communication Technology on Economic Growth

1.Abdulmula Lusta,2.Nagmi Aimer


Evaluating the sources of economic growth is obviously important, and numerous attempts have been made to judge the impact of many factors on economic growth. Since some empirical studies have reported that information technology (IT) is one of the important factors in economic growth, this paper explores the impact of ICT on the economic growth of nine Arab countries (United Arab Emirates, Jordan, Bahrain, Algeria, Saudi Arabia, Tunisia, Lebanon, Morocco, and Oman) during the period 1997-2015. To achieve the objective of the study, a methodology was used to mix time series data with a (Panel data Approach) model by applying Fixed Effects Model (FEM) and Random Effects Model (REM). The results of the study showed that ICT has a positive statistical impact on economic growth. This means that increased Internet usage is leading to increased GDP growth. In order to increase GDP growth, Arab governments should continue to invest in ICT for their positive impact on economic growth.