The Impact Of Information And Communication Technology On Economic Growth In Mena Countries

This paper aims to test jointly two economic puzzles: the effect of financial development and Information and Communication Technology (ICT) on economic growth. Theories predict a positive effect of financial development and ICT on growth but empirical studies on these relationships produced mixed results. Further, we investigate the interaction between financial development and ICT Diffusion to test whether the impact of financial development on growth is strengthened by better ICT infrastructure. In this paper we assess empirically these relationships in some MENA countries. The empirical study is based on estimation of a dynamic panel model with system GMM estimators. There are three main findings. First, our empirical results join empirical literature that find a negative direct effect of financial development on economic growth. This ambiguous relationship may be linked to many phenomenons but there aren't yet clear explanations of this puzzle. Second, the estimates reveal a positive and significant direct effect of ICT proxies on economic growth. This implies that MENA countries need to reinforce their ICT policies and improve using of new Information and Communication Technology. Finally, the interaction between ICT penetration and financial development is found positive and significant in the growth regression. This implies that economies in Mena region can benefit from financial development only once a threshold of ICT development is reached.

We examine the impacts of Information and Communications Technology (ICT) usage and ICT investment on economic growth in 16 MENA countries throughout 1995-2018. We also investigate the moderating role of the quality of national governance on the association between ICT usage, ICT investment, and economic growth. Applying the panel ARDL method, the results suggest that ICT usage plays a significant role in contributing to higher economic growth, whereas ICT investment does not have a direct impact on economic growth. In addition, we find that improvements in the quality of governance increase the effectiveness of ICT usage and investment on economic growth. Our results are of importance for policymakers interested in improving the effectiveness of ICT's contribution to economic growth.

The argument that digitalization fosters economic activity has been strengthened by the global COVID-19 pandemic. Because digital technologies are general-purpose technologies that are usable across a wide variety of economic activities, the gains from achieving universal coverage of digital services are likely to be large and shared throughout each economy. However, the Middle East and North Africa region suffers from a “digital paradox†?: the region’s population uses social media more than expected for its level of gross domestic product (GDP) per capita but uses the internet or other digital tools to make payments less than expected. The Upside of Digital for the Middle East and North Africa: How Digital Technology Adoption Can Accelerate Growth and Create Jobs presents evidence that the socioeconomic gains of digitalizing the economies of the region are huge: GDP per capita could rise by more than 40 percent; manufacturing revenue per unit of factors of production could increase by 37 percent; employment in manufacturing could rise by 7 percent; tourist arrivals could rise by 70 percent, creating jobs in the hospitality sector; long-term unemployment rates could fall to negligible levels; and female labor force participation could double to more than 40 percent. To reap these gains, universal access to digital services is crucial, as is their widespread use for economic purposes. The book explores how fast the region could approach universal coverage, whether targeting the rollout of digital infrastructure services makes a difference, and what is needed to increase the use of digital payment tools. The authors find that targeting underserved populations and areas can accelerate the achievement of universal access, while fostering competition and improving the functioning of financial and telecommunications sectors can encourage the adoption of digital technologies. In addition, building societal trust in the government and in related institutions such as banks and financial services is critical for fostering the increased use of digital payment tools.

This book makes an important contribution to business, economic growth, and information and communication technologies led technical change literature. Evidence based on primary survey of firms, comes from firms located in three Continents, namely; Asia, Africa, and Latin America. Using advanced statistical and econometric techniques, the studies presented in the book have been able to capture the factors that are impediments in the adoption of new technologies. Findings presented in the book conclude that institutional support is necessary factor for small firms to remain competitive in the era of globalization. Case studies presented in the book suggest that entrepreneurship coupled with enabling technological and institutional environment can make small firms globally competitive. Cohesion of policies has been found essential for sustainability of growth and survival of small firms. We also conclude that degree of effectiveness of same policy instruments is not uniform across countries. Hence countries need to evolve their own country-specific policies for small firms so that they can survive in the globally integrated world.

The existing telecommunications infrastructure in the Middle East and North Africa MENA suffers from various regulatory and market bottlenecks that are hampering the growth of the Internet in most countries and related access to information and to potential new job sources.

ICTs in Developing Countries is a collection of conceptual and empirical works on the adoption and impacts of ICT use in developing societies. Bringing together a wide range of disciplines and contributors, it offers a rich examination of digital divide and ICT for development both in terms of contextual information and disciplinary perspectives.

This paper studies the impact of information and communication technologies (ICT), especially mobile phone rollout, on economic growth in a sample of African countries from 1988 to 2007. Further, we investigate whether financial inclusion is one of the channels through which mobile phone development influences economic growth. In estimating the impact of ICT on economic growth, we use a wide range of ICT indicators, including mobile and fixed telephone penetration rates and the cost of local calls. We address any endogeneity issues by using the System Generalized Method of Moment (GMM) estimator. Financial inclusion is captured by variables measuring access to financial services, such as the number of deposits or loans per head, compiled by Beck, Demirguc-Kunt, and Martinez Peria (2007) and the Consultative Group to Assist the Poor (CGAP, 2009). The results confirm that ICT, including mobile phone development, contribute significantly to economic growth in African countries. Part of the positive effect of mobile phone penetration on growth comes from greater financial inclusion. At the same time, the development of mobile phones consolidates the impact of financial inclusion on economic growth, especially in countries where mobile financial services take hold.

In recent years, the Middle East's information and communications landscape has changed dramatically. Increasingly, states, businesses, and citizens are capitalizing on the opportunities offered by new information technologies, the fast pace of digitization, and enhanced connectivity. These changes are far from turning Middle Eastern nations into network societies, but their impact is significant. The growing adoption of a wide variety of information technologies and new media platforms in everyday life has given rise to complex dynamics that beg for a better understanding. Digital Middle East sheds a critical light on continuing changes that are closely intertwined with the adoption of information and communication technologies in the region. Drawing on case studies from throughout the Middle East, the contributors explore how these digital transformations are playing out in the social, cultural, political, and economic spheres, exposing the various disjunctions and discordances that have marked the advent of the digital Middle East.

The Middle East and North Africa (MENA) is an economically diverse region. Despite undertaking economic reforms in many countries, and having considerable success in avoiding crises and achieving macroeconomic stability, the region’s economic performance in the past 30 years has been below potential. This paper takes stock of the region’s relatively weak performance, explores the reasons for this out come, and proposes an agenda for urgent reforms.