ICT AND ECONOMIC GROWTH: EVIDENCE FROM CROSS-COUNTRY GROWTH MODELING

Abstract

The goal of this study is to explore the ICT-growth nexus in the framework of digital economy and innovation as a driver of economic growth across countries and regions. Using data for more than 170 countries over the period 1990-2019, we find that ICT index has positive impact on GDP growth overall. On the other hand, we also find that Internet users, mobile phone users and internet servers have inverted U-shaped association with GDP growth. The results suggest that innovative activities proxied by ICT and digitalization are instrumental for economic growth in the long run.