The interaction between economic digitalization and economic growth in MENA region

Abstract

This study analyses the influence of economic digitalization on economic growth in MENA region. We applied a system GMM estimator on a sample composed of 15 MENA countries from the period of 2012 to 2016. We used the Networked Readiness Index (NRI) to capture the economic digitalization. The results show that the digitalization is positively associated with economic growth. All the NRI sub-indexes variables seem to be positively significant; however, skills and education variables are not significant. This study recommends the MENA governments to invest more in ICT, especially in ICT human capital to enhance economic growth in the region, and use efficiently labor force when adopting the frontier technology.