Effects of ICT Investment and Usage on Economic Growth in MENA Countries: Does Governance Matter?

This study examines the impact of ICT usage and investment on economic growth in 16 MENA countries from 1995 to 2018. Furthermore, this study examines how national governance affects the relationship between ICT usage, investment, and economic growth. Using the panel ARDL method, the results show that ICT usage contributes significantly to higher economic growth, but ICT investment has no direct impact. We also find that better governance increases the impact of ICT usage and investment on economic growth. This study’s findings are critical for policymakers seeking to improve ICT's contribution to economic growth.