CAUSAL LINKS BETWEEN ICT, HDI, AND ECONOMIC GROWTH: EVIDENCE FROM MENA

Abstract

This paper examines the causal links between ICT, HDI, and economic growth in the MENA region's high-income, middle-income, and low-income countries from 2002 to 2019. These panel data will be studied by using several tests such as the unit root test, Pedroni cointegration test, Kao cointegration test, and ECM test. This link will put a great load on the governments to invest more in both human capital and ICT infrastructure. This policy should be applied in both the short and long run to enhance sustainable growth and development. Therefore 17 countries were chosen from MENA depending on six variables depending on the panel ECM test. This paper ends with the significance of ICT and economic growth in the MENA region in the both short run and long run. Also, this result applies to all countries in the region whether with high-income or middle-income, or low-income countries. Also, these results show some bidirectional or unidirectional between these variables that differ according to the income level of the country.