ICT and growth in MENA countries : what are the involved transmission channels?

This study assesses the impact of information and communication technologies on growth for a sample composed of 14 MENA countries. We also investigate various transmission channels of this effect using the difference GMM estimator to control for endogeneity. Estimation results show that the Internet use contributes significantly to promote growth. Investment and human capital are the main involved transmission channels. The positive relationship between ICT and growth is however nonlinear. The intensity of this relationship is higher in countries investing massively in ICT infrastructure. The results also suggest that ICT substitute for control of corruption in the MENA countries.