The use and economic impacts of ICT at the macro-micro levels in the Arab Gulf countries

In this paper we use some primary micro data from the firm survey of Nour (2002b) and some secondary cross countries data to examine the use and economic impacts of ICT at both the macro-micro levels in the Arab Gulf countries. We find that at the macro and micro levels the demand for ICT (measured by the use and spending on ICT) is characterised by considerable dynamism over time, i.e. shows a dynamic increasing trend across countries, but an opposite decreasing trend across firms. At the macro level the use/demand for ICT increases with income (measured by GDP per capita) and decreases with price. At the micro level, total spending on ICT increases with firm size (capital and labour) and industry level. At the micro level, we find positive correlations between the total spending on ICT, output and profit. At the macro level, spending on ICT as percentage to GDP shows a positive significant correlation with GDP- as an indicator of economic growth - and a positive insignificant correlation with schooling. Therefore, the total spending on ICT shows positive but somewhat inconclusive economic impacts at both micro and macro levels in the Gulf countries.