The impact of ICT capital growth on economic growth: the case of Egypt

Hoda Mansour ()
Additional contact information
Hoda Mansour: University of Business and Technology, College of Business Administration, Jeddah, Saudi Arabia

Zbornik radova Ekonomskog fakulteta u Rijeci/Proceedings of Rijeka Faculty of Economics, 2022, vol. 40, issue 2, 375-394

Abstract: Capital investments in information and communication technology (ICT) have been a major contributor to the growth of several developed countries. In an attempt to boost their economies, some emerging and developing countries have been following a similar path, in which they heavily invest in the sector of ICT. However, due to other factors, ICT capital growth may not always produce the desired economic outcome. The purpose of this study is to estimate the impact of capital growth in ICT on economic growth in one developing country, Egypt, which has been heavily investing in the sector of ICT. The study analyses time series data covering the period from 1999 to 2019 using an error correction model. The findings demonstrate that there is no long-term positive association between ICT capital growth and economic growth in Egypt. While the development of ICT provides the potential for Egypt to achieve sustained economic growth, the significance and size of these impacts are currently negligible. The study concluds that in order to benefit from capital investments in ICT, policymakers should enact high-quality investment policies and improve the overall quality of the surrounding environment, such as the regulatory and institutional environments, in addition to controlling inflation and government consumption.

Keywords: economic growth; ICT; capital growth; digital economy (search for similar items in EconPapers)
JEL-codes: E22 O14 O33 O47 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.efri.uniri.hr/upload/03-Mansour-2022-2.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:rfe:zbefri:v:40:y:2022:i:2:p:375-394

Access Statistics for this article

More articles in Zbornik radova Ekonomskog fakulteta u Rijeci/Proceedings of Rijeka Faculty of Economics from University of Rijeka, Faculty of Economics and Business Contact information at EDIRC.
Bibliographic data for series maintained by Danijela Ujcic ().