Does Social Media Contribute to Economic Growth?

Jacques Simon Song (), Georges Ngnouwal Eloundou (), Fabrice Bitoto Ewolo () and Blaise Ondoua Beyene ()
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Jacques Simon Song: University of Dschang, ACEDA
Georges Ngnouwal Eloundou: ACEDA, LAREFA, University of Dschang
Fabrice Bitoto Ewolo: ACEDA, LAREFA, University of Dschang
Blaise Ondoua Beyene: ACEDA, LAREFA, University of Dschang

Journal of the Knowledge Economy, 2024, vol. 15, issue 2, No 130, 8349-8389

Abstract: Abstract This paper assesses the effects of social media on economic growth in a sample of 177 countries. The originality of the article lies in highlighting the direct and indirect effects of social media externalities on the process of economic growth. Unlike existing works, we study this nexus from a global perspective using a cross-sectional model. To achieve this, we specify and estimate a panel data model using ordinary least squares (OLS) methods over the period 2012–2019. The robustness of the results has been proven by using Poisson pseudo maximum likehood (PPML) and the quantile regression (QR). The results show that social media as measured by Facebook penetration improves economic growth. Furthermore, the results of the mediation analysis show that the effect of social media on the economic growth is mediated by financial development, human capital, information and communication technologies (ICT), electricity consumption, and political stability. We suggest, in addition to the quantitative and qualitative strengthening of the telecommunication infrastructure, a rational use of social media for a better consolidation of economic growth.

Keywords: Economic growth; OLS; Social media; PPML (search for similar items in EconPapers)
JEL-codes: C21 L82 O30 O40 (search for similar items in EconPapers)
Date: 2024
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Citations: View citations in EconPapers (2)

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DOI: 10.1007/s13132-023-01419-1

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