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The Information and Communication Technologies-Economic Growth Nexus in Tunisia: A Cross-Section Dynamic Panel Approach

Mounir Dahmani, Mohamed Mabrouki () and Adel Ben Youssef

No 2021-23, GREDEG Working Papers from Groupe de REcherche en Droit, Economie, Gestion (GREDEG CNRS), Université Côte d'Azur, France

Abstract: The rapid diffusion of information and communication technologies (ICT) is becoming an important determinant of national economic growth. This paper examines the relationship between development of ICT and economic growth in Tunisia based on a sector analysis. We employ the common correlated effect mean group (CCEMG) and augmented mean group (AMG) methods and annual panel data for 1997 to 2017, to study the significant positive relationship between ICT and economic growth in Tunisia. Our sector analysis shows that the effect of ICT on value added is heterogenous depending on the sector of activity and provides three main findings. First, in some sectors such as financial services, transport, building and civil engineering, hotel and restaurant services and other market services ICT have a positive and significant impact on value added. These sectors benefit from use of ICT. Second, in some sectors such as trade and various manufacturing industries, ICT has a negative and significant impact on value added. These sectors need to be well organized and well managed to avoid domination by informalities. Third, in some sectors such as public administration there is a productivity paradox and despite huge investment in ICT they have no impact on value added due to the absence of a deep organizational change.

Keywords: ICT diffusion index; capital; labor; economic growth; Tunisia; dynamic panel; cross-sectional; CCEMG; AMG (search for similar items in EconPapers)
Pages: 34 pages
Date: 2021-05
New Economics Papers: this item is included in nep-ara, nep-ict and nep-tid
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