Artificial intelligence (AI) innovation and economic growth: asymmetric analysis and role of stock market, financial stability and trade openness

Peterson Ozili

MPRA Paper from University Library of Munich, Germany

Abstract: This study examines the asymmetric effect of artificial intelligence (AI) innovation on economic growth in 50 countries from 2000 to 2020 using the quantile regression method. The findings reveal that AI innovation stimulates economic growth at low and middle tail of the economic growth distribution. Interaction analyses reveal that the use of AI innovation in the stock market stimulates economic growth while the use of AI innovation to support financial stability and international trade activities diminish economic growth. Asymmetric interaction analyses reveal that: AI innovation stimulates economic growth when countries are experiencing low growth rates; the use of AI innovation in the stock market stimulates economic growth when countries are experiencing high growth rates and in mid-growth emerging market and developing countries; the use of AI innovation to support financial stability activities diminish economic growth when countries are experiencing low growth rates and the use of AI innovation to support international trade activities diminish economic growth when countries are experiencing high growth rates.

Keywords: Quantile regression; asymmetry; economic growth; artificial intelligence; innovation; internet; financial stability; unemployment; trade openness; endogenous growth theory (search for similar items in EconPapers)
JEL-codes: O30 O31 O33 O47 (search for similar items in EconPapers)
Date: 2026
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