Impact of ICT Diffusion on the Economic Growth and Its Volatility: A Case Study on African and MENA Countries

  • Mohamed Bouhari
  • Yamina Mathlouthi
Keywords: Information and Communication Technologies (ICT), growth, volatility, S-GMM


In this paper, we examine the empirical relationship between ICT diffusion and the interaction between economic growth and its volatility for 30 African and MENA countries between 1998 and 2020. To achieve this, we calculated the interaction between mean growth and its fluctuations over different non-overlapping intervals (3 years) using inverse hyperbolic sine calculations. A composite ICT indicator was used, including access to ICT, capacity to use ICT and ICT-related skills. Using the S-GMM technique that addresses multiple econometric questions, the results show that ICT penetration has a statistically negative effect on the interaction of growth and its turnover. This means that higher ICT penetration may lead to slower and more volatile growth.

However, by introducing an interaction variable (defined as the base level of GDP multiplied by the ICT development index), the estimates reveal that these variables have a statistically positive effect on the interaction between growth and its volatility. When ICT diffusion interacts with a country's level of economic development, it can have a positive impact on economic growth and its volatility. The results show that the impact of ICT diffusion depends on the specific characteristics of a country, especially its level of economic development. In particular, the marginal effects of ICT are significant for high-income countries.


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How to Cite
Bouhari, M., & Mathlouthi, Y. (2023). Impact of ICT Diffusion on the Economic Growth and Its Volatility: A Case Study on African and MENA Countries . European Journal of Science, Innovation and Technology, 3(3), 321-342. Retrieved from