Analyzing the Role of Information and Communication Technology in Economic Development Among OIC Nations

Abstract

New growth theories propose that economic growth is significantly influenced by investment in information and communication technology. However, fully empirically verifying this hypothesis remains a challenging task, particularly when examining growth within specific groups of countries, such as the Organization of Islamic Cooperation (OIC) member states. Additionally, the conclusions drawn from research on the causal relationship between information and communication technology and economic growth often vary depending on the research methodology employed. This paper addresses these gaps by employing both dynamic and static panel data approaches within the framework of a growth model, specifically applied to the economies of OIC countries. The study aims to provide robust empirical evidence on the relationship between information and communication technology investment and economic growth in these countries. The analysis reveals that investments in information and communication technology have a significant positive impact on economic growth in the OIC countries considered. These findings underscore the critical role of information and communication technology as a driver of economic development in these nations, suggesting that increased investment in this sector can substantially contribute to their growth trajectories. OIC countries should prioritize the development and implementation of specific policies that promote investment in information and communication technology. Such policies could include incentives for private sector investment, the development of information and communication technology infrastructure, and education and training programs to build a skilled workforce capable of leveraging information and communication technology for economic advancement. This paper contributes to the ongoing discourse on the role of information and communication technology in economic growth by providing empirical evidence from the OIC countries. The findings highlight the importance of information and communication technology as a catalyst for growth and offer actionable insights for policymakers aiming to enhance economic development through targeted information and communication technology investment strategies.