The economic impact of the Internet penetration rate and telecom investments in Arab and Middle Eastern countries

By using a sample of 93 countries and panel data econometrics, we evaluated the impact of the Internet penetration rate and investment in the telecom sector on economic growth in the Arab and Middle East (AME) region over the 1995-2014 period.1 The results show that the Internet has been a significant growth determinant in the AME region, particularly in high-income AME countries; Internet penetration in middle-income AME countries seems to be hovering below the growth impact rate. Telecom investments did not affect growth in the AME region, thus highlighting the general-purpose technology nature of such investments and the adjustment period needed before the latter bear fruits.