Do FDI Inflows and ICT Affect Economic Growth? An Evidence from Arab Countries

Abstract

This article aims to examine the dynamic relationships between foreign direct investment inflows, information and communication technologies, and economic growth in a sample of 15 Arab countries over the period 1995–2019 by employing a panel ARDL approach. The results of estimation of the panel ARDL model reveal that ICT and FDI have positive and significant effects on economic growth in the long run, and ICT indicators have also positive impact on FDI inflows in the long run in the selected sample of Arab countries. From an empirical point of view, this study may have an important contribution. Its findings could be very interesting for better future management of ICT in Arab countries. Therefore, the Arab countries should further improve information and communication technology as an important infrastructure for receiving more foreign direct investment inflows and for better economic growth.