Information and Communication Technologies (ICT) and Economic Growth in Latin America: An Empirical Analysis for the 2000-2020 Period

Abstract

Introduction ICTs (Information and Communication Technologies) play a crucial role in improving efficiency and productivity in various economic sectors. The research focuses on measuring the impact of ICTs on the economic growth of Latin American nations during the period 2000-2020. Methods A fixed effects, panel data model covering 17 countries in the region has been applied using ordinary least squares methodology. The variables selected for the empirical exercise are: the number of individuals using the Internet, fixed and mobile telephone subscriptions, trade balance, domestic credit, foreign direct investment and gross domestic product per capita. Results The study’s findings show that ICTs have a positive impact on economic growth. That is, for every percentage point increase in the percentage of the population using the Internet, GDP per capita increases by US$16.82. Conclusion This highlights the unique influence exerted by digital connectivity in shaping the regional economic landscape. At the same time, mobile and fixed telephone subscriptions are not significant variables in the model.