The Impact of Information and Communication Technologies on Competitiveness: Evidence from MENA Countries

Abstract

Information and communication technologies (ICTs) have recently emerged as a snowballing phenomenon that orient competitiveness strategies. They are vital and critical aspect for countries to not only improve their global competitiveness, but they also accomplish long-term growth. Latest developments in the Middle East and North African (MENA) countries render the region to be an appealing case study. This study aims at investigating the impact of ICTs in supporting the competitiveness in a sample of (13) countries in the MENA region during the period from 2010 to 2021. To accomplish this purpose, the study employs an econometric model that utilizes the dynamic Generalized Method of Moments (GMM) estimator. Moreover, the results are confirmed by implementing two models. The first model measured ICTs by an indicator which is networked readiness index (NRI). The second model measured ICTs by individuals using the internet (IUI) and the competitiveness in both models was measured by global competitiveness index (GCI). The findings indicated that networked readiness index (NRI) and individuals using the internet (IUI) have a significant and positive impact on the competitiveness in MENA countries. The study recommended that countries in the MENA region should inevitably accelerate the procedures of developing ICTs and support the ICT infrastructure in order to increase their competitiveness.