Analyzing the ICT and economic growth relation in OECD countries

PurposeThis study aims to examine the relationship between information and communication technology (ICT) and economic growth in all organization for economic co-operation and development (OECD) countries.Design/methodology/approachThis paper employs annual panel data together with fixed-effects (FE), random effects (RE), fully modified ordinary least squares (FMOLS), dynamic ordinary least squares (DOLS) and generalized method of moments (GMM) estimators for production function estimation.FindingsThe results indicate that ICTs, non-ICT (NICT) capital services and employment significantly and positively affect economic growth.Practical implicationsInformation is an important driving force behind economic growth and productivity, and communication technologies have made it more accessable. Also, many countries aimed to invest in ICT to improve their economic growth and productivity. However, these investments failed to produce the expected outcome for some years and countries.Originality/valueTo our knowledge, no study examines the ICT and growth relation in all OECD countries for 2000-2018 period. We intend to fill this gap by examining whether or not the expected returns from ICT investment are achieved in all OECD countries between 2000 and 2018.