The use and economic impacts of ICT at the macro-micro levels in the Arab Gulf countries
Samia S. O. M. Nour
#2011-059
In this paper we use some primary micro data from the firm survey of
Nour (2002b) and some secondary cross countries data to examine the use
and economic impacts of ICT at both the macro-micro levels in the Arab
Gulf countries. We find that at the macro and micro levels the demand
for ICT (measured by the use and spending on ICT) is characterised by
considerable dynamism over time, i.e. shows a dynamic increasing trend
across countries, but an opposite decreasing trend across firms. At the
macro level the use/demand for ICT increases with income (measured by
GDP per capita) and decreases with price. At the micro level, total
spending on ICT increases with firm size (capital and labour) and
industry level. At the micro level, we find positive correlations
between the total spending on ICT, output and profit. At the macro
level, spending on ICT as percentage to GDP shows a positive significant
correlation with GDP- as an indicator of economic growth - and a
positive insignificant correlation with schooling. Therefore, the total
spending on ICT shows positive but somewhat inconclusive economic
impacts at both micro and macro levels in the Gulf countries.
Keywords: Use of ICT, ICT market, ICT impacts, Gulf countries.
JEL classification: O3, O30