ICT and growth gap between nations: Evidence from MENA region

Abstract

The purpose of this paper is to examine the role played by ICT in explaining the dynamics of inequality between the MENA countries and OECD during the 2000s. To do this, we formalize an original model of cumulative growth with four simultaneous equations. As a result, we note three interesting findings. Firstly, ICT investment had an important role in increasing the revenue inequality between the MENA region and OCDE. Secondly, the cumulative and mutual causality relationship between ICT investment and growth rate is apparent. Thirdly, the interaction between human capital and ICT investment can be considered as an important canal which allows the inequality reduction for the MENA countries.