Endogenous growth and the influence of information and communication technology on Poland's economic trajectory.

Abstract

Background: Poland has experienced a significant digital revolution, driven by technological advancements and supportive government initiatives. The increased use and integration of information and communication technology (ICT) have played a crucial role in this transformation. Understanding the economic impacts of these changes is essential, particularly through indicators such as gross fixed capital formation, labour force dynamics, human capital and education, technology/innovation, foreign direct investment (FDI), and ICT infrastructure.

Method: This research employs data spanning 33 years, from 1990 to 2022, to explore the relationship between ICT and economic growth in Poland. The Autoregressive Distributed Lag (ARDL) bounds testing methodology is used to derive empirical results and assess both short- and long-term dynamics.

Results: The findings indicate that ICT, labour, and FDI have a positive and significant impact on Poland's economic growth, with labour exerting the most substantial influence. Conversely, capital investment demonstrates a negative effect on economic growth, likely due to inefficiencies in allocation and diminishing returns in certain sectors.

Conclusion: Based on the results, several key policy recommendations are proposed to further enhance Poland's economic growth. This research also contributes to the macroeconomic theory of endogenous growth by providing new insights into the role of ICT and associated factors in an emerging digital economy.