Digital Transformation and Economic Growth in MENA Countries
This article studies the link between digital transformation and economic growth in a panel of 7 Middle East and North Africa (MENA) countries, namely Tunisia, Morocco, Algeria, Egypt, Oman, Qatar and and United Arab Emirates over the 2008-2021 period. Using the generalized method of moment (GMM) estimator for linear dynamic panel data models, we find a positive relation between digital transformation and economic growth in MENA countries. The policy suggestions in this study advocate a global approach and seizing opportunities for industry to leverage digitalization, integrate it into the world of work, and provide a sound understanding of digital infrastructure, which will improve economic performance in the digital economy era. Furthermore, the findings provide policymakers with a basis for better formulating policies aimed at achieving the Sustainable Development Goals.
Keywords: Digitalization development, Economic growth, Dynamic panel data analysis
JEL Classification: F63, F43, C23
