The relationship between information and communication technologies and economic growth: Panel data analysis on G7 countries

Some globally prominent sectors are known to have a significant impact on the economic growth of countries. Among these sectors, the impact of the Information and Communication Technology (ICT) sector on economic growth has become more evident since the early 21st century. In recent years, ICT has been recognized as a key driver of economic growth. This study analyzes the impact of ICT on economic growth using data from G7 countries for the period 2000–2021. Gross domestic product (GDP) per capita based on purchasing power parity was used as the indicator of economic growth, while the ICT indicators included the proportion of internet users in the population and the share of ICT service exports in total service exports. The study, using data from G7 countries, applied panel data analysis methods, including cross-sectional dependence, unit root, homogeneity, and cointegration tests. Long-term cointegration coefficients were estimated using the Augmented Mean Group (AMG) estimator. The results of the analysis revealed that the significance and direction of the impact of ICT indicators on economic growth varied across countries.