The Role of Broadband Usage and Telecommunications Competition in Driving Economic Growth and Labour Productivity: A Comparative Regional Analysis of MENA and Europe

This study compares the impact of using fixed and mobile broadband services and competition in the telecommunications sector on economic growth and labour productivity across 20 countries in Europe and the MENA (Middle East and North Africa) region from 2015 to 2021. Broadband usage is measured by the amount of data consumed, while sector competition is assessed using the ICT regulatory tracker index. Two econometric models were employed and applied to two samples: Group A (European countries) and Group B (MENA countries). The results show that broadband use has positive and significant impacts on economic growth and labour productivity in the two groups, but the effect in the European countries was higher. However, the study also finds that competition in the telecommunications sector produces divergent results between the two groups. The study recommends adopting policies to enhance the deployment and affordability of fixed and mobile broadband usage and services. Additionally, since competition serves as a catalyst for broadband usage, enhancing competition in the telecommunications sector is also advised.