Panel data regression analysis shows a positive link between ICT investment and GDP growth, emphasizing policy importance.
ICT infrastructure development is crucial for economic growth in developing countries like Ethiopia. The study employs a panel data regression model with robust standard errors to analyse the relationship between ICT investment and GDP growth rates over the period -. ICT investments have been positively associated with economic growth, with a significant coefficient of $0.85$ in the regression analysis. The findings suggest that enhancing ICT infrastructure could significantly boost Ethiopia's economic performance. Policy makers should prioritise investment in digital networks and information systems to stimulate economic development.
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Zewdu et al. (2001) studied this question.
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