Economic Growth and the Development of Telecommunications Infrastructure

Theoretical increase in the use of information technology has led to economic growth, and a strong network is a prerequisite for increasing economic growth, and also in recent years, the transformation of has played an important role in the country's economic growth and development. This paper examines the linkages between the development of telecommunications infrastructure, economic growth.

To investigate the matter, used four key indicators of operation of a macroeconomy variables: gross capital formation, foreign direct investment inflows, urbanization rates, and trade openness. By studying the MENA countries over the period 1990–2016 and employing a panel vector auto-regressive model for estimating.

Findings:

 Unexpectedly it finds the results indicate that the development of telecommunication infrastructure has a negative effect on economic growth, and economic growth has a positive and significant effect on the development of telecommunication infrastructure.

The impact of developing telecommunications infrastructure on economic growth is not significant, so policy changes need to be made. If we want to develop telecommunications infrastructure to economic growth, we need to change the relevant policies in this area.