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<p>This study aims to investigate the influence of the Internet on labor productivity for a panel of 20 Middle East and North Africa (MENA) countries, by using panel cointegration approach and annual data extracted from World Bank database (WDI), and the International Telecommunication Union (ITU) during the period from 2000 to 2020. Our findings comply with expectations within the dynamic panel data models. Specifically, labor productivity has a significantly positive response to changes in Internet use over both the long and short run, albeit the effect is weak. This result is not contingent upon only one econometric procedure, supporting the view that information and communication technology (ICT) does not allow for substantial improvements in labor productivity for the given set of economies. Furthermore, the auxiliary variables are found to affect labor productivity significantly. Based on the empirical analysis, authorities may undertake appropriate policies to increase efficiency in Internet use to boost labor productivity. The added value of this study lies in the absence of any previous empirical evidence on the issue in the MENA region and the more robust technical setting of our study compared to prior works, thereby leading to reliable and conclusive results.</p>

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Sensitivity of Labor Productivity to Internet Use: The Case of MENA Countries

  • 期刊论文

  • 发表日期：

    2025年6月18日

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  • Nizar Harrathi,
  • Mofleh Ali Alshogeathri

摘要

This study aims to investigate the influence of the Internet on labor productivity for a panel of 20 Middle East and North Africa (MENA) countries, by using panel cointegration approach and annual data extracted from World Bank database (WDI), and the International Telecommunication Union (ITU) during the period from 2000 to 2020. Our findings comply with expectations within the dynamic panel data models. Specifically, labor productivity has a significantly positive response to changes in Internet use over both the long and short run, albeit the effect is weak. This result is not contingent upon only one econometric procedure, supporting the view that information and communication technology (ICT) does not allow for substantial improvements in labor productivity for the given set of economies. Furthermore, the auxiliary variables are found to affect labor productivity significantly. Based on the empirical analysis, authorities may undertake appropriate policies to increase efficiency in Internet use to boost labor productivity. The added value of this study lies in the absence of any previous empirical evidence on the issue in the MENA region and the more robust technical setting of our study compared to prior works, thereby leading to reliable and conclusive results.