Rapid technological advancements and increased connectivity have given rise to a new economic era, where digitalization plays a key role in the economic growth of nations. This article studies the effect of innovation and digitalization on the economic growth of four countries in the North African region, namely, Algeria, Tunisia, Morocco and Egypt over the period 2007 to 2022. Using panel data analysis based on two approaches, panel least squares with a fixed effects regression estimator, and robust ordinary least squares (ROLS), dependence tests, showed that the Innovation and digital transformation have a positive and significant effect on improving the economic growth of our studied sample. However, significant differences exist for each country: it is the ICT development index, which has a significant impact on economic growth in Morocco, while in Tunisia, it is digital investment which contributes the best to economic growth. As for Egypt and Algeria, the results showed that it is rather the degree of innovation in these two countries that has a strong and significant effect on the level of economic growth.

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Analysis of the Relationship Between Innovation, Digitalization and Economic Growth in North African Countries

  • Safa Benazzouz,
  • Hicham Sadok

摘要

Rapid technological advancements and increased connectivity have given rise to a new economic era, where digitalization plays a key role in the economic growth of nations. This article studies the effect of innovation and digitalization on the economic growth of four countries in the North African region, namely, Algeria, Tunisia, Morocco and Egypt over the period 2007 to 2022. Using panel data analysis based on two approaches, panel least squares with a fixed effects regression estimator, and robust ordinary least squares (ROLS), dependence tests, showed that the Innovation and digital transformation have a positive and significant effect on improving the economic growth of our studied sample. However, significant differences exist for each country: it is the ICT development index, which has a significant impact on economic growth in Morocco, while in Tunisia, it is digital investment which contributes the best to economic growth. As for Egypt and Algeria, the results showed that it is rather the degree of innovation in these two countries that has a strong and significant effect on the level of economic growth.