Does ICT maturity catalyse economic development? Evidence from a panel data estimation approach in OECD countries

To date, definitions of information and communication technology (ICT) development used in quantitative studies on the relationship between economic development and ICT are incomplete and often based on single indicators. Thus, this study investigates the link between ICT maturity and economic development in the Organisation of Economic Cooperation and Development (OECD) countries. A novel composite index of ICT maturity that includes previously neglected dimensions of ICT maturity, such as affordability and quality of internet connectivity, is utilised. The baseline estimations using the feasible generalised least squares indicate that ICT maturity is associated with an increase in economic development by 1%-3.8% in OECD countries. These findings have been cross-validated by applying the generalised method of moments estimation. Results imply that the holistic development of ICT, including infrastructure, skills, and affordability, can augment economic development.