Dynamic Appertain Between Telecommunication Infrastructure and Economic Growth: Empirical Evidence of OIC Countries

This paper finds a causal relationship between telecommunication infrastructure and economic growth in Organization of Islamic Cooperation (OIC) countries. The analysis considers 56 OIC countries, and data was taken from 2001 to 2019. Telecommunication infrastructure computed from telephone subscribers, mobile cellular subscribers, mobile money accounts, and internet access is the main explanatory variable. We utilized panel data analysis. We utilized fully modified ordinary least squares and dynamic ordinary least squares estimation techniques for long-run estimation. To check the causality between the variables, we use the Granger causality test. The empirical findings elaborate that there is a unidirectional relationship between telephone subscribers, mobile cellular subscribers, mobile money accounts, and economic growth. Similarly, internet users and economic growth have a bidirectional relationship. Our findings indicate that there is a need to constitute integrative policies to improve technology inflow for the growth of the economy. An increase in the telecommunication infrastructure will encourage economic growth and improve the living standards of the masses in OIC countries.