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Does Social Media Contribute to Economic Growth?

Author

Listed:
  • Jacques Simon Song

    (University of Dschang, ACEDA)

  • Georges Ngnouwal Eloundou

    (ACEDA, LAREFA, University of Dschang)

  • Fabrice Bitoto Ewolo

    (ACEDA, LAREFA, University of Dschang)

  • Blaise Ondoua Beyene

    (ACEDA, LAREFA, University of Dschang)

Abstract

This paper assesses the effects of social media on economic growth in a sample of 177 countries. The originality of the article lies in highlighting the direct and indirect effects of social media externalities on the process of economic growth. Unlike existing works, we study this nexus from a global perspective using a cross-sectional model. To achieve this, we specify and estimate a panel data model using ordinary least squares (OLS) methods over the period 2012–2019. The robustness of the results has been proven by using Poisson pseudo maximum likehood (PPML) and the quantile regression (QR). The results show that social media as measured by Facebook penetration improves economic growth. Furthermore, the results of the mediation analysis show that the effect of social media on the economic growth is mediated by financial development, human capital, information and communication technologies (ICT), electricity consumption, and political stability. We suggest, in addition to the quantitative and qualitative strengthening of the telecommunication infrastructure, a rational use of social media for a better consolidation of economic growth.

Suggested Citation

  • Jacques Simon Song & Georges Ngnouwal Eloundou & Fabrice Bitoto Ewolo & Blaise Ondoua Beyene, 2024. "Does Social Media Contribute to Economic Growth?," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 15(2), pages 8349-8389, June.
  • Handle: RePEc:spr:jknowl:v:15:y:2024:i:2:d:10.1007_s13132-023-01419-1
    DOI: 10.1007/s13132-023-01419-1
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    More about this item

    Keywords

    Economic growth; OLS; Social media; PPML;
    All these keywords.

    JEL classification:

    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • L82 - Industrial Organization - - Industry Studies: Services - - - Entertainment; Media
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General

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