Internet-growth nexus: evidence from cross-country panel data

Abstract

The article investigates the causal relationships between internet, economic growth, government expenditure and inflation in 34 OECD countries during the period 1990 to 2010. Using panel co-integration, empirical results show that they are co-integrated. Moreover, there exists bidirectional causality between internet and economic growth, inflation and economic growth and inflation and internet.

Keywords:

• internet
• growth
• panel co-integration
• panel granger causality

JEL Classification:

• J48
• C32
• G38