Digitalization and Economic Growth in Arab Countries Under Good Governance during (2018-2021)

Document Type : Original Article

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Associate Professor, Faculty of Economics and Political Science, Cairo University

Abstract

This paper explores the relationship between economic growth, the digital economy, and governance in Arab countries, investigating whether effective governance amplifies the positive impact of digitalization on economic expansion. Through a panel data analysis covering 2018-2021, significant and favourable connections between economic growth, the digital economy, and governance quality are revealed. The study highlights digitalization's pivotal role in fostering economic growth and emphasizes the need for investments in digital infrastructure and innovation. Additionally, it underscores the crucial link between economic growth and effective governance, suggesting that transparent decision-making and efficient resource allocation enhance the benefits of digital initiatives for economic development. The findings advocate for policymakers to prioritize enhancing digital readiness and governance frameworks, fostering innovation and equitable access to technology, ultimately paving the way for sustained and inclusive economic growth in Arab countries.

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