The Impact of Investment in the Transfer of Information and Communication Technology on the Growth of Per Capita Gross Domestic Product in Algeria during the Period (1990–2025)

Abstract

The study aimed to measure the impact of the transfer of information and communication technology (ICT) on supporting per capita gross domestic product growth (GROWTH_GDPC) in Algeria during the period extending from 1990 to 2025. The study sought to answer the problem of the extent to which digitalization and technological flows contribute to enhancing levels of economic welfare and sustainable growth. An econometric model was constructed expressing the relationship between expenditure on the acquisition and transfer of information and communication technology as an independent variable, and per capita gross domestic product growth as a dependent variable using the ARDL model. The study found the existence of a cointegration relationship (a long-term equilibrium relationship) and the ability of the Algerian economy to correct deviations and return to equilibrium with an adjustment speed reaching 63.6% annually. It also found a positive and statistically significant effect of investment in technology on growth in the short term, where the elasticity of growth with respect to investment reached 1.65, while the long-term effect was positive but lacked statistical significance, which indicates the existence of a “productivity paradox” in the Algerian economy.

Accordingly, the study recommends increasing expenditure allocations for technology projects, acquiring and transferring them to industrial and service activities that would improve the individual’s standard of living and provide fertile ground for the growth and development of production, providing research centers for acquiring modern technological techniques used in information and communication, and the necessity of moving from investment in pure technological infrastructure to the digital empowerment of production sectors, with the necessity of intensive investment in human capital to ensure transforming technological leaps into sustainable long-term growth.