An Exploratory Study of the Causality between Internet Use, Innovation, and Economic Growth in Tunisia: An indispensable Case Analysis

Abstract

In line with the exogenous and endogenous theory coupled with the seminal Schumpeterian contribution, we attempt to investigate the impact of the use of internet and innovation on economic growth in the case of the Tunisian economy. For this purpose, we employ the ARDL bounds testing methodology over the period 1985-2018. In the short-run, our empirical facts outline the absence of a significant effect of innovation on economic growth. Also, our empirical findings reported that the internet stimulates economic growth. However, in the long-run, our empirical findings pointed out the presence of the negative impact of the innovation and the use of internet on economic growth. Moreover, our results show a significant positive impact of the internet and economic growth on innovation in the long-run. Finally, our results show a negative impact of economic growth on the use of the internet. However, the results display a significant positive impact of innovation on the use of the internet. From these perspectives, the Tunisian authorities should take seriously the innovation and the potential of the use of the internet which can help the economy to be modernized, diversified, and robust to create new jobs and to find new markets and new strategic partners, and new opportunities.

Keywords

• innovation
• use of the internet
• economic growth
• ardl bounds testing.