This study investigates how digital technology usage affects economic growth in lower- and upper-middle-income countries, focusing on Egypt over 2019–2024. Using the Networked Readiness Index (NRI) usage pillars in an augmented Solow dynamic panel framework, the analysis shows that household ICT adoption (indivnet) is the main driver of real GDP per capita, with results robust to endogeneity and cointegration diagnostics. The growth effect is particularly pronounced in lower-middle-income economies, such as Egypt, where a 10% increase in digital uptake is associated with sizeable gains in income per capita. Long-run estimates indicate a stable equilibrium relationship between digital usage and physical capital, supporting the view that digitalization complements traditional growth inputs rather than replacing them. These findings underscore the importance of expanding broadband infrastructure and investing in digital skills to accelerate Egypt’s convergence and provide a practical roadmap for broader middle income digital transformation.
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