THE IMPLICATION OF DIGITAL TECHNOLOGY ON SAUDI ARABIA’S ECONOMIC GROWTH

Abstract

In contemporary times, the integration of digital technology has emerged as a pivotal factor in determining the prosperity of organisations and the consequent attainment of robust economic growth. The attention of recent studies and regulators is required by this particular aspect. Therefore, this study aims to examine the influence of digital technology proxies, such as high technology exports, access to clean fuel and technologies, and medium and high technology exports, on the economic growth (EG) of Saudi Arabia. The study additionally incorporated two control variables, namely inflation and population growth, to assess their impact on the economic growth (EG). The data utilised in this study was obtained from the World Development Indicators (WDI) spanning the years 1991 to 2022. The study also utilised the dynamic autoregressive distributed lag (DARDL) model to examine the relationship between variables. The results of the analysis revealed a positive correlation between the economic growth of Saudi Arabia and several factors, including high technology exports, access to clean fuel and technologies, medium and high technology exports, inflation, and population growth. The study provides guidance to policymakers in formulating policies aimed at enhancing economic growth through the utilisation of efficient digital technologies.