Role of Digitalization in High-Technology Exports: A Panel Data Approach for GCC Nations

Abstract

This research asserts that accessibility of new knowledge through information and communication technology (ICT) will prompt high-technological advancement, accompanied by knowledge regarding market dynamics, concurrently driving the growth of high-technology exported goods. The purpose of the study is to investigate the effect of digitalization on the technological sophistication of exports. This study used the ICT development index (IDI), which is a composite index of ICT access, ICT use, and ICT skills to measure digitalization and high-technology exports’ value as the proxy to assess export sophistication. For empirical estimation, we used Panel autoregressive distributed lag approach over the period 2010-2020. The findings reveal that in the GCC nations, IDI index and it’s all separate components have a substantial contribution in boosting high-technology exports. It is recommended that ICT can be a strategic factor for oil dependent nations by concentrating on high-technology sectors since GCC states endeavoring to upsurge high-technology export, should invest more in ICT.