Digital Technologies and Tourism as Drivers of Economic Growth in Europe and Central Asia

Castro, Conceição; Ferreira, Fernanda A.; Nunes, Pedro

Advances in Information and Communication Technologies (ICT) are rapidly transforming the world, promoting social and economic development. At the same time, tourism is one of the fastest growing economic sectors and can play and important role in boosting a country’s economy. This paper aims to analyse the impact of ICT and tourism on economic growth in European and Central Asian countries. The analysis is based on a sample of 42 countries over the period 1995–2018. Using panel data estimation techniques, the results suggest that ICT (a composed index of internet users, fixed broadband and mobile cellular subscriptions) and tourism are important determinants of economic growth. The results also reveal that and increase in the burden caused by non-working people on a nation’s working-age population has adverse effects on economic growth, while urbanization and inflation are insignificant. Promoting technology advancements, ICT diffusion and tourism expansion can foster economic growth.