The Role of Information and Communication Technology (ICT) and FDIon South African Economic Growth

Information, communication, technology (ICT) and foreign direct investment plays a substantial role in various spheres of social and economic development. Therefore, changes in these variables can significantly impact a country's economy. The current study aims to assess the implication of information and communication technology (ICT) and FDI on South African economic growth. To achieve this objective, the autoregressive distributed lag (ARDL) model and Error Correction Model (ECM) were applied to time series data over the period 1991 to 2021. Findings obtained from econometric modelling and analysis indicate that besides the positive effect of FDI on South African economic growth, all the analysed components of ICT namely mobile phone subscriptions, fixed phones, and internet subscriptions are drivers of economic growth in South Africa. Based on the findings, from the policy perspective, it was suggested that South African economic authorities increase and improve investment in the ICT infrastructure while also attracting more foreign investors. Additionally, to benefit from FDI and ICT's drivers of economics, policymakers should endorse policies and strategies that enhance economic openness and the ICT's resource allocation.