The Role of Media Institutions in Economic Growth: Evidence From a Panel of Developing Countries

ABSTRACT Over the past two decades, the internet has become a crucial driver of development, contributing to productivity gains in many countries. However, despite its growing significance, there is a substantial gap in research about the impact of media quality and accessibility on economic growth. The previous research focused on high‐income countries, often lacking theoretical depth and key control variables. The current study uses freedom on the net indicator and internet penetration data, from 2013 to 2023, to estimate how they both affect economic growth in 15 emerging economies. The analysis implements a dynamic panel regression originating from a modified Cobb–Douglas production function. Using the panel General Method of Moments and panel Granger causality tests, the findings reveal a positive impact of Internet penetration on economic growth, indicating that an increase in the number of Internet users correlates with stronger economic performance. Additionally, there is a positive association between internet freedom and economic growth, suggesting that countries with higher levels of internet freedom and less censorship experience more robust economic growth. The results are significant for policymakers since they signify the importance of their efforts to enhance access to the internet as this strategy can increase transparency bringing down government expenditure and corruption. At the same time, the findings point out the need for highly educated people in terms of online safety measures, as well as their higher responsibility to safeguard vulnerable citizens from mis and disinformation.