The impact of economic growth on cybersecurity: Evidence from ICT development index

In the contemporary digital era, cybersecurity has emerged as a pivotal concern for individuals, enterprises, and nations alike. Technological advancements, while providing many advantages, have resulted in an increase in cyberattacks, data breaches and cybercrimes. In this context, it is evident that economic growth and the development of technological infrastructure can directly influence the way countries formulate their cybersecurity strategies. The enhancement of ICT infrastructure in response to economic growth can facilitate increased investments in cyber security, thereby fortifying defenses against digital threats. This study investigates the effects of economic growth on cybersecurity. Within the scope of the study, the ICT Development Index (IDI) data, which encompasses 171 countries, was utilized to represent cybersecurity. The findings obtained by using the multidimensional nested panel data analysis method, which provides information on different unit dimensions nested within each other, show that there is a statistically significant and positive relationship between economic growth and IDI. The analysis method, which provides information on countries grouped according to different levels of economic development as well as the country effect, shows that there are larger increases for countries in the low and lower-middle income groups than for countries in the high and upper-middle income groups.