Economic Freedom as a Driver of ICT Service Exports

This paper examines whether economic freedom, as measured by the Index of Economic Freedom, has a positive and time-lagged impact on the share of ICT services exports in total service exports, and whether this effect corresponds to a regression coefficient of at least 0,20 per additional score point. The study is based on a dynamic panel data model according to Arellano-Bond using international secondary data, which maps time-delayed effects over up to ten years. The results show time-delayed effects: For lag 1 (ß = 0,827; p = 0,014) and lag 3 (ß = 0,418; p = 0,032), there is a positive and statistically significant influence that exceeds the required minimum coefficient. The remaining calculated lags are predominantly positive, but not statistically significant. The study thus confirms the hypothesis: an increase in economic freedom by one score point leads to a time-delayed increase in the share of ICT service exports. The result underscore the importance of open, constitutionally stable, and economically free framework conditions for the international competitiveness of digital service sectors and is therefore also relevant to economic policy.