Information and Communication Technology (ICT), Energy Volatility, and Output Volatility Nexus: A Global Panel Data Analysis

Abstract

The current research contributes to the literature by evaluating the influence of Information and Communication Technology (ICT), energy volatility, and output volatility on global economies over the time period 1971-2020. The analysis was based on panel dataset for 154 nations. For empirical analysis, the study used pooled OLS, fixed effects, and random effects models including 2SLS and GMM methods. Moreover, to ensure the stability of the findings, the study ran a series of robustness analyses. The results suggested that ICT mitigates economic instability and output volatility. Energy use volatility, on the other hand, yielded considerable positive and statistically significant outcomes and augmented output volatility. This study provides important policy recommendations for implementing ICT-enabled technologies. Moreover, it is advised that the government should promote ICT technologies which result in lower volatility and protracted development of the economy.