Examining the Nexus between ICT Adoption, and Economic Growth in Oman: Jeopardize Environment Sustainability

Abstract

This study evaluated the sustainability of ICT adoption and economic development. The study looked at the ICT indicators that have the effects economic growth. Using a dataset for a period of 1975-2021 of ICT indicators (mobile cellular subscriptions (MCS), fixed broadband subscriptions (FBS), fixed telephone subscriptions (FTS), people using the internet (PUI) and GDP taken from the Oman Telephone Regulatory Authority and the World Bank Data Group. The ICT indicators served as the dependent variable, and GDP was chosen as the independent variable. The study employs unit root test, vector error correction model (VECM), and ARIMA for forecasting. The study revealed that fixed broadband subscriptions (FBS) have a significant positive long-term impact on Oman’s GDP growth. Forecasts predict a steady decline in real GDP growth, turning negative by 2054.The study suggests projected decline in GDP growth without substantial mitigation measures underscores the urgent need for policies that balance economic development.