ICT Penetration and Human Development: Empirical Evidence from the EU Transition Economies

Human development is one of the essential factors behind sustainable development in the globalizing world. Hence, the factors underlying human development are crucial to designing and implementing optimal policies to boost national economic growth. This study explores the influence of ICT penetration on human development in 11 transition economies of the EU between 1996 and 2021 through causality and cointegration tests. The results of causality test reveal that ICT penetration represented by the use of the internet and mobile cellular subscriptions has a significant influence on human development in the short term. Furthermore, the results of cointegration test also point out that ICT penetration indicators have a positive influence on human development in the long term. As a result, ICT penetration can be employed as a useful instrument to improve human development regarding its possible negative environmental effects.