Information and communication technology (ICT) infrastructure plays a considerable role in catalysing economic growth, especially in today’s era of internet and mobile telecommunication. Moreover, the causal nexus between ICT infrastructure and economic growth is also reflected by various other macroeconomic factors such as consumer price index, labour force participation rate, and gross fixed capital formation. Accordingly, this study examines the long-run relationships between per capita economic growth, ICT infrastructure, consumer price index, labour force participation rate, and gross fixed capital formation manifest in G-20 countries during 2001-2012. Using panel cointegration, the study finds that the variables are cointegrated and do not drift apart in the long run. Additionally, using both dynamic ordinary least squares (DOLS) and fully modified ordinary least squares (FMOLS), the study finds that ICT infrastructure (broadband and internet) and consumer price index have positive impact on per capita economic growth. Methodology using vector error correction models (VECM) further confirms the presence of long-run causality running from ICT infrastructure (both broadband and internet), consumer price index, labour force participation rate, and gross domestic fixed capital formation to per capita economic growth. However, in the short-run, we have diverse findings. These include ICT infrastructure Granger cause per capita economic growth; consumer price index Granger cause per capita economic growth; labour force participation rate Granger cause per capita economic growth, and gross domestic fixed capital formation Granger cause per capita economic growth. Based on the general results of the study, we suggest two important policy implications. First, to enhance economic growth, ICT infrastructure must be upgraded and expanded, and particular attention should be paid to broadband adoption and internet users. Second, gross domestic capital formation can be considered as the control variable, particularly for labour force participation, in bringing high impact on the ICT infrastructure-economic growth nexus in the G-20 countries.
