Does AI Advancement Drive Technology-led Economic Growth? Evidence from a Short Panel.

Kelić, Vasko (2025) Does AI Advancement Drive Technology-led Economic Growth? Evidence from a Short Panel. In: Book of Abstracts: International Scientific Conference “Social Aspects of the Application of Artificial Intelligence and Transhumanism”. Institute of Social Sciences and Institute for Artificial Intelligence Research and Development of Serbia, Belgrade, p. 56. ISBN 978-86-7093-290-6

Text Book of abstracts_Social Aspects of the Application of AI and Transhumanism.pdf - Published Version Available under License Creative Commons Attribution Non-commercial No Derivatives. Download (1MB)

Abstract

Technological development has long been identified as a major engine of economic growth (Aghion & Howitt, 1992; Bravo-Ortega & García- Marín, 2011; Griffith et al., 2004; Jones, 1995; Romer, 1990; Soete et al., 2022; Ulku, 2004). While this effect has held steady since the first two industrial revolutions, the rapid emergence of artificial intelligence (AI) tools over the past decade calls for a fresh investigation into AI’s role in the technology-driven growth. This paper presents an empirical assessment of AI advancement on economic growth using a panel of 38 countries from 2014 to 2019. We employ first differences of log GDP per capita (constant prices, PPP) as the dependent variable and AI patents per million inhabitants as the key explanatory variable. Several model specifications – some with interactions between AI patents and standard technology measures – capture AI’s relative contribution to overall growth. Control variables follow Mirestean and Tsangarides (2009), and country fixed effects address unobserved heterogeneity. Preliminary findings indicate that AI-based technological change exerts a significantly positive effect on growth, suggesting that policymakers should prioritize AI development alongside other technological investments.

Actions (login required)

View Item