Effect of artificial intelligence on economic growth in European countries: a symmetric and asymmetric cointegration based on linear and non-linear ARDL approach
Abstract The impact of accelerated advancements in artificial intelligence (AI) on economic development remains a topic of debate in the current era. It is thought by some that AI has the potential to stimulate economic development; however, the precise function of AI remains uncertain. In order to...
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| Language: | English |
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SpringerOpen
2024-12-01
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| Series: | Journal of Economic Structures |
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| Online Access: | https://doi.org/10.1186/s40008-024-00345-y |
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| author | Maha Kalai Hamdi Becha Kamel Helali |
| author_facet | Maha Kalai Hamdi Becha Kamel Helali |
| author_sort | Maha Kalai |
| collection | DOAJ |
| description | Abstract The impact of accelerated advancements in artificial intelligence (AI) on economic development remains a topic of debate in the current era. It is thought by some that AI has the potential to stimulate economic development; however, the precise function of AI remains uncertain. In order to investigate the influence of AI on economic growth in 30 European countries between 2000 and 2021, this study employed both the symmetric (PMG-ARDL) and asymmetric (PMG-NARDL) models. The ARDL model's results suggest that AI has a stimulating effect on economic development. A 0.217% increase in long-term economic growth is associated with an increase in AI. In the NARDL model, the growth of the economy was observed to be increased by 0.026% as a result of positive shocks to the positive AI variable. Conversely, negative shocks were found to have a negative impact, with a decrease of 0.029% in economic growth. It is posited that AI may stimulate economic development by increasing efficiency, promoting economies of scale, enhancing the quality of products and services, and improving working conditions. Furthermore, the study identifies the displacement of employment, the rising costs of training and adaptation, and the expansion of economic and social inequality. To address these challenges, policymakers must facilitate the creation of alternative employment opportunities, promote the development of new AI-driven industries, and implement rehabilitation programs for workers at risk of automation. Balancing technological advancement with job preservation and high-quality employment necessitates a collaborative approach between public and private sectors. |
| format | Article |
| id | doaj-art-7c279a99638347f3b57ca6592538e289 |
| institution | Kabale University |
| issn | 2193-2409 |
| language | English |
| publishDate | 2024-12-01 |
| publisher | SpringerOpen |
| record_format | Article |
| series | Journal of Economic Structures |
| spelling | doaj-art-7c279a99638347f3b57ca6592538e2892025-01-05T12:09:11ZengSpringerOpenJournal of Economic Structures2193-24092024-12-0113113710.1186/s40008-024-00345-yEffect of artificial intelligence on economic growth in European countries: a symmetric and asymmetric cointegration based on linear and non-linear ARDL approachMaha Kalai0Hamdi Becha1Kamel Helali2Faculty of Economics and Management of Sfax, Research Laboratory in Competitiveness, Commercial Decisions and Internationalisation (CODECI), University of SfaxFaculty of Economics and Management of Sfax, Research Laboratory in Competitiveness, Commercial Decisions and Internationalisation (CODECI), University of SfaxFaculty of Economics and Management of Sfax, Research Laboratory in Competitiveness, Commercial Decisions and Internationalisation (CODECI), University of SfaxAbstract The impact of accelerated advancements in artificial intelligence (AI) on economic development remains a topic of debate in the current era. It is thought by some that AI has the potential to stimulate economic development; however, the precise function of AI remains uncertain. In order to investigate the influence of AI on economic growth in 30 European countries between 2000 and 2021, this study employed both the symmetric (PMG-ARDL) and asymmetric (PMG-NARDL) models. The ARDL model's results suggest that AI has a stimulating effect on economic development. A 0.217% increase in long-term economic growth is associated with an increase in AI. In the NARDL model, the growth of the economy was observed to be increased by 0.026% as a result of positive shocks to the positive AI variable. Conversely, negative shocks were found to have a negative impact, with a decrease of 0.029% in economic growth. It is posited that AI may stimulate economic development by increasing efficiency, promoting economies of scale, enhancing the quality of products and services, and improving working conditions. Furthermore, the study identifies the displacement of employment, the rising costs of training and adaptation, and the expansion of economic and social inequality. To address these challenges, policymakers must facilitate the creation of alternative employment opportunities, promote the development of new AI-driven industries, and implement rehabilitation programs for workers at risk of automation. Balancing technological advancement with job preservation and high-quality employment necessitates a collaborative approach between public and private sectors.https://doi.org/10.1186/s40008-024-00345-yArtificial intelligenceEconomic growthPMG-ARDLPMG-NARDL |
| spellingShingle | Maha Kalai Hamdi Becha Kamel Helali Effect of artificial intelligence on economic growth in European countries: a symmetric and asymmetric cointegration based on linear and non-linear ARDL approach Journal of Economic Structures Artificial intelligence Economic growth PMG-ARDL PMG-NARDL |
| title | Effect of artificial intelligence on economic growth in European countries: a symmetric and asymmetric cointegration based on linear and non-linear ARDL approach |
| title_full | Effect of artificial intelligence on economic growth in European countries: a symmetric and asymmetric cointegration based on linear and non-linear ARDL approach |
| title_fullStr | Effect of artificial intelligence on economic growth in European countries: a symmetric and asymmetric cointegration based on linear and non-linear ARDL approach |
| title_full_unstemmed | Effect of artificial intelligence on economic growth in European countries: a symmetric and asymmetric cointegration based on linear and non-linear ARDL approach |
| title_short | Effect of artificial intelligence on economic growth in European countries: a symmetric and asymmetric cointegration based on linear and non-linear ARDL approach |
| title_sort | effect of artificial intelligence on economic growth in european countries a symmetric and asymmetric cointegration based on linear and non linear ardl approach |
| topic | Artificial intelligence Economic growth PMG-ARDL PMG-NARDL |
| url | https://doi.org/10.1186/s40008-024-00345-y |
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