Economic Growth in the Age of Artificial Intelligence: An Empirical Analysis with a Dynamic Generalized Method of Moments

Document Type : RESEARCH PAPER

Authors

1 Faculty of Humanities, Ayatollah Boroujerdi University, Boroujerd, Iran.

2 Department of Economics, Faculty of Humanities, Ayatollah Boroujerdi University, Boroujerd, Iran

Abstract

This study aims to examine the effect of artificial intelligence on countries' economic growth using a panel generalized method of moments (GMM) approach. In this regard, panel data from leading countries in the field of artificial intelligence from 2017 to 2023 have been utilized. The estimation of the dynamic panel model shows that artificial intelligence growth has a positive and significant effect on economic growth. In other words, increased investment in AI activities has led to accelerated GDP growth in the countries under study. On the other hand, the positive interaction between AI growth and labor productivity indicates that the impact of artificial intelligence is strengthened in the presence of higher productivity. Based on the findings, leveraging AI technology can enhance countries' economic growth through improving total factor productivity and other channels of innovation and investment. Additionally, the positive interaction between AI growth and human capital also confirms that artificial intelligence has a greater intensity of impact in the presence of higher human capital. The results of this study confirm the transformative role of artificial intelligence in the economy and demonstrate the necessity of attention to policies for maximum and comprehensive utilization of AI capabilities.

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References

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Stable Economy Journal
Volume 6, Issue 4 - Serial Number 20
December 2025
Pages 109-134

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