Modelling Information and Communications Technology Cyber Security Externalities Spillover Effects on Sustainable Economic Growth

This study aims to model information and communications technology (ICT) cybersecurity negative externalities spillover effects on sustainable economic growth. Three productivity frameworks and models were developed to measure ICT cybersecurity negative externalities spillover effects on sustainable economic growth. An econometric and growth account combined model was developed to estimate the explanatory variables. The involved coefficients have been estimated to cast reservation on growth account approach results produced that ignored variables’ parameter estimation that reveals the consistency of the results produced in the first step. On the other hand, in the second step, the modified model calculates productivity indicators ignored by econometric approach studies. The doubt on the results generated by both approaches has been overcame via developing the combined models into two steps growth accounting approach that provides parametric solutions and econometric approach gap that has been filled in the second step that calculates productivity indicators. The most significant contribution of this study is treating ICT cybersecurity’s negative externality spillover effects similar to the negative externalities generated by pollutants’ emissions and developing capital productivity framework and model that were unnoticed in most of the studies.