Crowding-Out Effect of Natural Resources on Domestic Investment: The Importance of Information Communication and Technology (ICT) and Control of Corruption in the Middle East and Central Asia

Countries of the Middle East and Central Asia depend heavily on natural resources for their exports, income, employment. This study is a preliminary investigation that explores effect domestic investment in sample 12 highly resource-dependent countries from 2000 to 2019. The recently advanced cross-sectional dependent auto-regressive distributed lag (CS-ARDL) model panel quantile regression are employed. results validate accelerator theory an increase non-oil GDP growth rate has robust positive impact investment, while crowd-out investment. long-run estimate ICT reveals significant impact, corruption shows negative effect. These findings urge focus developing ICT-based enterprises control prevailing levels. Moreover, adopting liberal trade policies can also enhance opportunities.