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The purpose of this study is to examine linkages between information and communication technology (ICT) use, the ICT regulatory environment and economic development. Businesses and individuals worldwide are increasingly depending on ICTs to facilitate trade and enhance their standard of living. This trend has sparked the argument that ICTs play a crucial role in driving economic development. However, the rise of ICTs has also led to challenges, including cybercrime, intellectual property violations and cyberwarfare, prompting questions about the need for regulation. In spite of these pressing issues, there is a notable lack of empirical research on the relationship between the use of ICTs (by businesses and individuals), their regulation and economic development.

Because of the limited empirical evidence regarding the connections between ICT use, ICT regulations, and economic development, this study aims to explore these relationships. The authors specifically examine the mediating role of ICT regulations in the impact of ICT use on economic development, as well as the direct effects of ICT use on economic development. To achieve this, the authors develop a hypothesised model that is validated using the technology–organisation–environment framework and capability theory. Additionally, the authors analyse secondary data from 130 countries using partial least squares-structural equation modelling.

The findings of this study show that both business and individual use of ICTs positively influences economic development. Furthermore, the authors discovered that ICT regulation plays a positive and partial mediating role in the relationship between ICT use and economic development. To encourage users to continue leveraging ICTs to enhance their livelihoods and foster economic growth, it is essential for governments and policymakers to implement effective ICT regulations that protect users’ information resources from illegal access.

The study’s primary contribution to research is its examination of the relationship between ICT usage by businesses and individuals, ICT regulation, and economic development on a global scale. By using secondary data sources, the study delivers rich, comprehensive, and generalisable findings on how the use of ICTs drives economic development. Additionally, through mediation analysis, the authors demonstrate that the presence of ICT regulations aimed at ensuring online privacy and security enhances both business and individual utilisation of ICTs, thereby promoting economic development.