This study investigates whether information and communication technology (ICT) constitutes a sustained driver of economic growth in four Central Asian economies—Kazakhstan, Kyrgyzstan, Tajikistan, and Uzbekistan—over the period 2000–2022. Using an extended endogenous growth framework, this study employs the following long-run growth model: economic growth is specified as a function of ICT development, gross capital formation, trade openness, human capital, government effectiveness, and inflation. A composite ICT index is constructed using Principal Component Analysis (PCA). Long-run relationships are examined using a panel cointegration approach, and long-run elasticities are estimated using FMOLS, DOLS, and CCR techniques. The results reveal that ICT development exerts a negative and statistically significant effect on economic growth in the long run, indicating limited technological absorptive capacity and insufficient institutional readiness in the region. In contrast, capital formation, trade openness, human capital, and government effectiveness positively and significantly promote growth, while inflation hampers economic performance. The findings suggest that ICT investment alone is insufficient for sustainable growth without complementary institutional strengthening, human capital development, digital skills enhancement, improved broadband quality, and governance reforms to increase the productive use of ICT.

This study examines the role of governance and institutional quality in shaping FDI inflows across twelve South and Central Asian economies from 2002 to 2023. The analysis incorporates key macroeconomic determinants, including trade openness, economic growth, population, inflation, six governance dimensions, and a composite institutional quality index constructed through principal component analysis. Driscoll–Kraay standard errors, Feasible Generalized Least Squares (FGLS), and Method of Moments Quantile Regression (MMQR) techniques are employed to capture heterogeneity and distributional effects. The findings show that trade openness, economic growth, and population consistently stimulate FDI inflows, whereas inflation discourages foreign investment. More importantly, the study reveals a counterintuitive institutional effect: stricter governance mechanisms-including stronger rule of law, regulatory quality, and anti-corruption measures-can temporarily constrain FDI inflows by increasing compliance costs, administrative complexity, and adjustment burdens for foreign investors in transitional economies. This suggests that institutional strengthening operates as a double-edged process, promoting long-term economic credibility while potentially discouraging short-term foreign capital inflows. The study therefore highlights the importance of balancing institutional reforms with procedural efficiency and investor-friendly implementation strategies in South and Central Asia.