aceArtificial intelligence and economic growth in G20 economies: investigating nonlinear effects through a GMM method
This study investigates the non-linear impact of artificial intelligence (AI) on economic growth in 19 G20 countries, using data from 2005 to 2023 and employing the Generalized Method of Moments (GMM) with both linear and quadratic models. The linear model indicates that AI-related innovation has a positive and significant effect on economic growth, while the negative quadratic term confirms a concave relationship between AI and growth. Regarding the effects of AI interactions with various mechanisms on economic…
In 19 G20 countries from 2005 to 2023, AI-related innovation increased economic growth, with larger gains when paired with financial innovation, trade openness, and government final consumption expenditure.
In the same 19 G20 countries, the relationship between AI and economic growth is concave, indicating diminishing marginal returns as AI intensity rises.
Evidence
- Peer-reviewedHumanities and Social Sciences Communications2026-05-13
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Truvace Impact Record TRV-2026-0139, v1: “Artificial intelligence and economic growth in G20 economies: investigating nonlinear effects through a GMM method.” Truvace, 2026-07-13. /record/TRV-2026-0139 (accessed at citation time). sha256 09781f3d030ead12…
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