Determinant Factors of Smart Cities: The Case of MENA Countries

Abstract

This study seeks to explore determinant factors in smart cities using a sample of 13 countries from the Middle East and North Africa region (MENA) during the period from 2012 to 2018. The study suggests five determinant factors in smart cities namely, infrastructure; macroeconomic environment; health and education; technological readiness and innovation. These factors are measured using data collected from the Global Competitiveness Report over seven years from 2012 to 2018. To examine significant effects and causal relations between the five factors in smart cities, the study has conducted the path analysis. Two models with different paths are employed. The first has three paths among them one is not significant at the common levels of significance. The second model has four paths which all are statistically significant. Findings of the study reveal that the infrastructure and economy based on smart technology positively affect other factors (the education & health and innovation). In addition, the results demonstrate a high effect of technology readiness and macroeconomic environment as determinant factors in smart cities on other factors namely, health and education and innovation. To the best of the authors knowledge, this is the first study on smart cities conducted in MENA countries to employ path analysis as a unique technique.