The rapid diffusion of ICT is becoming an important determinant of national economic growth. This paper examines the relationship between ICT development and economic growth in Tunisia using a sectoral analysis. We use the common correlated effect mean group (CCEMG) and augmented mean group (AMG) methods and annual panel data from 1997 to 2017 to examine the relationship between ICT diffusion and economic growth in Tunisia. Our sectoral analysis shows that the impact of ICT on value added is heterogeneous across sectors and provides three main findings:

• First, in some sectors, such as financial services, transport, construction, hotels and restaurants, and other market services, ICT has a positive and significant impact on value added. These sectors benefit from the use of ICT.
• Second, in some sectors, such as distributive trades and various manufacturing industries, ICT has a negative and significant impact on value added. These sectors need to be well organised and well managed to avoid the dominance of informality.
• Third, in some sectors, such as public administration, there is a productivity paradox and despite huge investments in ICT, they have no impact on value added due to the lack of deep organisational change.