DOI: 10.3390/economies14110494 ISSN: 2227-7099

Government AI Readiness, Resource Dependence, and Labor Productivity: A Comparative Panel Analysis of 14 Post-Soviet and Comparator Economies, 2021–2024

Eltun Ibrahimov, Surac Bayram, Ilkin Mammadov, Asiman Ilyasov, Aynur Orujlu, Yagub Alizada, Ulvi Rustamli

This paper examines the association between government artificial intelligence (AI) readiness and labor productivity in 14 post-Soviet and comparator economies of the Caucasus, Central Asia, and Central and Eastern Europe over 2021–2024 (56 country-year observations) and asks whether the association differs with resource dependence and institutional quality. We estimate two-way fixed-effects models on World Bank and Oxford Insights data, base inference on a null-imposed wild cluster bootstrap, and assess robustness with leave-one-country-out estimation. Within countries, a one-point increase in the Government AI Readiness Index is associated with 0.32 percent lower labor productivity at the sample-mean oil rent (bootstrap p = 0.013) and 0.40 percent lower productivity at zero oil rents (p = 0.014). The zero-rent association is significant at the 10 percent level in all 14 leave-one-out samples, and the readiness association also holds in the 2021–2023 subsample. The interaction with pre-period (2021) oil rents has a positive point estimate but is only weakly significant (p = 0.085), depends on Azerbaijan and Kazakhstan, and is not robust. We find no significant variation with government effectiveness. The estimates are associations with government readiness, not causal effects of AI use; they are consistent with, but do not test, an implementation-lag reading of general-purpose technologies.

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