HOW THE DIGITAL ECONOMY AFFECTS GDP ACROSS ASEAN COUNTRIES
TL;DR
The findings demonstrate that the digital economy has a positive and statistically significant influence on GDP growth across ASEAN countries, although the magnitude of this effect differs among the selected indicators.
Abstract
Abstract This study investigates the effects of the digital economy on GDP growth in nine ASEAN countries from 2004 to 2023. The digital economy is measured using three commonly applied indicators: mobile technology penetration, fixed broadband subscriptions, and the share of the population using the Internet. Data were obtained from the World Bank’s World Development Indicators database and analysed using a dynamic panel model estimated through the System Generalized Method of Moments (System GMM). The findings demonstrate that the digital economy has a positive and statistically significant influence on GDP growth across ASEAN countries, although the magnitude of this effect differs among the selected indicators. The proportion of Internet users represents the most influential channel through which digitalisation contributes to economic growth, followed by mobile technology penetration. By contrast, the impact of fixed broadband subscriptions is comparatively limited. The results also show that government expenditure and trade openness make important contributions to economic growth, while the effects of capital investment and foreign direct investment depend on specific economic conditions. This study contributes to the literature by identifying the relative importance of different dimensions of the digital economy in promoting GDP growth in ASEAN. It also highlights that the productive and effective use of digital technologies is more important for economic performance than the mere availability of digital infrastructure.