Impact of Digitalization on Economic Growth in Developing Countries: A Panel ARDL Analysis
DOI:
https://doi.org/10.55737/qjss.559137478Keywords:
Digitalization, Economic Growth, Developing Countries, Digital Infrastructure, ARDLAbstract
The study aims to explore how digitization affects the economic growth of developing nations. It is theorized that emerging technologies are pivotal in influencing the economic landscape of developing countries. Key factors include improved communication facilitated by enhanced technology infrastructure, as well as the ability to reach a larger portion of the impoverished population previously excluded. The research employs a panel dataset spanning 24 years, from 2000 to 2023, covering 87 emerging economies. The Panel Autoregressive Distributed Lag (ARDL) methodology is utilized for the analysis. According to the research, taxes have a detrimental impact on economic expansion. At the same time, variables such as DI, GFCF, LFPR, and M2 have a positive effect on the economic growth of emerging nations. The research recommends that investments in digital infrastructure and technology utilization should be made to bolster the growth of developing countries. Increasing the Labor Force Participation Rate (LFPR) is essential for promoting job creation and entrepreneurial activities.
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