IDEAS home Printed from https://ideas.repec.org/a/bjw/econen/v14y2024i3p44-58.html

The relationships between some macro indicators and digitalization process: A study in the Southeast region in Vietnam

Author

Listed:
  • Quyen Le Hoang Thuy To Nguyen

    (University of Economics Ho Chi Minh City, Ho Chi Minh City, Vietnam)

Abstract

This study aims to investigate the relationships between some macro indicators and the digitalization process in the Southeast region of Vietnam. The panel Fully Modified Ordinary Least Squares (FMOLS) has been employed with the data of 2005 - 2021 to capture the long-run relationship of the variables in the digitalization model. Income (GRDP), Foreign Direct Investment (FDI), and education (WQ) have a positive relationship with the digitalization with significant level of 1% while the role of institutional factor (PED) has not been found. The negative coefficient of the squared terms of both GRDP and FDI in the digitalization model indicates that a higher level of GRDP and FDI may not always lead to a higher level of digitalization, meaning that the region may not have the necessary resources or capacity to fully utilize the benefits of digital technologies. The findings have important practical implications for policymakers in developing human capital to fully capture the benefits of GRDP and FDI on digitalization.

Suggested Citation

  • Quyen Le Hoang Thuy To Nguyen, 2024. "The relationships between some macro indicators and digitalization process: A study in the Southeast region in Vietnam," HO CHI MINH CITY OPEN UNIVERSITY JOURNAL OF SCIENCE - ECONOMICS AND BUSINESS ADMINISTRATION, HO CHI MINH CITY OPEN UNIVERSITY JOURNAL OF SCIENCE, HO CHI MINH CITY OPEN UNIVERSITY, vol. 14(3), pages 44-58.
    • Handle: RePEc:bjw:econen:v:14:y:2024:i:3:p:44-58
    DOI: 10.46223/HCMCOUJS.econ.en.14.3.2765.2024
    as

    Download full text from publisher

    File URL: https://journalofscience.ou.edu.vn/index.php/econ-en/article/view/2765/1988
    Download Restriction: no
    File URL: https://libkey.io/10.46223/HCMCOUJS.econ.en.14.3.2765.2024?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Margarita Billon & Fernando Lera-Lopez & Rocío Marco, 2010. "Differences in digitalization levels: a multivariate analysis studying the global digital divide," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 146(1), pages 39-73, April.
    2. Nauro F. Campos & Yuko Kinoshita, 2002. "Foreign Direct Investment as Technology Transferred: Some Panel Evidence from the Transition Economies," Manchester School, University of Manchester, vol. 70(3), pages 398-419, June.
    3. Nicoletti, Giuseppe & von Rueden, Christina & Andrews, Dan, 2020. "Digital technology diffusion: A matter of capabilities, incentives or both?," European Economic Review, Elsevier, vol. 128(C).
    4. Tu D. Q. Le & Thanh Ngo & Tin H. Ho & Dat T. Nguyen, 2022. "ICT as a Key Determinant of Efficiency: A Bootstrap-Censored Quantile Regression (BCQR) Analysis for Vietnamese Banks," IJFS, MDPI, vol. 10(2), pages 1-15, June.
    5. Avik Chakrabarti, 2003. "Import competition, employment and wage in US manufacturing: new evidence from multivariate panel cointegration analysis," Applied Economics, Taylor & Francis Journals, vol. 35(13), pages 1445-1449.
    6. Eglantina Hysa & Livia Hodo, 2016. "Foreign direct investment and economic growth in Albania: a co-integration analysis," International Economics, University of Lodz, Faculty of Economics and Sociology, issue 15, pages 234-244, September.
    7. Magnus Blomström & Ari Kokko, 2002. "FDI and Human Capital: A Research Agenda," OECD Development Centre Working Papers 195, OECD Publishing.
    8. Branstetter, Lee, 2006. "Is foreign direct investment a channel of knowledge spillovers? Evidence from Japan's FDI in the United States," Journal of International Economics, Elsevier, vol. 68(2), pages 325-344, March.
    9. Kao, Chihwa, 1999. "Spurious regression and residual-based tests for cointegration in panel data," Journal of Econometrics, Elsevier, vol. 90(1), pages 1-44, May.
    10. Coe, David T. & Helpman, Elhanan, 1995. "International R&D spillovers," European Economic Review, Elsevier, vol. 39(5), pages 859-887, May.
    11. Thi Xuan Hoa Nguyen & Thi Bich Ngoc Tran & Thanh Binh Dao & Galina Barysheva & Chien Thang Nguyen & An Ha Nguyen & Tran Si Lam, 2022. "Elderly People’s Adaptation to the Evolving Digital Society: A Case Study in Vietnam," Social Sciences, MDPI, vol. 11(8), pages 1-17, July.
    12. M. Hashem Pesaran, 2021. "General diagnostic tests for cross-sectional dependence in panels," Empirical Economics, Springer, vol. 60(1), pages 13-50, January.
    13. Christine Legner & Torsten Eymann & Thomas Hess & Christian Matt & Tilo Böhmann & Paul Drews & Alexander Mädche & Nils Urbach & Frederik Ahlemann, 2017. "Digitalization: Opportunity and Challenge for the Business and Information Systems Engineering Community," Business & Information Systems Engineering: The International Journal of WIRTSCHAFTSINFORMATIK, Springer;Gesellschaft für Informatik e.V. (GI), vol. 59(4), pages 301-308, August.
    14. Quibria, M. G. & Ahmed, Shamsun N. & Tschang, Ted & Reyes-Macasaquit, Mari-Len, 2003. "Digital divide: determinants and policies with special reference to Asia," Journal of Asian Economics, Elsevier, vol. 13(6), pages 811-825, January.
    15. Rafael E. De Hoyos & Vasilis Sarafidis, 2006. "Testing for cross-sectional dependence in panel-data models," Stata Journal, StataCorp LLC, vol. 6(4), pages 482-496, December.
    16. Frederico Cruz-Jesus & Tiago Oliveira & Fernando Bacao & Zahir Irani, 2017. "Assessing the pattern between economic and digital development of countries," Information Systems Frontiers, Springer, vol. 19(4), pages 835-854, August.
    17. David B. Audretsch & Erik E. Lehmann, 2022. "The knowledge spillover theory of entrepreneurship," Chapters, in: Cristiano Antonelli (ed.), Elgar Encyclopedia on the Economics of Knowledge and Innovation, chapter 39, pages 317-324, Edward Elgar Publishing.
    18. Peter Pedroni, 1999. "Critical Values for Cointegration Tests in Heterogeneous Panels with Multiple Regressors," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 61(S1), pages 653-670, November.
    19. Ngozi Adeleye & Chiamaka Eboagu, 2019. "Evaluation of ICT development and economic growth in Africa," Netnomics, Springer, vol. 20(1), pages 31-53, April.
    20. M. Hashem Pesaran, 2007. "A simple panel unit root test in the presence of cross-section dependence," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 22(2), pages 265-312.
    21. Elsadig Musa Ahmed, 2021. "Modelling Information and Communications Technology Cyber Security Externalities Spillover Effects on Sustainable Economic Growth," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 12(1), pages 412-430, March.
    22. repec:bla:obuest:v:61:y:1999:i:0:p:653-70 is not listed on IDEAS
    23. Lars-Hendrik Roller & Leonard Waverman, 2001. "Telecommunications Infrastructure and Economic Development: A Simultaneous Approach," American Economic Review, American Economic Association, vol. 91(4), pages 909-923, September.
    24. Jeffrey M Wooldridge, 2010. "Econometric Analysis of Cross Section and Panel Data," MIT Press Books, The MIT Press, edition 2, volume 1, number 0262232588, December.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Skare, Marinko & Gavurova, Beata & Blažević Burić, Sanja, 2024. "Artificial intelligence and wealth inequality: A comprehensive empirical exploration of socioeconomic implications," Technology in Society, Elsevier, vol. 79(C).
    2. Polemis, Michael & Tselekounis, Markos, 2019. "Does deregulation drive innovation intensity? Lessons learned from the OECD telecommunications sector," MPRA Paper 92770, University Library of Munich, Germany.
    3. Nahiduzzaman, Md. & Sarker, Sanjoy Kumar & Kuri, Bapon Chandra & Dhar, Bablu Kumar & Roy, Partha Pratim & Karim, Rejaul, 2025. "Navigating environmental vulnerability and resource dependence: Toward equitable and sustainable growth pathways in resource-rich economies," Resources Policy, Elsevier, vol. 111(C).
    4. Sohail, Muhammad Tayyab & Ullah, Sana & Ozturk, Ilhan & Sohail, Sidra, 2025. "Energy justice, digital infrastructure, and sustainable development: A global analysis," Energy, Elsevier, vol. 319(C).
    5. Acikgoz, Senay & Ben Ali, Mohamed Sami, 2019. "Where does economic growth in the Middle Eastern and North African countries come from?," The Quarterly Review of Economics and Finance, Elsevier, vol. 73(C), pages 172-183.
    6. Waaje, Abdul & Roshid, Md Mustaqim & Islam, Sohidul & Chandra Bhowmik, Reday & Rahaman, Muhammad Abdur & Hassan, Md Mahedi, 2025. "Tourism, trade, energy, and economic development: Drivers of ecological footprint in the World’s top tourist destinations," Innovation and Green Development, Elsevier, vol. 4(3).
    7. Markus Eberhardt & Francis Teal, 2008. "Modeling Technology and Technological Change in Manufacturing: How do Countries Differ?," CSAE Working Paper Series 2008-12, Centre for the Study of African Economies, University of Oxford.
    8. Caravaggio, Nicola, 2022. "Economic growth and forest transition in Latin America," Forest Policy and Economics, Elsevier, vol. 135(C).
    9. Caravaggio, Nicola, 2020. "A global empirical re-assessment of the Environmental Kuznets curve for deforestation," Forest Policy and Economics, Elsevier, vol. 119(C).
    10. Musarat Abbas & Ling Yang & Michael L. Lahr, 2024. "Globalization’s effects on South Asia’s carbon emissions, 1996–2019: a multidimensional panel data perspective via FGLS," Humanities and Social Sciences Communications, Palgrave Macmillan, vol. 11(1), pages 1-19, December.
    11. Waqas & Dilawar Khan & Róbert Magda, 2022. "The Impact of Forest Wood Product Exports on Environmental Performance in Asia," Sustainability, MDPI, vol. 14(20), pages 1-14, October.
    12. Rishan Adha & Cheng-Yih Hong & Somya Agrawal & Li-Hua Li, 2023. "ICT, carbon emissions, climate change, and energy demand nexus: The potential benefit of digitalization in Taiwan," Energy & Environment, , vol. 34(5), pages 1619-1638, August.
    13. Dhahri, Sabrine & Omri, Anis, 2018. "Entrepreneurship contribution to the three pillars of sustainable development: What does the evidence really say?," World Development, Elsevier, vol. 106(C), pages 64-77.
    14. Trofimov, Ivan D., 2022. "Determinants of the profit rates in the OECD economies: A panel data analysis of the Kalecki's profit equation," Structural Change and Economic Dynamics, Elsevier, vol. 61(C), pages 380-397.
    15. Mirza, Faisal Mehmood & Sinha, Avik & Khan, Javeria Rehman & Kalugina, Olga A. & Zafar, Muhammad Wasif, 2022. "Impact of Energy Efficiency on CO2 Emissions: Empirical Evidence from Developing Countries," MPRA Paper 111923, University Library of Munich, Germany, revised 2022.
    16. Mohd Arshad Ansari, 2025. "Tourism and Economic Growth: Evidence from Cross-Country Data with Policy Insights," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 16(1), pages 968-1013, March.
    17. Tarik Dogru & Umit Bulut & Ercan Sirakaya-Turk, 2021. "Modeling tourism demand: Theoretical and empirical considerations for future research," Tourism Economics, , vol. 27(4), pages 874-889, June.
    18. Uddin, Gazi Salah & Hasan, Md. Bokhtiar & Park, Donghyun & Ali, Md. Sumon & Wadström, Christoffer, 2025. "Exploring the economic and non-economic determinants of investments in renewable energy," Renewable Energy, Elsevier, vol. 255(C).
    19. Markus Eberhardt & Francis Teal, 2011. "Econometrics For Grumblers: A New Look At The Literature On Cross‐Country Growth Empirics," Journal of Economic Surveys, Wiley Blackwell, vol. 25(1), pages 109-155, February.
    20. Heike Belitz & Florian Mölders, 2016. "International knowledge spillovers through high-tech imports and R&D of foreign-owned firms," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 25(4), pages 590-613, June.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;

    JEL classification:

    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • E00 - Macroeconomics and Monetary Economics - - General - - - General
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bjw:econen:v:14:y:2024:i:3:p:44-58. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Vu Tuan Truong (email available below). General contact details of provider: https://journalofscience.ou.edu.vn/index.php/econ-en .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.