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Do Digital Transformation and Macroeconomic Stability Matter for The Asean's Economic Growth?

Author

Listed:
  • Sri Andaiyani

    (University of Sriwijaya, Indonesia)

  • Abdul Bashir

    (University of Sriwijaya, Indonesia)

  • Ichsan Hamidi

    (University of Sriwijaya, Indonesia)

Abstract

This work assesses the association between digital transformation, macroeconomic stability, and economic growth. We employ yearly data from 2010 to 2021 in ASEAN countries. The findings show digital transformation and macroeconomic stability can increase in GDP in the long term. Digital transformation contributes favorably and substantially, while macroeconomic stability negatively and significantly affects economic growth in the short-term. The study reveals causal link between digital transformation and macroeconomic stability, causality from digital transformation to economic growth, and economic growth to macroeconomic stability. This implies that digital transformation is the engine of growth.

Suggested Citation

  • Sri Andaiyani & Abdul Bashir & Ichsan Hamidi, 2025. "Do Digital Transformation and Macroeconomic Stability Matter for The Asean's Economic Growth?," Bulletin of Monetary Economics and Banking, Bank Indonesia, vol. 28(4), pages 625-650, December.
    • Handle: RePEc:idn:journl:v:28:y:2025:i:4f:p:625-650
    DOI: https://doi.org/10.59091/2460-9196.1967
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    References listed on IDEAS

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    Keywords

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    JEL classification:

    • B22 - Schools of Economic Thought and Methodology - - History of Economic Thought since 1925 - - - Macroeconomics
    • C62 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Existence and Stability Conditions of Equilibrium
    • O00 - Economic Development, Innovation, Technological Change, and Growth - - General - - - General
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence

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