The Role Of Digital Infrastructure In Promoting Green Economic Growth: Evidence From Central Asian Economies

Digital infrastructure has emerged as a critical driver of economic transformation and sustainabledevelopment in both developed and developing economies. However, empirical evidence regarding itscontribution to green economic growth remains limited, particularly in the context of Central Asia. This studyexamines the impact of digital infrastructure on green economic growth in four Central Asian economies overthe period 2006–2021. A composite Digital Infrastructure Index (DII) is constructed using Principal ComponentAnalysis based on Internet usage, mobile subscriptions, and broadband penetration indicators. Green economicgrowth is measured through adjusted net savings, which captures the sustainability dimension of economicdevelopment by accounting for investments in human capital, natural resource depletion, and environmentaldamages. The analysis employs panel econometric techniques, including fixed-effects and random-effectsestimators, with model selection guided by the Hausman specification test. The empirical results indicate thatthe random-effects model is the most appropriate specification. The findings reveal that digital infrastructureexerts a statistically significant negative effect on adjusted net savings, suggesting that the current phase ofdigital expansion in Central Asia has not yet translated into improvements in sustainable economic performance.GDP growth and trade openness also demonstrate significant negative effects on adjusted net savings, whileforeign direct investment does not exhibit a statistically significant impact. These results imply that digitaltransformation alone is insufficient to promote green economic growth unless accompanied by effectiveenvironmental policies, resource-efficient technologies, and sustainability-oriented development strategies.The study contributes to the growing literature on digitalization and sustainability by providing new evidencefrom an underexplored region and highlighting the complex relationship between technological advancementand sustainable development.