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Digital Advancements as a Catalyst for Economic Development: An Empirical Examination of Asia Pacific from 1991–2019

In: Positive Performativity and Transformative Management Research

Author

Listed:
  • Assem Atalla

    (The British University in Egypt)

  • Noha Ghazy

    (The German International University)

Abstract

The aim of this paper is to examine the role of digital advancements, proxied by % of ͏internet users in the population, as a catalyst for economic development in͏ the͏ ͏Asia-Pacific region, with͏ ͏a particular focus on the period from 1991 to 2019. By exploring this relationship, the research seeks to contribute to both academic and practical ͏discussions on how digitalization intersects with economic development and innovation in͏ the Asia–Pacific context, as well as generally. The͏ selected countries have a solid base of digital infrastructure and innovative capacities, so it is worth investigating whether these capacities spill over to development or not, and the related implications of that. The ͏research emphasizes the importance of understanding the mechanisms through which digitalization impacts development, especially within the context of a rapidly evolving global economy. The paper drew up two hypotheses, first that digital advancements and economic development have a direct relationship. This was tested via an Ordinary Least Squared (OLS) panel regression. Second, innovation is a viable pathway in the digital advancements-economic development relationship. This hypothesis was tested via estimating a Two-Stage Least Squared (2SLS) model. The results of the OLS regression were inconsistent. Hence, further investigation was needed via 2SLS to test the second hypothesis. The results approved both the first and second hypotheses, implying that digitalization has a positive impact on development and that innovation is a viable pathway in the digital advancement-economic development relationship. Such results hold implications for both research and policy makers.

Suggested Citation

  • Assem Atalla & Noha Ghazy, 2026. "Digital Advancements as a Catalyst for Economic Development: An Empirical Examination of Asia Pacific from 1991–2019," Springer Proceedings in Business and Economics, in: Hebatallah Ghoneim & José Iparraguirre & Martin Walther & Rasha S. Hassan & Noha Amer & Noha Ghazy (ed.), Positive Performativity and Transformative Management Research, pages 241-264, Springer.
    • Handle: RePEc:spr:prbchp:978-3-032-11198-2_10
    DOI: 10.1007/978-3-032-11198-2_10
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    Keywords

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    JEL classification:

    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • O57 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East
    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models

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