IDEAS home Printed from https://ideas.repec.org/h/spr/prbchp/978-3-032-11198-2_10.html

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
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a
    for a similarly titled item that would be available.

    References listed on IDEAS

    as
    1. Mohamed Ali Trabelsi, 2024. "The impact of artificial intelligence on economic development," Journal of Electronic Business & Digital Economics, Emerald Group Publishing Limited, vol. 3(2), pages 142-155, May.
    2. Robert M. Solow, 1956. "A Contribution to the Theory of Economic Growth," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 70(1), pages 65-94.
    3. Schumpeter, Joseph A., 1947. "The Creative Response in Economic History," The Journal of Economic History, Cambridge University Press, vol. 7(2), pages 149-159, November.
    4. Lurong Chen & Lydia Ruddy, 2020. "Improving Digital Connectivity: Policy Priority for ASEAN Digital Transformation," Working Papers PB-2020-07, Economic Research Institute for ASEAN and East Asia (ERIA).
    5. Congbo Chen & Azhong Ye, 2021. "Heterogeneous Effects of ICT across Multiple Economic Development in Chinese Cities: A Spatial Quantile Regression Model," Sustainability, MDPI, vol. 13(2), pages 1-13, January.
    6. Njoh, Ambe J., 2018. "The relationship between modern Information and Communications Technologies (ICTs) and development in Africa," Utilities Policy, Elsevier, vol. 50(C), pages 83-90.
    7. Rui Li & Jing Rao & Liangyong Wan, 2022. "The digital economy, enterprise digital transformation, and enterprise innovation," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 43(7), pages 2875-2886, October.
    8. Ilkhom SHARIPOV, 2015. "Contemporary Economic Growth Models And Theories: A Literature Review," CES Working Papers, Centre for European Studies, Alexandru Ioan Cuza University, vol. 7(3), pages 759-773, September.
    9. Audi, Marc & Ali, Amjad, 2019. "The Advancement in Information and Communication Technologies (ICT) and Economic Development: A Panel Analysis," MPRA Paper 93476, University Library of Munich, Germany.
    10. Sachs, Jeffrey D & Warner, Andrew M, 1997. "Fundamental Sources of Long-Run Growth," American Economic Review, American Economic Association, vol. 87(2), pages 184-188, May.
    11. Paunov, Caroline & Rollo, Valentina, 2016. "Has the Internet Fostered Inclusive Innovation in the Developing World?," World Development, Elsevier, vol. 78(C), pages 587-609.
    12. David, Oladipo Olalekan, 2019. "Nexus between telecommunication infrastructures, economic growth and development in Africa: Panel vector autoregression (P-VAR) analysis," Telecommunications Policy, Elsevier, vol. 43(8), pages 1-1.
    13. Md Aslam Mia & Md Imran Hossain & Sunil Sangwan, 2024. "Determinants of digitalization: Evidence from Asia and the Pacific countries," Digital Transformation and Society, Emerald Group Publishing Limited, vol. 3(4), pages 340-358, March.
    14. Wang, Di & Zhou, Tao & Lan, Feng & Wang, Mengmeng, 2021. "ICT and socio-economic development: Evidence from a spatial panel data analysis in China," Telecommunications Policy, Elsevier, vol. 45(7).
    15. Guo, Bingnan & Wang, Yu & Zhang, Hao & Liang, Chunyan & Feng, Yu & Hu, Feng, 2023. "Impact of the digital economy on high-quality urban economic development: Evidence from Chinese cities," Economic Modelling, Elsevier, vol. 120(C).
    16. Chenhui Ding & Chao Liu & Chuiyong Zheng & Feng Li, 2021. "Digital Economy, Technological Innovation and High-Quality Economic Development: Based on Spatial Effect and Mediation Effect," Sustainability, MDPI, vol. 14(1), pages 1-21, December.
    17. Jianing Pang & Fangyi Jiao & Yimeng Zhang, 2022. "An Analysis of the Impact of the Digital Economy on High-Quality Economic Development in China—A Study Based on the Effects of Supply and Demand," Sustainability, MDPI, vol. 14(24), pages 1-21, December.
    18. Harald Edquist & Peter Goodridge & Jonathan Haskel, 2021. "The Internet of Things and economic growth in a panel of countries," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 30(3), pages 262-283, April.
    19. Lucas, Robert Jr., 1988. "On the mechanics of economic development," Journal of Monetary Economics, Elsevier, vol. 22(1), pages 3-42, July.
    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. Charles Shaaba Saba & Nicholas Ngepah & Nicholas M. Odhiambo, 2024. "Information and Communication Technology (ICT), Growth and Development in Developing Regions: Evidence from a Comparative Analysis and a New Approach," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 15(3), pages 14700-14748, September.
    2. Fan, Xiaoyan & Ding, Guoxuan & Long, Shuting & Dong, Yiran & Yan, Jiajun, 2025. "Digital divide or dividend? Exploring the impact of digital economy on regional gaps of high-quality economic development in China using relational data model," International Review of Economics & Finance, Elsevier, vol. 101(C).
    3. Abdulqadir, Idris A. & Asongu, Simplice A., 2022. "The asymmetric effect of internet access on economic growth in sub-Saharan Africa," Economic Analysis and Policy, Elsevier, vol. 73(C), pages 44-61.
    4. Hong, Junjie & Shi, Fangyuan & Zheng, Yuhan, 2023. "Does network infrastructure construction reduce energy intensity? Based on the “Broadband China” strategy," Technological Forecasting and Social Change, Elsevier, vol. 190(C).
    5. Smaoui, Houcem & Nechi, Salem, 2017. "Does sukuk market development spur economic growth?," Research in International Business and Finance, Elsevier, vol. 41(C), pages 136-147.
    6. Alfredo Monte & Sara Moccia & Luca Pennacchio, 2022. "Regional entrepreneurship and innovation: historical roots and the impact on the growth of regions," Small Business Economics, Springer, vol. 58(1), pages 451-473, January.
    7. Chen, Binkai & Lin, Justin Yifu, 2021. "Development strategy, resource misallocation and economic performance," Structural Change and Economic Dynamics, Elsevier, vol. 59(C), pages 612-634.
    8. Capolupo, Rosa, 2009. "The New Growth Theories and Their Empirics after Twenty Years," Economics - The Open-Access, Open-Assessment E-Journal (2007-2020), Kiel Institute for the World Economy, vol. 3, pages 1-72.
    9. Rosa Capolupo, 2005. "THE NEW GROWTH THEORIES AND THEIR EMPIRICS, Discussion Paper in Economics, University of Glasgow, N. 2005-04 (http://www.gla.ac.uk/Acad/Economics," GE, Growth, Math methods 0506003, University Library of Munich, Germany.
    10. Celine Kauffmann, 2000. "The interactive effect of trade and education on growth," Post-Print halshs-03721622, HAL.
    11. Audi, Marc & Ali, Amjad & Fayad Hamadeh, Hani, 2022. "Nexus among innovations, financial development and economic growth in developing countries," MPRA Paper 115220, University Library of Munich, Germany.
    12. Hugo Erken & Piet Donselaar & Roy Thurik, 2018. "Total factor productivity and the role of entrepreneurship," The Journal of Technology Transfer, Springer, vol. 43(6), pages 1493-1521, December.
    13. Tulio Antonio Cravo & Elias Soukiazis, 2009. "Educational Thresholds and Economic Growth: Empirical Evidence from Brazilian States," Working Papers 2009.1, International Network for Economic Research - INFER.
    14. Charles Ackah, & Oliver Morrissey, 2007. "Trade Liberalisation is Good for You if You are Rich," Discussion Papers 07/01, University of Nottingham, CREDIT.
    15. Xiaoli Lu & Jingmin Zhu & Meng Zhou & Yilu Zhang, 2025. "Is digital economy the driving force for improving the tourism economic resilience? Evidence from China," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 27(12), pages 30249-30286, December.
    16. Zoltan J. Acs & David B. Audretsch & Pontus Braunerhjelm & Bo Carlsson, 2005. "Growth and Entrepreneurship: An Empirial Assessment," Papers on Entrepreneurship, Growth and Public Policy 2005-32, Max Planck Institute of Economics, Entrepreneurship, Growth and Public Policy Group.
    17. Rosa Capolupo, "undated". "The New Growth Theoris and their Empirics," Working Papers 2005_4, Business School - Economics, University of Glasgow.
    18. Elias Soukiazis & Tulio Cravo, 2006. "Human Capital As a Conditioning Factor to the Convergence Process Among the Brazilian States," ERSA conference papers ersa06p50, European Regional Science Association.
    19. Flavio Vilela Vieira & Aderbal Oliveira Damasceno, 2011. "Is There a Primary Roleof Institutions on Explaining Cross Country Differences in IncomeLevels and Long-Run Economic Growth?," Anais do XXXVII Encontro Nacional de Economia [Proceedings of the 37th Brazilian Economics Meeting] 77, ANPEC - Associação Nacional dos Centros de Pós-Graduação em Economia [Brazilian Association of Graduate Programs in Economics].
    20. Cevik Serhan & Jalles Joao, 2024. "Eye of the Storm: The Impact of Climate Shocks on Inflation and Growth," Review of Economics, De Gruyter, vol. 75(2), pages 109-138.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;

    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

    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:spr:prbchp:978-3-032-11198-2_10. 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: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    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.