The Impact of Digital Development on Economic Growth in Selected ASEAN Countries

Ariska Damayanti, Fathurrahman Priyanta, Toifa Rosita Dewi

Abstract


This study examines the influence of digital development on economic growth in five ASEAN countries: Indonesia, Malaysia, Cambodia, the Philippines, and Vietnam. As technology adoption accelerates, digital indicators such as internet usage, mobile phone subscriptions, and broadband access are becoming key contributors to national economic performance. Using panel data from 2009 to 2019 sourced from the World Bank, this research applies a multiple linear regression analysis to evaluate the impact of digital variables on Gross Domestic Product (GDP). The best-fit model, determined through Chow, Hausman, and Langrangian Multiplier tests, is the Random Effect Model (REM). The findings reveal that both internet usage and mobile subscriptions have a significant positive impact on GDP, while broadband subscriptions do not show a significant individual effect. However, when considered collectively, all digital development indicators significantly influence GDP. These results underscore the importance of digital infrastructure and connectivity in driving inclusive economic growth within ASEAN.


Keywords


ASEAN; Digital Development; Economic Growth; GDP

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DOI: https://doi.org/10.20961/bfde.v4i2.107365

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