Dynamic Influence of Digital and Technological Advancement on Sustainable Economic Growth in Belt and Road Initiative (BRI) Countries

Abstract

Digital and technological transformation has gained significant attention not only due to the exposure of the latest technologies but also due to its considerable impact on sustainable economic growth. This research determines the influence of digital and technological advancement on sustainable economic growth. Digital and technological advancement is composed of three variables; E-government Development Index (EGDI), Internet Users’ (IU) growth, and information and communications technology (ICT) exports. Besides that, the urbanization and unemployment rate have been considered as control variables. The dataset consists of the year 2004–2020 for 21 Asian region partner countries along Belt and Road (BRI) region. The conclusions of the two-step system GMM were validated through the D-K fixed effect regression technique. Findings indicate that increase in EGDI, ICT exports, and internet users’ growth has a significant and positive influence on sustainable economic growth which leads that digital and technological advancement having a positive influence on sustainable economic growth. Moreover, urbanization has a partial positive impact, while unemployment has a negative influence on sustainable economic growth as Asian regions are emerging economies and the rate of unemployment is very high, which is affecting the real GDP per capita. It is evident and suggested that improvement in the EGDI index, internet users’ growth, ICT exports, and reduction in the unemployment rate would enhance the balanced sustainable economic growth for all Asian countries of the BRI region.