How globalization is changing digital technology adoption: An international perspective

Abstract

This paper examines how globalization influences the adoption of digital technologies. The purpose of the paper is to explain how globalization affects new technology adoptions. We use country-level data from the globalization index (KOF), digital adoption index (DAI), global competitiveness index (GDI), and total factor productivity (TFP) on 183 countries and using advanced panel data modeling. Empirical findings show globalization can significantly affect technology adoption in all countries. The study's findings show globalization positively affects technology transfers and spillovers; here, using digital technology. Countries undergoing significant technological changes achieve ever-growing digital technology adoption convergence. In our study, the evidence comes from an international perspective, with an extensive sample of 183 countries that explain about 80 percent of the transfer process.