Socio-Cultural Factors and Components of the Digital Economy in Ethnic Minority Regions

Abstract

We define the digital economy as all economic activities conducted through the use of information technologies, including activities to create new markets, expand old ones, and produce digital goods and services. The digital economy has become a major driver of sustainable development and the transition towards a greener economy. However, studies show an unequal level of progress among cities, regions, and countries. Consequently, this paper explores the associations between socio-cultural factors (such as attitudes towards marriage/raising a family) and components of the digital economy (such as expenses/investment in ICT and the proportion of personal computers and the Internet in households). This study specifically examines twenty-two ethnic minority regions in Russia with data covering a five-year period. Using the Pearson correlation coefficient, the results show that socio-cultural factors including a large urban population and high divorce rates were positively associated with the digital economy, whereas a large rural population, higher birth rates, and higher natural population growth were negatively correlated with the digital economy.