The Impact of Digitalization on Economic Growth in ASEAN

Abstract

Purpose – The study aims to confirm a positive relationship between digitalization and economic growth in ASEAN. It seeks to provide insights into the challenges and future directions for ASEAN’s economic growth by examining the impact of digitalization through broadband penetration. Design/Methodology/Approach – This study employs regression analysis using a fixed-effect model with data sourced from World Development Indicators (WDI) and the United Nations Development Programme (UNDP), covering the period from 2008 to 2020. Its primary objectives are to offer a comprehensive understanding of the relationship between digital technologies and the economic development of ASEAN, and to identify factors contributing to economic growth in the region. The focus is on Southeast Asian countries, namely Brunei Darussalam, Cambodia, Indonesia, Lao PDR, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Vietnam Findings – The findings yield compelling evidence in support of the hypothesis, emphasizing the pivotal role of expanding broadband infrastructure in fostering economic growth across ASEAN countries. Furthermore, the study underscores the importance of enhancing broadband infrastructure and highlights the potential impact on the economic development of developing nations. It emphasizes the crucial role played by fixed-broadband, mobile-broadband, and fixedtelephone subscriptions in contributing to the economic growth of ASEAN countries. Research Implications – This study proves a significant positive relationship between digitalization and economic growth in the region. It offers a preliminary understanding of the impact of digitalization on economic growth in ASEAN, laying the groundwork for future research.