2021
DOI: 10.18080/jtde.v9n2.384
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Revisiting the Nexus between Digital Economy and Economic Prosperity: Evidence from a Comparative Analysis

Abstract: In this paper, we try to investigate the contribution of digitalization on economic growth in both developed and developing countries over the period 1990-2020. For this end, different econometric tools are applied on a panel dataset. Overall, we show that the digital technologies seem to significantly and positively affect economic growth in both groups of countries. The digitalization impact level tends to differ across countries. Our empirical results also display that the short- and long-term relationship … Show more

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Cited by 9 publications
(5 citation statements)
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“…Digital expansion allows not only retaining, but also attracting new customers by creating accessibility and increased demand for their products. This situation helps the leading enterprises in the IT sector to expand production, and, consequently, to increase profits, part of which can be channeled to new developments and research related to innovations, thus maintaining the leadership positions [9]. This situation will also change the financial structure of expenses, namely, redistribute them.…”
Section: Resultsmentioning
confidence: 99%
“…Digital expansion allows not only retaining, but also attracting new customers by creating accessibility and increased demand for their products. This situation helps the leading enterprises in the IT sector to expand production, and, consequently, to increase profits, part of which can be channeled to new developments and research related to innovations, thus maintaining the leadership positions [9]. This situation will also change the financial structure of expenses, namely, redistribute them.…”
Section: Resultsmentioning
confidence: 99%
“…Digital technology can foster economic growth, but its impact may vary depending on the developmental stage of a country (Mgadmi et al, 2021). However, compared to developed countries, digital technology exerts a more significant influence on the economic growth of underdeveloped countries, which is beneficial for them to achieve leapfrog development and narrow the digital divide with developed countries (Thompson, 2011;Appiah-Otoo and Song, 2021).…”
Section: De and Economic Developmentmentioning
confidence: 99%
“…The digital economy plays a crucial role in economic growth and industrial transformation [ 8 ]. In terms of economic growth, the effects of the digital economy have been seen in many countries, not only developing economies with weak digital infrastructure [ 9 , 10 ] but also highly developed ones with advanced digital industries [ 11 ]. The literature has largely recognized a positive effect of the digital economy on economic growth, mainly attributable to changes in productivity or to externalities related to disseminating knowledge and innovation.…”
Section: Introductionmentioning
confidence: 99%