The impact of Technical infrastructure on the Digital Economy in Developed countries of Asia

Abstract

In recent decades, the digital economy has significantly contributed to global economic growth. Asian developed nations have increasingly depended on digital technologies to improve productivity, competitiveness, and economic transformation. Despite possessing relatively advanced economic frameworks, discrepancies in technical infrastructure, network coverage, and subsidiary digital services continue to hinder the development of the digital economy in these nations. This study objectively examines the influence of technical infrastructure on the digital economy in industrialized Asian nations from 2001 to 2022. The results of diagnostic tests suggest the use of cross-sectionally augmented autoregressive distributed lags (CS-ARDL) model. The results of CS-ARDL display that technical infrastructure, modern technology access, return on telecom investment and technological innovations has statistically significant role in approving digital economy in developed countries of Asia. The result also suggest that the model is dynamically stable and any short run disequilibrium can be readjusted in the long run. Finally, the study put forward some valuable suggestions for policy makers.