ABSTRACT

In this era of industrial revolution 4.0, where digitalization is transforming the world economy rapidly & productively, incentivizing and contributing toward economies. Whether a developed or developing economy, it has now been indispensable for almost all economies’ futuristic survival. It made us keen to determine the contribution of digitalization in developing economies in the Asia Pacific. Those economies have not been researched extensively in this field. Therefore, this study analyzes the role of digitalization in driving economic growth concerning 17 developing economies in the Asia Pacific region spanning six years from 2014 through 2019. This study employs the Partial Least Square Structural Equation Modelling (PLS-SEM) approach for evaluating the path model or relationship among exogenous and endogenous latent constructs. The empirical findings of the research purport that connectivity, human capital, ICT regulation, and spectrum have positively & significantly influenced economic growth, whereas affordability and network coverage have a negative & significant influence on economic growth. Following that, this study supported paths or relationships between affordability and GDP, connectivity and GDP, human capital and GDP, ICT regulation and GDP, and spectrum and GDP, rejecting the path between network coverage and GDP. The relevant Government authorities or regulators can use the recommendations proposed by this study for further crucial developments for stimulating digitalization. Such as enhancing broadband affordability, expanding internet connectivity, ameliorating ICT regulations, and making spectrum management effective and thereby benefiting the economy.