Digitalization, Globalization and Economic Growth: A Panel Analysis using GMM

By Yongseong Foo, Lee Chin, Kongsan Chen, Piratdin Allayarov

13 May 2024 | 517-523 pages

Abstract:

In the context globalization, this study analyzes the influence of digitalization on economic growth in 120 countries from 2000 to 2020 and we use the generalized methods of moments (GMM) estimators. The empirical findings showed that digitalization has a negative impact on economic growth, while the quadratic term of digitalization positively influence the economic growth. Therefore, the existence of a U-shaped relationship between digitalization and economic growth. Initially, digitalization thwarts economic growth. Once it reaches a certain level, digitalization will boost economic growth.