DO DIGITAL TRANSFORMATION AND MACROECONOMIC STABILITY MATTER FOR THE ASEAN’S ECONOMIC GROWTH?

Abstract

This work assesses the association between digital transformation, macroeconomic stability, and economic growth. We employ yearly data from 2010 to 2021 in ASEAN countries. The findings show digital transformation and macroeconomic stability can increase in GDP in the long term. Digital transformation contributes favorably and substantially, while macroeconomic stability negatively and significantly affects economic growth in the short-term. The study reveals causal link between digital transformation and macroeconomic stability, causality from digital transformation to economic growth, and economic growth to macroeconomic stability. This implies that digital transformation is the engine of growth.