The Impact of Digital Technologies on Economic Growth in the Example of Central Asian and European Countries

Abstract

This study examines the impact of digital technologies on the economic growth of Central Asian and European countries. With the increasing integration of digital technologies globally, understanding their economic implications is crucial, particularly in diverse regions like Central Asia and Europe. The research employs the Autoregressive Distributed Lag (ARDL) model, a robust econometric method suitable for analyzing both short-term and long-term relationships in time series data. This approach utilizes 22 years of data from the World Bank, focusing on variables such as internet usage, sanctioned phone subscriptions, and mobile cellular subscriptions, and their impact on GDP per capita. The ARDL model's findings reveal a positive correlation between the increase in digital technology usage (specifically internet users and phone subscriptions) and GDP per capita in Central Asian and European countries. A notable increase in GDP per capita is observed with the rise in internet users and sanctioned phone subscriptions, whereas the impact of mobile cellular subscriptions, though positive, is comparatively smaller. The results suggest that enhanced digital connectivity, as evidenced by increased internet usage and phone subscriptions, significantly contributes to economic growth. This underscores the importance of digital inclusion and infrastructure development in driving economic development in diverse geographical regions. The study highlights the significant role of digital technologies in economic growth, providing empirical evidence that underscores the need for policies and initiatives to promote digital inclusion and infrastructure development in Central Asia and Europe.