Analyze Digital Economic Transformation to Increase Economic Growth in ASEAN-6 Countries

Abstract

The advent of digital technologies such as e-commerce and electronic payment systems has radically changed business operations and consumer involvement, making digital transformation a crucial factor for competitiveness and efficiency in the ASEAN market in the context of globalization. ASEAN countries are responding to the growth of the digital economy by carrying out transformations. This study investigates the impact of digital economy transformation, Foreign Direct Investment (FDI), exports, and Consumer Price Index (CPI) on economic growth in ASEAN-6 countries. This research used secondary data from Indonesia, Malaysia, Singapore, the Philippines, Thailand, and Vietnam in the period of 2015 to 2024. The method used was a fixed-effects panel data model with standard errors and Cross-Section Weight-Cross-Section SUR (PSCE) covariances. This differs from previous research that uses measures of digital infrastructure such as broadband subscriptions, internet penetration and mobile technology as proxies for the digital economy. This study original as it measures the digital economy using Gross Merchandise Value (GMV) a direct indicator of digital economic output, rather than digital access or readiness. This technique gives a clearer picture of how the actual size of digital economic activity compares to economic development in ASEAN. The results of the study suggest that the digital economy and FDI have no substantial effect on economic growth, whereas exports and CPI have a considerable beneficial impact.