Digital Transformation, Investment, And Economic Growth: Empirical Evidence from Asean Countries (2001–2024)
Abstract
The research examines digital development effects on foreign investment and economic expansion throughout ten ASEAN nations during 2001 through 2024. The Fixed Effects model with Driscoll–Kraay robust standard errors shows that better Internet usage and secure Internet server numbers directly boost GDP levels which demonstrates digital connectivity and cybersecurity infrastructure drive regional economic expansion. The relationship between mobile cellular subscriptions and GDP shows negative results which could result from mobile network expansion reaching its limits or becoming less efficient. The research shows that foreign direct investment (FDI) and ICT service exports have positive but statistically insignificant relationships with GDP but their effects depend on the digital development stage of each nation. The research validates cross-sectional dependence and heteroskedasticity through diagnostic tests which robust standard errors maintain model accuracy. The research demonstrates that ASEAN economic sustainability depends on digital infrastructure quality and accessibility rather than its overall quantity. The research demonstrates that ASEAN countries need to develop better broadband networks and digital skills and secure ICT systems to achieve maximum economic value from digital transformation.