Research Article

The Effects of Digitalization on Economic Growth: A Comparative Panel Data Analysis of EU and BRICS-T Countries

Volume: 6 Number: 1 March 27, 2025
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The Effects of Digitalization on Economic Growth: A Comparative Panel Data Analysis of EU and BRICS-T Countries

Abstract

This study examines the influence of digitalization on economic growth through a comparative comparison of European Union (EU) countries and BRICS-T nations. The study employs panel data analysis, encompassing the years 2001 to 2022 for EU countries and 2003 to 2021 for BRICS-T countries. The findings indicate that in EU nations, variables such as internet utilization, fixed broadband availability, and gross fixed capital formation positively and considerably enhance economic growth. In BRICS-T nations, mobile phone subscriptions, internet utilization, and gross fixed capital formation are pivotal growth catalysts. Nonetheless, foreign direct investments and trade openness exhibit statistically minor effects in both regions. This research underscores the essential function of digital infrastructure in promoting economic development and offers policy recommendations to optimize the advantages of digitalization in both emerging and mature nations.

Keywords

Supporting Institution

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Ethical Statement

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Thanks

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References

  1. Acemoglu, D. (2008). Introduction to modern economic growth. Princeton University Press.
  2. Aghaei, M., & Rezagholizadeh, M. (2017). The impact of information and communication technology (ICT) on economic growth in the OIC Countries. Economic and Environmental Studies, 17(2), 257-278.
  3. Albiman, M. M., & Sulong, Z. (2016). The role of ICT use to the economic growth in Sub Saharan African region (SSA). Journal of science and technology policy management, 7(3), 306-329.
  4. Aleksandrova, A., Truntsevsky, Y., & Polutova, M. (2022). Digitalization and its impact on economic growth. Brazilian Journal of Political Economy, 42(2), 424-441.
  5. Appiah-Otoo, I., & Song, N. (2021). The impact of ICT on economic growth-Comparing rich and poor countries. Telecommunications Policy, 45(2), 102082.
  6. Arendt, Ł. (2015). The digital economy, ICT and economic growth in the CEE countries. Olsztyn Economic Journal, 10(3), 247-262.
  7. Bahrini, R., & Qaffas, A. A. (2019). Impact of information and communication technology on economic growth: Evidence from developing countries. Economies, 7(1), 21.
  8. Bakari, S. (2022). The impact of digitalization and patent on economic growth in Romania. Journal of Research, Innovation and Technologies, 1(1(1)), 49-61.

Details

Primary Language

English

Subjects

Panel Data Analysis, Applied Macroeconometrics

Journal Section

Research Article

Early Pub Date

March 27, 2025

Publication Date

March 27, 2025

Submission Date

January 20, 2025

Acceptance Date

March 6, 2025

Published in Issue

Year 2025 Volume: 6 Number: 1

APA
Kasap, A. (2025). The Effects of Digitalization on Economic Growth: A Comparative Panel Data Analysis of EU and BRICS-T Countries. Dynamics in Social Sciences and Humanities, 6(1), 10-24. https://doi.org/10.62425/dssh.1623503
AMA
1.Kasap A. The Effects of Digitalization on Economic Growth: A Comparative Panel Data Analysis of EU and BRICS-T Countries. Dynamics in Social Sciences and Humanities. 2025;6(1):10-24. doi:10.62425/dssh.1623503
Chicago
Kasap, Ahmet. 2025. “The Effects of Digitalization on Economic Growth: A Comparative Panel Data Analysis of EU and BRICS-T Countries”. Dynamics in Social Sciences and Humanities 6 (1): 10-24. https://doi.org/10.62425/dssh.1623503.
EndNote
Kasap A (March 1, 2025) The Effects of Digitalization on Economic Growth: A Comparative Panel Data Analysis of EU and BRICS-T Countries. Dynamics in Social Sciences and Humanities 6 1 10–24.
IEEE
[1]A. Kasap, “The Effects of Digitalization on Economic Growth: A Comparative Panel Data Analysis of EU and BRICS-T Countries”, Dynamics in Social Sciences and Humanities, vol. 6, no. 1, pp. 10–24, Mar. 2025, doi: 10.62425/dssh.1623503.
ISNAD
Kasap, Ahmet. “The Effects of Digitalization on Economic Growth: A Comparative Panel Data Analysis of EU and BRICS-T Countries”. Dynamics in Social Sciences and Humanities 6/1 (March 1, 2025): 10-24. https://doi.org/10.62425/dssh.1623503.
JAMA
1.Kasap A. The Effects of Digitalization on Economic Growth: A Comparative Panel Data Analysis of EU and BRICS-T Countries. Dynamics in Social Sciences and Humanities. 2025;6:10–24.
MLA
Kasap, Ahmet. “The Effects of Digitalization on Economic Growth: A Comparative Panel Data Analysis of EU and BRICS-T Countries”. Dynamics in Social Sciences and Humanities, vol. 6, no. 1, Mar. 2025, pp. 10-24, doi:10.62425/dssh.1623503.
Vancouver
1.Ahmet Kasap. The Effects of Digitalization on Economic Growth: A Comparative Panel Data Analysis of EU and BRICS-T Countries. Dynamics in Social Sciences and Humanities. 2025 Mar. 1;6(1):10-24. doi:10.62425/dssh.1623503

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