Digitalization, Education And Economic Growth: An Analysis Of Developing Countries

Abstract

Education can increase the human capital of the labor force, which would increase labor productivity and levels of economic growth. Existing research highlights the role of digitalization and education in enhancing the economic growth path of developing countries. The study has used data from 2002 to 2020 for the 12 selected developing economies. We have used economic growth as a dependent variable and digitalization, education, health, foreign direct investment, and life expectancy as independent variables. The unit root test and random effect technique are used to highlight the role of digitalization with education on the economic growth of developing economies. The study findings pointed out that digitalization with the help of education contributed much to enhancing the economic growth of these countries. The result also concluded that health, life expectancy, and foreign direct investment also boosted up economic growth of these nations. The study suggested more utilization of digitalization for high economic growth. Moreover, the Government must provide a stable environment to attract more foreign direct investment. Finally, there is a dire need to allocate more budget for education and health sectors to improve the welfare of the concerned nations.