Growth national economics based on the diffusion of digital innovation

Abstract

The main goal of this study is to verify the existence of a positive correlation between digital innovation and economic growth using the panel data analysis on the 78 countries with different levels of economy (high-income, upper-middle income, lower-middle income, and lower-income countries) over period 2000-2020. The regression method used pooled OLS, fixed effects, and random effects model and after conducting the tests, such as F-test, Breusch-Pagan LM test, Hausman test, the random effects model has been chosen. The results indicate that there is a positive significant correlation between GDP per capita, PPP, and digital innovation index (as measured by the individual using the Internet % of the population, fixed broadband subscription per 100 people, and mobile cellular subscriptions per 100 people).