The Role of Digitalization, Natural Resources, and Trade Openness in Driving Economic Growth: Fresh Insights from East Asia-Pacific Countries

Bakari, Sayef (2024): The Role of Digitalization, Natural Resources, and Trade Openness in Driving Economic Growth: Fresh Insights from East Asia-Pacific Countries.

Abstract

This study explores the determinants of economic growth in 17 East Asia-Pacific countries from 2004 to 2023, analyzing the effects of capital, labor, digitalization, financial development, natural resources, and trade openness. Utilizing a suite of statistical and econometric techniques—including descriptive statistics, correlation analysis, Static Gravity Model, Generalized Method of Moments (GMM), and Two-Stage Least Squares (2SLS)—the research reveals significant insights into the region's economic dynamics. Descriptive statistics illustrate considerable variation in key economic indicators, with capital and financial development showing strong positive correlations with GDP. The Static Gravity Model and GMM results confirm the vital roles of capital, labor, financial development, and trade openness in driving economic performance, while digitalization and natural resources display limited or non-significant impacts. The 2SLS model further supports the robustness of these findings, highlighting the dominant influence of capital and labor despite the less pronounced effects of digitalization and natural resources. This study offers a comprehensive assessment of the factors shaping economic growth in the East Asia-Pacific region, providing valuable implications for policy and investment strategies.

• Item Type: MPRA Paper
• Language: English
• Keywords: Digitalization, Natural Resources, Trade Openness, Economic Growth, Panel Data Analysis, East Asia-Pacific Countries.
• Subjects: D - Microeconomics > D8 - Information, Knowledge, and Uncertainty > D83 - Search ; Learning ; Information and Knowledge ; Communication ; Belief ; Unawareness; F - International Economics > F1 - Trade > F10 - General; F - International Economics > F1 - Trade > F13 - Trade Policy ; International Trade Organizations; F - International Economics > F1 - Trade > F14 - Empirical Studies of Trade; L - Industrial Organization > L6 - Industry Studies: Manufacturing > L63 - Microelectronics ; Computers ; Communications Equipment; L - Industrial Organization > L8 - Industry Studies: Services > L86 - Information and Internet Services ; Computer Software; L - Industrial Organization > L9 - Industry Studies: Transportation and Utilities > L96 - Telecommunications; N - Economic History > N5 - Agriculture, Natural Resources, Environment, and Extractive Industries > N55 - Asia including Middle East; N - Economic History > N7 - Transport, Trade, Energy, Technology, and Other Services > N70 - General, International, or Comparative; N - Economic History > N7 - Transport, Trade, Energy, Technology, and Other Services > N75 - Asia including Middle East; O - Economic Development, Innovation, Technological Change, and Growth > O1 - Economic Development > O13 - Agriculture ; Natural Resources ; Energy ; Environment ; Other Primary Products; O - Economic Development, Innovation, Technological Change, and Growth > O2 - Development Planning and Policy > O24 - Trade Policy ; Factor Movement Policy ; Foreign Exchange Policy; O - Economic Development, Innovation, Technological Change, and Growth > O4 - Economic Growth and Aggregate Productivity > O47 - Empirical Studies of Economic Growth ; Aggregate Productivity ; Cross-Country Output Convergence; P - Economic Systems > P2 - Socialist Systems and Transitional Economies > P28 - Natural Resources ; Energy ; Environment; P - Economic Systems > P3 - Socialist Institutions and Their Transitions > P33 - International Trade, Finance, Investment, Relations, and Aid; P - Economic Systems > P4 - Other Economic Systems > P45 - International Trade, Finance, Investment, and Aid; P - Economic Systems > P4 - Other Economic Systems > P48 - Political Economy ; Legal Institutions ; Property Rights ; Natural Resources ; Energy ; Environment ; Regional Studies; Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q2 - Renewable Resources and Conservation > Q26 - Recreational Aspects of Natural Resources; Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q2 - Renewable Resources and Conservation > Q27 - Issues in International Trade; Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q3 - Nonrenewable Resources and Conservation > Q34 - Natural Resources and Domestic and International Conflicts

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