Bakari, Sayef (2024): The Role of Digitalization, Natural Resources, and Trade Openness in Driving Economic Growth: Fresh Insights from East Asia-Pacific Countries.
![]() |
PDF
MPRA_paper_121643.pdf Download (480kB) |
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 |
---|---|
Original Title: | The Role of Digitalization, Natural Resources, and Trade Openness in Driving Economic Growth: Fresh Insights from East Asia-Pacific Countries |
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 |
Item ID: | 121643 |
Depositing User: | Sayef Bakari |
Date Deposited: | 05 Aug 2024 20:54 |
Last Modified: | 05 Aug 2024 20:54 |
References: | Aghion, P., Akcigit, U., & Howitt, P. (2019). Innovation and Growth: The Schumpeterian Perspective. MIT Press. Aghion, P., Burgess, R., Rancière, R., & Quimbee, A. (2005). Entry and Innovation: Evidence from the United Kingdom. NBER Working Paper No. 11890. Akermi, N., Yedder, N. B., & Bakari, S. (2024). Impact of final consumption, domestic investment, exports, and imports on economic growth in Albania. Theoretical and Applied Economics, 31(1 (638), Spring), 231-252. Arendt, Ł. (2015). The digital economy, ICT and economic growth in the CEE countries. Olsztyn Economic Journal, 10(3), 247-262. Arslan, H. M., Khan, I., Latif, M. I., Komal, B., & Chen, S. (2022). Understanding the dynamics of natural resources rents, environmental sustainability, and sustainable economic growth: new insights from China. Environmental Science and Pollution Research, 29(39), 58746-58761. Asian Development Bank. (2021). Asian Development Outlook 2021: Financing a Green and Inclusive Recovery. Manila: ADB. Autor, D. H. (2015). Why Are There Still So Many Jobs? The History and Future of Workplace Automation. Journal of Economic Perspectives, 29(3), 3-30. Auty, R. M. (1993). Sustaining Development in Mineral Economies: The Resource Curse Thesis. Routledge. Bakari, S. (2016). Impact of Exports and Imports on Economic Growth in Canada: Empirical Analysis Based on Causality (No. 75910). University Library of Munich, Germany. Bakari, S. (2017). The Nexus between Export, Import, Domestic Investment and Economic Growth in Japan (No. 76110). University Library of Munich, Germany. Bakari, S. (2019). Innovation and Economic Growth: Does Internet Matter?. BİLTÜRK Journal of Economics and Related Studies, 3(2), 109-116. Bakari, S. (2022a). The Impact of Natural resources, CO2 Emission, Energy use, Domestic Investment, Innovation, Trade and Digitalization on Economic growth: Evidence from 52 African Countries (No. 114323). University Library of Munich, Germany. Bakari, S. (2022b). The impact of digitalization and patent on economic growth in Romania. Journal of Research, Innovation and Technologies, 1(1 (1)), 49-61. Bakari, S., & Krit, M. (2017). The Nexus between Exports, Imports and Economic Growth: Evidence from Mauritania. International Journal of Economics and Empirical Research, 5(1), 10-17. Bakari, S., & Mabrouki, M. (2016). The Relationship among Exports, Imports and Economic Growth in Turkey. University Library of Munich, Germany. Bakari, S., & Mabrouki, M. (2017). Impact of exports and imports on economic growth: New evidence from Panama. Journal of smart economic growth, 2(1), 67-79. Bakari, S., & Tiba, S. (2020). The Impact of Internet on economic growth in North Africa: New empirical and policy analysis. Journal of Applied Economic Sciences, 15(3), 605-616. Bakari, S., El Weriemmi, M., & Mabrouki, M. (2022b). The Impact of digitalization and trade openness on economic growth: new evidence from richest Asian countries. Journal of Research, Innovation and Technologies, 1(2), 7. Bakari, S., Fakraoui, N., & Mabrouki, M. (2020). The Contribution of Domestic Investment, Exports and Imports on Economic Growth: A Case Study of Peru (No. 99041). University Library of Munich, Germany. Bakari, S., Fakraoui, N., & Tiba, S. (2021). Domestic Investment, Export, Import and Economic Growth in Brazil: An Application of Vector Error Correction Model. Journal of Smart Economic Growth, 6(1), 31-48. Bakari, S., Mabrouki, M., & Othmani, A. (2018). The Six Linkages Between Foreign Direct Investment, Domestic Investment, Exports, Imports, Labor Force And Economic Growth: New Empirical And Policy Analysis From Nigeria. Journal of Smart Economic Growth, 3(1), 25-43. Bakari, S., Saaidia, F., & Soualhia, A. (2019). Evaluation of Trade Influence on Economic Growth in China: A Time Series Analysis. Journal of Smart Economic Growth, 4(3), 57-72. Bakari, S., Tiba, S., & Mabrouki, M. (2022a). An Exploratory Study of the Causality between Internet Use, Innovation, and Economic Growth in Tunisia: An indispensable Case Analysis. Journal of Economics and Financial Analysis, 6(1), 1-18. Baldwin, R. (2003). Openness and Growth: What's the Empirical Relationship? In Globalization, Growth, and Stability, University of Chicago Press. Ben-Salha, O., Dachraoui, H., & Sebri, M. (2021). Natural resource rents and economic growth in the top resource-abundant countries: a PMG estimation. Resources Policy, 74, 101229. Brynjolfsson, E., & McAfee, A. (2014). The Second Machine Age: Work, Progress, and Prosperity in a Time of Brilliant Technologies. W.W. Norton & Company. Cai, L., & Le, T. T. (2023). Natural resources and financial development: Role of corporate social responsibility on green economic growth in Vietnam. Resources Policy, 81, 103279. Cavallo, A., & Ghezzi, A. (2021). Economic growth: The role of digitalization and entrepreneurship. In European Conference on Innovation and Entrepreneurship (pp. 177-XIX). Academic Conferences International Limited. Cui, K., Li, X., & Li, G. (2023). What kind of fiscal policies and natural resources efficiency promotes green economic growth? Evidence from regression analysis. Resources Policy, 85, 103941. Dasgupta, P., & Mäler, K. G. (2004). The Environment and Emerging Development Issues. In Handbook of Environmental Economics, Vol. 1. Elsevier. De Prato, G., Nepelski, D., & Simon, J. P. (2015). Digital R&D – Europe. European Commission, Joint Research Centre, Institute for Prospective Technological Studies. Dollar, D., & Kraay, A. (2004). Trade, Growth, and Poverty. Economic Journal, 114(493), F22-F49. Edwards, S. (1998). Openness, Productivity, and Growth: What Do We Really Know? Economic Journal, 108(447), 383-398. Fetahi-Vehapi, M., Sadiku, L., & Petkovski, M. (2015). Empirical analysis of the effects of trade openness on economic growth: An evidence for South East European countries. Procedia Economics and Finance, 19, 17-26. Frankel, J. A., & Romer, D. (1999). Does Trade Cause Growth? American Economic Review, 89(3), 379-399. Goldin, C., & Katz, L. F. (2008). The Race between Education and Technology. Harvard University Press. Habibi, F., & Zabardast, M. A. (2020). Digitalization, education and economic growth: A comparative analysis of Middle East and OECD countries. Technology in Society, 63, 101370. Haider, Z., & Stern, N. (2018). The Relationship between Natural Resources and Economic Growth: A Meta-Analysis. World Development, 103, 212-227. Hao, X., Li, Y., Ren, S., Wu, H., & Hao, Y. (2023). The role of digitalization on green economic growth: Does industrial structure optimization and green innovation matter?. Journal of environmental management, 325, 116504. Haseeb, M., Kot, S., Hussain, H. I., & Kamarudin, F. (2021). The natural resources curse-economic growth hypotheses: Quantile–on–Quantile evidence from top Asian economies. Journal of cleaner production, 279, 123596. Hayat, A., & Tahir, M. (2021). Natural resources volatility and economic growth: evidence from the resource-rich region. Journal of Risk and Financial Management, 14(2), 84. Huchet‐Bourdon, M., Le Mouël, C., & Vijil, M. (2018). The relationship between trade openness and economic growth: Some new insights on the openness measurement issue. The World Economy, 41(1), 59-76. IMF. (2020). World Economic Outlook: A Long and Difficult Ascent. Washington, DC: International Monetary Fund. International Telecommunication Union (ITU). (2012). Impact of Broadband on the Economy. Keho, Y. (2017). The impact of trade openness on economic growth: The case of Cote d’Ivoire. Cogent Economics & Finance, 5(1), 1332820. Khan, Z., Hossain, M. R., Badeeb, R. A., & Zhang, C. (2023). Aggregate and disaggregate impact of natural resources on economic performance: role of green growth and human capital. Resources Policy, 80, 103103. Koutroumpis, P. (2009). The Economic Impact of Broadband on Growth: A Simultaneous Approach. Telecommunications Policy, 33(9), 471-485. Krugman, P. R. (1991). Geography and Trade. MIT Press. Kwakwa, P. A., Adzawla, W., Alhassan, H., & Achaamah, A. (2022). Natural resources and economic growth: does political regime matter for Tunisia?. Journal of Public Affairs, 22, e2707. Lechman, E., & Anacka, H. (2022). Digitalization process and its impact on economic growth: a panel data study for developing countries. In Digitalization and Economic Development (pp. 28-46). Routledge. Lederman, D., & Maloney, W. F. (2007). Natural Resources: Neither Curse nor Destiny. World Bank Publications. Mehlum, H., Moene, K., & Torvik, R. (2006). Institutions and the Resource Curse. Economics & Politics, 18(1), 1-25. Mishakov, V. Y., Daitov, V. V., & Gordienko, M. S. (2021). Impact of digitalization on economic sustainability in developed and developing countries. In Sustainable Development of Modern Digital Economy: Perspectives from Russian Experiences (pp. 265-274). Cham: Springer International Publishing. Mwananziche, J., Myovella, G., Karacuka, M., Haucap, J., & Moshi, G. (2023). Is digitalization a booster for economic growth in Africa? Short run and long run evidence from Tanzania. Telecommunications Policy, 47(10), 102679. Myovella, G., Karacuka, M., & Haucap, J. (2020). Digitalization and economic growth: A comparative analysis of Sub-Saharan Africa and OECD economies. Telecommunications Policy, 44(2), 101856. Nam, H. J., & Ryu, D. (2024). Does trade openness promote economic growth in developing countries?. Journal of International Financial Markets, Institutions and Money, 93, 101985. Nurdiana, E. D., Hariyani, H. F., & Boedirochminarni, A. (2023). The impact of digitalization and economic openness on economic growth in ASEAN countries. Jurnal Ekonomi & Studi Pembangunan, 24(2), 331-345. OECD. (2018). Economic Outlook for Southeast Asia, China and India 2018: Fostering Growth through Digitalization. Paris: OECD Publishing. OECD. (2021). OECD Digital Economy Outlook 2021. Paris: OECD Publishing. Omoke, P. C., & Opuala–Charles, S. (2021). Trade openness and economic growth nexus: Exploring the role of institutional quality in Nigeria. Cogent Economics & Finance, 9(1), 1868686. Oppong-Baah, T., Bo, Y., Twi-Brempong, C., Amoah, E. O., Prempeh, N. A., & Addai, M. (2022). The Impact of trade openness on economic growth: The case of Ghana and Nigeria. Journal of Human Resource and Sustainability Studies, 10(1), 142-160. Qiang, Q., & Jian, C. (2020). Natural resource endowment, institutional quality and China's regional economic growth. Resources Policy, 66, 101644. Rahim, S., Murshed, M., Umarbeyli, S., Kirikkaleli, D., Ahmad, M., Tufail, M., & Wahab, S. (2021). Do natural resources abundance and human capital development promote economic growth? A study on the resource curse hypothesis in Next Eleven countries. Resources, Environment and Sustainability, 4, 100018. Rodriguez, F., & Rodrik, D. (2001). Trade Policy and Economic Growth: A Skeptic's Guide to the Cross-National Evidence. NBER Working Paper No. 7081. Rosser, A. (2006). The Political Economy of the Resource Curse: A Literature Survey. Institute of Development Studies Working Paper. Solomon, E. M., & van Klyton, A. (2020). The impact of digital technology usage on economic growth in Africa. Utilities policy, 67, 101104. The World Bank. (2016). World Development Report 2016: Digital Dividends. Topcu, E., Altinoz, B., & Aslan, A. (2020). Global evidence from the link between economic growth, natural resources, energy consumption, and gross capital formation. Resources Policy, 66, 101622. UNCTAD. (2019). Digital Economy Report 2019: Value Creation and Capture – Implications for Developing Countries. New York: United Nations. World Bank. (2021). East Asia and Pacific Economic Update: Data for Better Lives. Washington, DC: World Bank. Xie, T., Xu, Y., & Li, Y. (2024). Nonlinear relationship between natural resources and economic growth: The role of frontier technology. Resources Policy, 90, 104831. Xu, X., Yu, W., Zhao, X., & Xu, W. (2023). Reassessing the linkage between natural resources and economic growth in China: Delving into the impacts of national resource taxes, renewable energy, financial advancements, and provincial fiscal expenditures. Resources Policy, 86, 104293. Yang, Y., & Khan, A. (2021). Exploring the role of finance, natural resources, and governance on the environment and economic growth in South Asian countries. Environmental Science and Pollution Research, 28(36), 50447-50461. Yedder, N. B., El Weriemmi, M., & Bakari, S. (2023). The Impact of Domestic Investment and Trade on Economic Growth in North Africa Countries: New Evidence from Panel CS-ARDL Model. EuroEconomica, 42(2), 22-41. |
URI: | https://mpra.ub.uni-muenchen.de/id/eprint/121643 |