Digital infrastructure and green energy in export diversification: evidence from post-soviet countries

Abstract

Export diversification plays a crucial role in today’s global world and world trade. This research is aimed at
studying the impact of digital infrastructure and renewable energy consumption on export diversification in 15 post-Soviet
countries. A fixed-effect regression model and standard errors robust against heteroskedasticity were used through panel
data. The ICT index, renewable energy consumption as a % of total energy consumption, FDI inflows as a % of GDP, and
European Union and Eurasian Economic Union memberships are used as independent variables for export diversification.
Results have shown that there is a positive and significant relationship between export diversification and digital
infrastructure. Developing the ICT sphere and making investments in the sector bring new export markets and, of course,
diversified exports of products. Also, the statistical significance of renewable energy consumption differs according to
different econometric models, the renewable energy consumption supports declining export concentration of selected
economies. These results show the importance of the integration of digital infrastructure and renewable energy in export
diversification to the countries and business owners. And, of course, it provides practical and theoretical policies for
innovations and economic integrations.