THE ROLE OF DIGITAL INFRASTRUCTURE IN PROMOTING GREEN ECONOMIC GROWTH: EVIDENCE FROM CENTRAL ASIAN ECONOMIES
DOI:
https://doi.org/10.5281/zenodo.20963744Keywords:
digital infrastructure; green economic growth; adjusted net savings; Central Asia; sustainable development; panel data analysisAbstract
Digital infrastructure has emerged as a critical driver of economic transformation and sustainable
development in both developed and developing economies. However, empirical evidence regarding its
contribution to green economic growth remains limited, particularly in the context of Central Asia. This study
examines the impact of digital infrastructure on green economic growth in four Central Asian economies over
the period 2006–2021. A composite Digital Infrastructure Index (DII) is constructed using Principal Component
Analysis based on Internet usage, mobile subscriptions, and broadband penetration indicators. Green economic
growth is measured through adjusted net savings, which captures the sustainability dimension of economic
development by accounting for investments in human capital, natural resource depletion, and environmental
damages. The analysis employs panel econometric techniques, including fixed-effects and random-effects
estimators, with model selection guided by the Hausman specification test. The empirical results indicate that
the random-effects model is the most appropriate specification. The findings reveal that digital infrastructure
exerts a statistically significant negative effect on adjusted net savings, suggesting that the current phase of
digital expansion in Central Asia has not yet translated into improvements in sustainable economic performance.
GDP growth and trade openness also demonstrate significant negative effects on adjusted net savings, while
foreign direct investment does not exhibit a statistically significant impact. These results imply that digital
transformation alone is insufficient to promote green economic growth unless accompanied by effective
environmental policies, resource-efficient technologies, and sustainability-oriented development strategies.
The study contributes to the growing literature on digitalization and sustainability by providing new evidence
from an underexplored region and highlighting the complex relationship between technological advancement
and sustainable development.
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