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Digital Connectivity and Socio-Economic Development: Evidence from South Asia
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This study provides insights into the factors impacting Internet accessibility and adoption across the South Asian Group of Countries (SAGC) by examining the drivers of Individuals using the Internet (IUI) throughout the region. This research examines data from 2001 to 2025 using fixed and random effect models to reveal complex links between social, technological, and economic aspects and IUI. The results indicate that although GDP per capita (GDPPC) exhibits a positive correlation with IUI, the effect is not statistically significant. This suggests that variables other than economic growth are required to boost individuals using Internet. On the other hand, Research and Development Expenditures (R&DEXP) show a strong positive correlation with IUI, underscoring the significance of financial investments in infrastructure development and technological advancements to support internet accessibility. The study points out the significance of targeted policy interventions aimed at reducing income disparities, promoting research and development, and enhancing digital literacy to foster universal and sustainable internet access across SAGC countries, thereby facilitating socio-economic development and digital inclusion within the region's borders. According to the study, income inequality (II), as measured by the Gini Index (GI) and Poverty Head Count Ratio (PHCR), additionally demonstrates a negative connection with IUI. These findings suggest that socioeconomic disparities may pose barriers to equitable internet access within the SAGC.
References
Afzal, A., Firdousi, S. F., Waqar, A., & Awais, M. (2022). The influence of Internet penetration on poverty and income inequality. SAGE Open, 12(3), 21582440221116104. https://doi.org/10.1177/21582440221116104
Ahmed, K., Bhattacharya, M., Qazi, A. Q., & Ghumro, N. A. (2021). Transport infrastructure and industrial output in Pakistan: An empirical investigation. Research in Transportation Economics, 90, 101040. https://doi.org/10.1016/j.retrec.2021.101040
Ali, H., Naz, A., & Andleeb, U. (2017). Gender poverty and economic growth nexus in poor and non-poor households: An empirical analysis. European Online Journal of Natural and Social Sciences, 7(1), 177–192.
Atkin, D. J., Hunt, D. S., & Lin, C. A. (2015). Diffusion theory in the new media environment: Toward an integrated technology adoption model. Mass Communication and Society, 18(5), 623–650. https://doi.org/10.1080/15205436.2015.1066014
Bilan, Y., Streimikiene, D., Vasylieva, T., Lyulyov, O., Pimonenko, T., & Pavlyk, A. (2019). Linking between renewable energy, CO2 emissions, and economic growth: Challenges for candidates and potential candidates for the EU membership. Sustainability, 11(6), 1528. https://doi.org/10.3390/su11061528
Cheng, C. Y., Chien, M. S., & Lee, C. C. (2021). ICT diffusion, financial development, and economic growth: An international cross-country analysis. Economic Modelling, 94, 662–671. https://doi.org/10.1016/j.econmod.2020.02.008
Dewan, S., & Kraemer, K. L. (2000). Information technology and productivity: Evidence from country-level data. Management Science, 46(4), 548–562. https://doi.org/10.1287/mnsc.46.4.548.12057
García-Avilés, J. A. (2020). Diffusion of innovation. The International Encyclopedia of Media Psychology, 1–8. https://doi.org/10.1002/9781119011071.iemp0137
Haenssgen, M. J., & Ariana, P. (2017). The social implications of technology diffusion: Uncovering the unintended consequences of people’s health-related mobile phone use in rural India and China. World Development, 94, 286–304. https://doi.org/10.1016/j.worlddev.2017.01.014
Haenssgen, M. J. (2018). The struggle for digital inclusion: Phones, healthcare, and marginalization in rural India. World Development, 104, 358–374. https://doi.org/10.1016/j.worlddev.2017.12.023
International Telecommunication Union. (2019). Individuals using the Internet, 2005–2019. ITU.
Kaleem, S., Mir, A., & Idrees, T. (2018). Impact of infrastructure and institutional quality on industrial sector of Pakistan. Pakistan Economic Review, 1(2), 70–82.
Kallal, R., Haddaji, A., & Ftiti, Z. (2021). ICT diffusion and economic growth: Evidence from the sectorial analysis of a periphery country. Technological Forecasting and Social Change, 162, 120403. https://doi.org/10.1016/j.techfore.2020.120403
Kapoor, K. K., Dwivedi, Y. K., & Williams, M. D. (2014). Rogers’ innovation adoption attributes: A systematic review and synthesis of existing research. Information Systems Management, 31(1), 74–91. https://doi.org/10.1080/10580530.2014.854103
Kocsis, D., & Xiong, J. (2025). A divide quantified—exploring the relationship between ICT infrastructure diffusion and income inequality. Journal of Electronic Business & Digital Economics.
Lawson-Borders, G. (2003). Integrating new media and old media: Seven observations of convergence as a strategy for best practices in media organizations. International Journal on Media Management, 5(2), 91–99.
Lee, J. W., & Brahmasrene, T. (2014). ICT, CO2 emissions and economic growth: Evidence from a panel of ASEAN. Global Economic Review, 43(2), 93–109. https://doi.org/10.1080/1226508X.2014.917803
Lievrouw, L. A. (2006). New media design and development: Diffusion of innovations v. social shaping of technology. In The handbook of new media (pp. 246–265).
Majeed, M. T., & Ayub, T. (2018). Information and communication technology (ICT) and economic growth nexus: A comparative global analysis. Pakistan Journal of Commerce and Social Sciences, 12(2), 443–476.
Niebel, T. (2018). ICT and economic growth—Comparing developing, emerging and developed countries. World Development, 104, 197–211. https://doi.org/10.1016/j.worlddev.2017.11.024
Noh, Y. H., & Yoo, K. (2008). Internet, inequality and growth. Journal of Policy Modeling, 30(6), 1005–1016. https://doi.org/10.1016/j.jpolmod.2007.06.016
OECD. (2001). Understanding the digital divide. OECD Publishing. https://doi.org/10.1787/236405667766
Papaioannou, S. K., & Dimelis, S. P. (2007). Information technology as a factor of economic development: Evidence from developed and developing countries. Economics of Innovation and New Technology, 16(3), 179–194. https://doi.org/10.1080/10438590600661889
Pradhan, R. P., Arvin, M. B., Nair, M., Bennett, S. E., & Hall, J. H. (2019). The information revolution, innovation diffusion and economic growth: An examination of causal links in European countries. Quality & Quantity, 53, 1529–1563. https://doi.org/10.1007/s11135-018-0826-2
Rogers, M. (1998). The definition and measurement of innovation (Melbourne Institute Working Paper No. 10/98). Melbourne Institute of Applied Economic and Social Research.
Rohman, I. K., & Bohlin, E. (2014). Decomposition analysis of the telecommunications sector in Indonesia: What does the cellular era shed light on? Telecommunications Policy, 38(3), 248–263. https://doi.org/10.1016/j.telpol.2013.10.006
Sabi, H. M., Uzoka, F. M. E., Langmia, K., Njeh, F. N., & Tsuma, C. K. (2018). A cross-country model of contextual factors impacting cloud computing adoption at universities in sub-Saharan Africa. Information Systems Frontiers, 20(6), 1381–1404. https://doi.org/10.1007/s10796-017-9739-1
Taylor, E. (2018). Bridging the digital divide: Infrastructure, skills and women’s empowerment.
Toader, E., Firtescu, B. N., Roman, A., & Anton, S. G. (2018). Impact of information and communication technology infrastructure on economic growth: An empirical assessment for the EU countries. Sustainability, 10(10), 3750. https://doi.org/10.3390/su10103750
United Nations Department of Economic and Social Affairs. (2025). World social report 2025: Reconsidering rural development. United Nations.
Wei, K., Teo, H., Chan, H., & Tan, B. C. Y. (2011). Conceptualizing and testing a social cognitive model of the digital divide. Information Systems Research, 22(1), 170–187. https://doi.org/10.1287/isre.1090.0273
Inverge Consultancy
Title: Digital Connectivity and Socio-Economic Development: Evidence from South Asia
Description:
This study provides insights into the factors impacting Internet accessibility and adoption across the South Asian Group of Countries (SAGC) by examining the drivers of Individuals using the Internet (IUI) throughout the region.
This research examines data from 2001 to 2025 using fixed and random effect models to reveal complex links between social, technological, and economic aspects and IUI.
The results indicate that although GDP per capita (GDPPC) exhibits a positive correlation with IUI, the effect is not statistically significant.
This suggests that variables other than economic growth are required to boost individuals using Internet.
On the other hand, Research and Development Expenditures (R&DEXP) show a strong positive correlation with IUI, underscoring the significance of financial investments in infrastructure development and technological advancements to support internet accessibility.
The study points out the significance of targeted policy interventions aimed at reducing income disparities, promoting research and development, and enhancing digital literacy to foster universal and sustainable internet access across SAGC countries, thereby facilitating socio-economic development and digital inclusion within the region's borders.
According to the study, income inequality (II), as measured by the Gini Index (GI) and Poverty Head Count Ratio (PHCR), additionally demonstrates a negative connection with IUI.
These findings suggest that socioeconomic disparities may pose barriers to equitable internet access within the SAGC.
References
Afzal, A.
, Firdousi, S.
F.
, Waqar, A.
, & Awais, M.
(2022).
The influence of Internet penetration on poverty and income inequality.
SAGE Open, 12(3), 21582440221116104.
https://doi.
org/10.
1177/21582440221116104
Ahmed, K.
, Bhattacharya, M.
, Qazi, A.
Q.
, & Ghumro, N.
A.
(2021).
Transport infrastructure and industrial output in Pakistan: An empirical investigation.
Research in Transportation Economics, 90, 101040.
https://doi.
org/10.
1016/j.
retrec.
2021.
101040
Ali, H.
, Naz, A.
, & Andleeb, U.
(2017).
Gender poverty and economic growth nexus in poor and non-poor households: An empirical analysis.
European Online Journal of Natural and Social Sciences, 7(1), 177–192.
Atkin, D.
J.
, Hunt, D.
S.
, & Lin, C.
A.
(2015).
Diffusion theory in the new media environment: Toward an integrated technology adoption model.
Mass Communication and Society, 18(5), 623–650.
https://doi.
org/10.
1080/15205436.
2015.
1066014
Bilan, Y.
, Streimikiene, D.
, Vasylieva, T.
, Lyulyov, O.
, Pimonenko, T.
, & Pavlyk, A.
(2019).
Linking between renewable energy, CO2 emissions, and economic growth: Challenges for candidates and potential candidates for the EU membership.
Sustainability, 11(6), 1528.
https://doi.
org/10.
3390/su11061528
Cheng, C.
Y.
, Chien, M.
S.
, & Lee, C.
C.
(2021).
ICT diffusion, financial development, and economic growth: An international cross-country analysis.
Economic Modelling, 94, 662–671.
https://doi.
org/10.
1016/j.
econmod.
2020.
02.
008
Dewan, S.
, & Kraemer, K.
L.
(2000).
Information technology and productivity: Evidence from country-level data.
Management Science, 46(4), 548–562.
https://doi.
org/10.
1287/mnsc.
46.
4.
548.
12057
García-Avilés, J.
A.
(2020).
Diffusion of innovation.
The International Encyclopedia of Media Psychology, 1–8.
https://doi.
org/10.
1002/9781119011071.
iemp0137
Haenssgen, M.
J.
, & Ariana, P.
(2017).
The social implications of technology diffusion: Uncovering the unintended consequences of people’s health-related mobile phone use in rural India and China.
World Development, 94, 286–304.
https://doi.
org/10.
1016/j.
worlddev.
2017.
01.
014
Haenssgen, M.
J.
(2018).
The struggle for digital inclusion: Phones, healthcare, and marginalization in rural India.
World Development, 104, 358–374.
https://doi.
org/10.
1016/j.
worlddev.
2017.
12.
023
International Telecommunication Union.
(2019).
Individuals using the Internet, 2005–2019.
ITU.
Kaleem, S.
, Mir, A.
, & Idrees, T.
(2018).
Impact of infrastructure and institutional quality on industrial sector of Pakistan.
Pakistan Economic Review, 1(2), 70–82.
Kallal, R.
, Haddaji, A.
, & Ftiti, Z.
(2021).
ICT diffusion and economic growth: Evidence from the sectorial analysis of a periphery country.
Technological Forecasting and Social Change, 162, 120403.
https://doi.
org/10.
1016/j.
techfore.
2020.
120403
Kapoor, K.
K.
, Dwivedi, Y.
K.
, & Williams, M.
D.
(2014).
Rogers’ innovation adoption attributes: A systematic review and synthesis of existing research.
Information Systems Management, 31(1), 74–91.
https://doi.
org/10.
1080/10580530.
2014.
854103
Kocsis, D.
, & Xiong, J.
(2025).
A divide quantified—exploring the relationship between ICT infrastructure diffusion and income inequality.
Journal of Electronic Business & Digital Economics.
Lawson-Borders, G.
(2003).
Integrating new media and old media: Seven observations of convergence as a strategy for best practices in media organizations.
International Journal on Media Management, 5(2), 91–99.
Lee, J.
W.
, & Brahmasrene, T.
(2014).
ICT, CO2 emissions and economic growth: Evidence from a panel of ASEAN.
Global Economic Review, 43(2), 93–109.
https://doi.
org/10.
1080/1226508X.
2014.
917803
Lievrouw, L.
A.
(2006).
New media design and development: Diffusion of innovations v.
social shaping of technology.
In The handbook of new media (pp.
246–265).
Majeed, M.
T.
, & Ayub, T.
(2018).
Information and communication technology (ICT) and economic growth nexus: A comparative global analysis.
Pakistan Journal of Commerce and Social Sciences, 12(2), 443–476.
Niebel, T.
(2018).
ICT and economic growth—Comparing developing, emerging and developed countries.
World Development, 104, 197–211.
https://doi.
org/10.
1016/j.
worlddev.
2017.
11.
024
Noh, Y.
H.
, & Yoo, K.
(2008).
Internet, inequality and growth.
Journal of Policy Modeling, 30(6), 1005–1016.
https://doi.
org/10.
1016/j.
jpolmod.
2007.
06.
016
OECD.
(2001).
Understanding the digital divide.
OECD Publishing.
https://doi.
org/10.
1787/236405667766
Papaioannou, S.
K.
, & Dimelis, S.
P.
(2007).
Information technology as a factor of economic development: Evidence from developed and developing countries.
Economics of Innovation and New Technology, 16(3), 179–194.
https://doi.
org/10.
1080/10438590600661889
Pradhan, R.
P.
, Arvin, M.
B.
, Nair, M.
, Bennett, S.
E.
, & Hall, J.
H.
(2019).
The information revolution, innovation diffusion and economic growth: An examination of causal links in European countries.
Quality & Quantity, 53, 1529–1563.
https://doi.
org/10.
1007/s11135-018-0826-2
Rogers, M.
(1998).
The definition and measurement of innovation (Melbourne Institute Working Paper No.
10/98).
Melbourne Institute of Applied Economic and Social Research.
Rohman, I.
K.
, & Bohlin, E.
(2014).
Decomposition analysis of the telecommunications sector in Indonesia: What does the cellular era shed light on? Telecommunications Policy, 38(3), 248–263.
https://doi.
org/10.
1016/j.
telpol.
2013.
10.
006
Sabi, H.
M.
, Uzoka, F.
M.
E.
, Langmia, K.
, Njeh, F.
N.
, & Tsuma, C.
K.
(2018).
A cross-country model of contextual factors impacting cloud computing adoption at universities in sub-Saharan Africa.
Information Systems Frontiers, 20(6), 1381–1404.
https://doi.
org/10.
1007/s10796-017-9739-1
Taylor, E.
(2018).
Bridging the digital divide: Infrastructure, skills and women’s empowerment.
Toader, E.
, Firtescu, B.
N.
, Roman, A.
, & Anton, S.
G.
(2018).
Impact of information and communication technology infrastructure on economic growth: An empirical assessment for the EU countries.
Sustainability, 10(10), 3750.
https://doi.
org/10.
3390/su10103750
United Nations Department of Economic and Social Affairs.
(2025).
World social report 2025: Reconsidering rural development.
United Nations.
Wei, K.
, Teo, H.
, Chan, H.
, & Tan, B.
C.
Y.
(2011).
Conceptualizing and testing a social cognitive model of the digital divide.
Information Systems Research, 22(1), 170–187.
https://doi.
org/10.
1287/isre.
1090.
0273.
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