The Influence Of Digital Technology On The Economy In ASEAN Countries

Abstract

The development of digital technology continues to revolutionize from year to year, starting from the development of computers, the internet, world wide websites, mobile application devices and now the era of big data and artificial intelligence. The existence of technological developments changes and affects aspects of people's lives, industries and countries. This study aims to determine the effect of ICT, Innovation, E-commerce and Foreign Direct Investment on the Economy in ASEAN countries in 2017-2023. This study uses a quantitative approach and research data using secondary data from 7 (seven) ASEAN countries namely Indonesia, Malaysia, Singapore, Thailand, the Philippines, Vietnam and Cambodia. The results of this study using the Fixed Effect Model (FEM) panel data show that partially the ICT variable (X1) is positive but insignificant to the economy in ASEAN while the Innovation variable (X2) and E-commerce (X3) show a positive and significant value to the economy in ASEAN countries. The Foreign Direct Investment variable (X4) shows a negative and insignificant effect on the economy in ASEAN countries in 2017-2023. Simultaneously, the combined variables show a significant influence on the economy in ASEAN countries.