Digital Economy as a Determinant of Economic Growth and Its Impact on Gross Capital Formation: Indonesia and Thailand

Shedriko Shedriko; Heru Subiyantoro; Muhammad Rozali

doi:10.55927/eajmr.v4i10.406

Authors

Shedriko Shedriko Universitas Indraprasta PGRI
Heru Subiyantoro Universitas Borobudur
Muhammad Rozali Universitas Borobudur

DOI:

https://doi.org/10.55927/eajmr.v4i10.406

Keywords:

Economic, Growth, Indonesia, Thailand, Digital

Abstract

The economic growth of Indonesia and Thailand, as two large ASEAN member states, over the past 30 years (1994-2023) has tended to fluctuate, with a dominant upward trend since the early 2000s, both in terms of digital economy and economic performance. This study aims to verify the accuracy of the economic model proposed by Sahoo et al (2021) in formulating digital economic performance, comprising 8 variables: internet density, mobile density, per capita electricity power consumption, research and development, exports, expected years of schooling, foreign direct investment, and the consumer price index, as factors influencing economic growth and its impact on gross capital formation in both countries. Using the Two-Stage Least Squares (2SLS) model 1 and Ordinary Least Squares (OLS) model 2, better values were obtained, along with significant proof, of Sahoo's model.

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