Digital Economy impact on development in Cambodia

Sophearom Chheang

Master's thesis

Abstract:

In recent years, the rapid advancement of digital technologies has transformed economies worldwide, ushering in the era of the digital economy. Cambodia embraces digitalization and information technology, with a growing interest in understanding the implications of the digital economy on the country's overall economic growth. This research aims to investigate the impact of the digital economy on Cambodia's economic development using quantitative econometric analysis. The study starts with a review of existing literature on the digital economy, economic growth, and the digitalization experiences of other countries. With this foundation, we compiled a comprehensive dataset that includes digital indicators (Mobile Cellular Subscriptions, Fix Broadband Subscription, Mobile Network Coverage) and macroeconomic variables for Cambodia (Capital and Labour). Econometric analysis OLS techniques have been employed in the model to measure the relationship between digital economy factors and Cambodia's GDP per capita output. The research aims to investigate the impact of digital on economic development reflected by GDP per capita. The analysis assessed the significance of digital infrastructure, capital, and labour force in driving economic growth in Cambodia. The result reveals that Digital infrastructure, foreign direct investment (FDI), and labour force participation significantly influence GDP per capita. The econometric model shows a statistically significant relationship between our independent (explainatory) variables and dependent (explained) variables. Overall, this research has shown the positive impact of digital economy on Cambodia's development. However, the digital infrastructure variable still needs to be improved and the negative relationship of Mobile Network Coverage has to be further investigated. The evidence-based can recommend that policymakers formulate effective policies and interventions that harness the digital economy's full potential for sustainable and equitable economic development in the country.

Keywords

Digital Technology, Digital Economy, Digitalization, Economic Development, Economic Growth, Digital Transformation, GDP, Sustainability

Language used: English

Date on which the thesis was submitted / produced: 28. 3. 2024

Thesis defence

• Supervisor: doc. Ing. Irena Benešová, Ph.D.
• Reader: Monika Hrstková, externi

Czech University of Life Sciences Prague

Faculty of Economics and Management

Master programme:
Economics and Management