Digital Transformation as a Demographic and Economic Integrated Policy for Southeast Asian Developing Countries

Rhee, Tae-hwan, Jacob Wood, Jungsuk Kim. Digital Transformation as a Demographic and Economic Integrated Policy for Southeast Asian Developing Countries. Sustainability 2022, 14(5), 2857. https://doi.org/10.3390/su14052857

19 Pages Posted: 4 Apr 2022

See all articles by Tae-hwan Rhee

Tae-hwan Rhee

Sejong University, Department of Economics

Jacob Wood

James Cook University

Jungsuk Kim

Sogang University - Institute of International and Area Studies

Date Written: March 1, 2022

Abstract

The age of Southeast Asian developing countries’ populations is still younger than that of other regions around the world. However, recent statistics show that the tide is now turning in this regard, with many of these populations beginning to age at rates much faster than many other countries. Such developments require immediate policy action in order to create a sustainable path towards economic growth before demographic changes become less benign in the medium term. In this study, we discuss the economic consequences of population aging, increases in the economic support ratio, and a declining potential growth rate. We argue that it is essential for Southeast Asian developing countries to raise total factor productivity (TFP) growth rates so as to achieve more sustainable economic outcomes. By conducting panel regressions using data from 82 countries across the 1996–2019 study period, our study shows that increasing research and development (R&D) spending and the facilitation of structural changes that transform the digital economy landscape are key policy options that promote TFP growth.

Keywords: Southeast Asian developing countries, demographic transition, sustainable economic growth, digital economy

JEL Classification: J18, O47

Suggested Citation

Rhee, Tae-hwan and Wood, Jacob and Kim, Jungsuk, Digital Transformation as a Demographic and Economic Integrated Policy for Southeast Asian Developing Countries (March 1, 2022). Rhee, Tae-hwan, Jacob Wood, Jungsuk Kim. Digital Transformation as a Demographic and Economic Integrated Policy for Southeast Asian Developing Countries. Sustainability 2022, 14(5), 2857. https://doi.org/10.3390/su14052857, Available at SSRN: https://ssrn.com/abstract=4056931

Tae-hwan Rhee (Contact Author)

Sejong University, Department of Economics ( email )

209 Neungdong-ro, Gwangjin-gu
Seoul, 05006
Korea, Republic of (South Korea)
+82-2-6935-2474 (Phone)

HOME PAGE: http://home.sejong.ac.kr/~thrhee/

Jacob Wood

James Cook University ( email )

Cairns, 4878
Australia

Jungsuk Kim

Sogang University - Institute of International and Area Studies ( email )

35 Baekbeom-ro
Mapo-gu
Seoul, Seoul 121-742
Korea, Republic of (South Korea)

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