The Role of Public Policy and Digital Connectivity in Driving GDP Growth: A Cross-Country Study of Emerging Economies

Abstract

Despite extensive research on the relationship between digitalization and economic development, existing studies have largely examined digital connectivity and public policy as separate determinants of economic performance. Moreover, comparative evidence from emerging economies remains limited. This study investigates the roles of digital connectivity and public policy performance in shaping economic outcomes across 21 emerging Asian economies during the period 2018–2023. Using secondary data from the World Development Indicators and DataReportal, the study employs a composite Government Policy Index and estimates a panel regression model using the Panel-Corrected Standard Errors (PCSE) approach. The results reveal that internet penetration, internet speed, and internet security are positively and significantly associated with GDP per capita. In contrast, cellular connectivity exhibits a significant negative relationship with GDP per capita, suggesting that basic mobile access alone may be insufficient to support higher-value economic activities. The findings further indicate that public policy performance has a substantial positive effect on economic outcomes, highlighting the importance of effective governance, public service provision, and infrastructure development in supporting growth. The estimated model explains a considerable proportion of cross-country variation in GDP per capita, demonstrating the relevance of both digital and institutional factors in emerging economies. This study contributes to the literature by integrating digital connectivity indicators and public policy performance within a unified analytical framework and providing comparative evidence from emerging Asian economies. The findings suggest that investments in high-quality digital infrastructure should be complemented by effective public policies to foster sustainable and inclusive economic development.