The impacts of globalization, institutional quality, and digital technology innovation on OECD countries sustainable digital economic growth

Citation

Ahmed, Elsadig Musa and Elfaki, Khalid Eltayeb and Bashir, Mohamed Sharif (2026) The impacts of globalization, institutional quality, and digital technology innovation on OECD countries sustainable digital economic growth. Social Sciences & Humanities Open, 13. p. 102560. ISSN 25902911

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Abstract

This study examines the effects of the digital economy components (digital technology innovation), institutional quality, and globalization on achieving sustainable digital economic growth within the Organization for Eco nomic Cooperation and Development. Using panel data from 2002 to 2020 and applying the Generalized Method of Moments, the cointegration results confirm the presence of cointegration among all variables. The empirical findings reveal that digital technology innovation and institutional quality significantly enhance economic growth, with positive contributions of 0.014% and 0.011%, respectively. Meanwhile, globalization contributes by 0.533%. The study concludes that technological innovation, institutional quality, and globalization played a significant role in the country's economic expansion. The green total factor productivity shows a positive contribution. The Dumitrescu-Hurlin panel causality test results indicate two-way relationships among economic growth (GDP), labor, capital, institutional quality, and globalization. According to this analysis, selected nations can achieve the Sustainable Development Goals by implementing the necessary measures to achieve a balanced approach to sustainability across economics, society, and the environment. This can be accomplished through digital technology innovations, green technologies, and robust institutions. Integrating globalization and digi talization through increased investment in digital infrastructure would enhance access to innovative technologies and connectivity, while additionally improving efficiency.

Item Type: Article
Uncontrolled Keywords: Sustainable economic growth
Subjects: H Social Sciences > HD Industries. Land use. Labor > HD72-88 Economic growth, development, planning
Divisions: Faculty of Business (FOB)
Depositing User: Ms Rosnani Abd Wahab
Date Deposited: 03 Mar 2026 01:56
Last Modified: 03 Mar 2026 01:56
URII: http://shdl.mmu.edu.my/id/eprint/15424

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