The Impact of Digital Economy and Net Export of Goods and Services Towards Employment in the Selected Southeast Asia Countries
Keywords:
Digital economy, ASEAN, export, employment
Abstract
The digital economy is rapidly growing and transforming the way people work and do business globally. This growth has a significant impact on employment in the Association of Southeast Asian Nations (ASEAN) countries. This study aimed to examine the impact of the digital economy and net export on employment in selected ASEAN members, Malaysia, Indonesia, Singapore, and Thailand. Sample years were extracted from 1991 to 2021 and the panel data regression method was applied in this study. The result of this study showed that the digital economy; fixed broadband subscription (LBROAD), internet users (LUSER), and net export (LEXP01) had a significant influence on employment (LTEMP).
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References
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Wang, F., Guo, B., Wang, Z., & Wu, Y. (2023). The impact of the digital economy on the export competitiveness of China’s manufacturing industry. Mathematical Biosciences and Engineering, 20(4), 7253-7272.
Wooldridge, J. M. (2002). Econometric analysis of cross section and panel data MIT press. Cambridge, MA, 108(2), 245-254.
Wu, B., & Yang, W. (2022). Empirical test of the impact of the digital economy on China’s employment structure. Finance Research Letters, 49, 103047. https://doi.org/10.1016/j.frl.2022.103047
Xia, T., & Pei, J. (2021). The Impact of Digital Economy on Employment—Thinking Based on the Epidemic Situation in 2020. E3S Web of Conferences, 235(03034), 03034. https://doi.org/10.1051/e3sconf/202123503034
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Zhang, L., Pan, A., Feng, S., & Qin, Y. (2022). Digital economy, technological progress, and city export trade. PloS one, 17(6), e0269314.
Zuo, G. W. (2021). Wired and Hired: Employment Effects of Subsidized Broadband Internet for Low-Income Americans. American Economic Journal: Economic Policy, 13(3), 447–482. https://doi.org/10.1257/pol.2019064
Artuc, Gladys, lopez-Acevedo, Raymond Robertson, and Daniel Samaan, (2019). Exports to Jobs: Boosting the Gains from Trade in South Asia. South Asia Development Forum. Washington, DC. Doi:10.1596/978-1-4648-1248-4. License: Creative Commons Attribution CC BY 3.0 IGO
ASEAN. (2020). Trade In Goods. Asean.org. https://asean.org/our-communities/economic-community/trade-in-goods/
Bello, G., & Perez, A. J. (2019, April). Adapting financial technology standards to blockchain platforms. In Proceedings of the 2019 ACM Southeast Conference (pp. 109-116).
Berman, E., Bound, J., & Machin, S. (1998). Implications of skill-biased technological change: international evidence. The quarterly journal of economics, 113(4), 1245-1279.
Bertani, F., Raberto, M., & Teglio, A. (2020). The productivity and unemployment effects of the digital transformation: an empirical and modeling assessment. Review of Evolutionary Political Economy, 1(3), 329–355. https://doi.org/10.1007/s43253-020-00022-3
Beck, N., & Katz, J. N. (1995). What to do (and not to do) with time-series cross-section data. American Political Science Review, 89(3), 634-647.
Cohn, J. (2013). The robot will see you now, The Atlantic, 20 February.
Comin, D., Hobijn, B. & Rovito, E. Technology usage lags. J Econ Growth 13, 237–256 (2008). https://doi.org/10.1007/s10887-008-9035-5
Conway Jr, R. S. (2022). Economic Base Theory of Regional Growth. In Empirical Regional Economics: Economic Base Theory, Models and Applications (pp. 3-21). Cham: Springer International Publishing.
Coovert, M. D., & Thompson, L. F. (2014). Toward a synergistic relationship between psychology and technology. Chapter 1 (pg 1) in the Psychology of Workplace Technology.
Edrak, B., Nor, Z. M., & Shaik, A. R. (2022). The Readiness of Malaysia Digital Economy: A Study of Three Government Policies from 1991 to 2020. International Journal of Economics and Finance, 14(12), 84. https://doi.org/10.5539/ijef.v14n12p84
European Commission (EC). 2010. New skills for new jobs: Action now, report by the Expert Group, Feb. (Brussels)
Filippi, E., Bannò, M., & Trento, S. (2023). Automation technologies and their impact on employment: A review, synthesis, and future research agenda. Technological Forecasting and Social Change, 191, 122448. https://doi.org/10.1016/j.techfore.2023.122448
Frey, C.B. and M.A. Osborne (2013). The Future of Employment: How Susceptible are Jobs to Computerization?, Technological Forecasting and Social Change, 114, 254-280.
Gavurova, B., Ivankova, V., Rigelsky, M., P?ívarová, M. (2020). Relations Between Tourism Spending and Global Competitiveness –an Empirical Study in Developed OECD Countries. Journal of Tourism and Services, 21(11), 38-54. doi: 10.29036/jots. v11i21.175
Geraci, A., Nardotto, M., Reggiani, T., & Sabatini, F. (2022). Broadband Internet and social capital. Journal of Public Economics, 206, 104578. https://doi.org/10.1016/j.jpubeco.2021.104578
Handoyo, R. D., Sugiharti, L., & Padilla, M. A. E. (2021). Trade Creation And Trade Diversion Effects: The Case Of The ASEAN Plus Six Free Trade Area. Buletin Ekonomi Moneter Dan Perbankan, 24(1), 93–118. https://doi.org/10.21098/bemp.v24i1.1163
Heise, A. (2009). A Post Keynesian theory of economic policy—filling a void. Journal of Post Keynesian Economics, 31(3), 383-401.
Hsieh, E. W.-T., & Goel, R. K. (2019). Internet use and labor productivity growth: recent evidence from the U.S. and other OECD countries. NETNOMICS: Economic Research and Electronic Networking, 20(2-3), 195–210. https://doi.org/10.1007/s11066-019-09135-2
International Labor Organization, (2015). World Employment and Social Outlook: The Changing Nature of Jobs. (2015, May 19). Www.ilo.org. https://www.ilo.org/global/research/global-reports/weso/2015-changing-nature-of-jobs/WCMS_368626/lang--en/index.htm
Kok, R., & Acikgoz Ersoy, B. (2009). Analyses of FDI determinants in developing countries. International journal of social economics, 36(1/2), 105-123.
Kolko, J. (2012). Broadband and local growth. J Urb Econ 71(1), 100–113
Koutroumpis, P. (2019). The economic impact of broadband: Evidence from OECD countries. Technological Forecasting and Social Change, 148, 119719. https://doi.org/10.1016/j.techfore.2019.119719
Kozo Kiyota (2016); Exports and Employment in China, Indonesia, Japan, and Korea. Asian Economic Papers; 15(1), 57–72. doi: https://doi.org/10.1162/ASEP_a_00402
Kwan, C.H. (1994), Economic Interdependence in the Asia-Pacific Region: Towards a Yen Bloc, Routledge, and London.
Li, Y., & Wang, Y. (2021). The impact of exports on employment in the European Union and China: A comparative analysis. Journal of Economic Structures, 10(1), 1-18.
Liu, Y., Wang, Y., & Li, Y. (2022). A Study on the Relationship between Export Trade and Employment Level in China’s Border Regions. Francis Academic Press.
Mahadeva, L., & Robinson, P. (2004). Unit root testing to help model building. London: Centre for Central Banking Studies, Bank of England.
Mohler, L., Weder, R., & Wyss, S. (2018). International trade and unemployment: towards an investigation of the Swiss case. Swiss Journal of Economics and Statistics, 154(1). https://doi.org/10.1186/s41937-017-0006-7
Muhyi, S. N. A., Omar, S. I., & Adnan, S. F. (2023). The Drivers Force The Gig Workers Into Gig Economy: The Case Of Malaysia. Journal of Business And Social Development, 11(1), 1–12. Https://Doi.Org/10.46754/Jbsd.2023.03.001
Nagam, V.M., (2023) Internet use, users, and cognition: on the cognitive relationships between Internet-based technology and Internet users. BMC Psychol 11, 82. https://doi.org/10.1186/s40359-023-01041-5
Nourafkan, N. J., & Tanova, C. (2023). Employee perceptions of decent work: a systematic literature review of quantitative studies. Current Psychology. https://doi.org/10.1007/s12144-023-04837-1
Nguyen, H. (2023, March 10). ASEAN Digital Trade Journey – Opportunities, Challenges and Alignment to International Standards. Tech for Good Institute. https://techforgoodinstitute.org/blog/expert-opinion/asean-digital-trade-journey-opportunities-challenges-and-alignment-to-international-standards/
O’Brien, R. M. (2007). A caution regarding rules of thumb for variance inflation factors. Quality & quantity, 41, 673-690.
OECD. (2012), Policy Priorities for International Trade and Jobs, (ed.), D. Lippoldt, e-publication, available at: www.oecd.org/trade/icite
OECD. (2017). Employment and Skills Strategies in Slovenia. OECD Publishing.
Park, Y. (2011). A pedagogical framework for mobile learning: Categorizing educational applications of mobile technologies into four types. International Review of Research in Open and Distributed Learning, 12(2), 78-102.
Pettinger, T. (2018). What Would Keynes Do? How the greatest economists would solve your everyday problems. Cassell.
Qian, J. (2023). The impact of corporate digital transformation on the export product Quality: Evidence from Chinese enterprise. Plos One 2023, 18(11): 0293461. https://doi.org/10.1371%2Fjournal.pone.0293461
Rogers, E. M. (2003). Diffusion of Innovations (Fifth Ed.), The Free Press: New York.
Röller, L. H., & Waverman, L. (2001). Telecommunications infrastructure and economic development: A simultaneous approach. American Economic Review, 91(4), 909-923.
Sasahara, A. (2019). Explaining the employment effect of exports: Value-added content matters. Journal of the Japanese and International Economies, 52, 1–21. https://doi.org/10.1016/j.jjie.2019.02.004
Sandkamp, A., Yalcin, E., & Kinzius, L. (2019). Global trade protection and the role of non?tariff barriers. CEPR.
Sharon, A. (2020, March 23). Malaysia’s ICT spending to reach US$25 billion in 2023 - OpenGov Asia. OPENGOV ASIA. https://opengovasia.com/malaysias-ict-spending-to-reach-us25-billion-in-2023/
Strange, R., Chen, L., & Fleury, M. T. L. (2022). Digital Transformation and International Strategies. Journal of International Management, 28(4), 100968. https://doi.org/10.1016/j.intman.2022.100968
Tejvan, P. (2017). How the housing market affects the economy.
Thomas, M. D. (1964). The export base and development stages theories of regional economic growth: an appraisal. Land Economics, 40(4), 421-432.
Wahab, N. A., Nayan, S., & Cheah, Y. K. (2020). Internet User and Economic Growth: Empirical Evidence from Panel Data. Journal of Emerging Economies and Islamic Research, 8(3), 17. https://doi.org/10.24191/jeeir.v8i3.8952
Wang, F., Guo, B., Wang, Z., & Wu, Y. (2023). The impact of the digital economy on the export competitiveness of China’s manufacturing industry. Mathematical Biosciences and Engineering, 20(4), 7253-7272.
Wooldridge, J. M. (2002). Econometric analysis of cross section and panel data MIT press. Cambridge, MA, 108(2), 245-254.
Wu, B., & Yang, W. (2022). Empirical test of the impact of the digital economy on China’s employment structure. Finance Research Letters, 49, 103047. https://doi.org/10.1016/j.frl.2022.103047
Xia, T., & Pei, J. (2021). The Impact of Digital Economy on Employment—Thinking Based on the Epidemic Situation in 2020. E3S Web of Conferences, 235(03034), 03034. https://doi.org/10.1051/e3sconf/202123503034
Yusof, Z.N., Murad, N., Yusof, B. (2022). Digital Skills and Entrepreneurial Education in Malaysia: Evidence from Experiential Learning. In: Larios-Hernandez, G.J., Walmsley, A., Lopez-Castro, I. (eds) Theorizing Undergraduate Entrepreneurship Education. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-030-87865-8_17
Zhang, L., Pan, A., Feng, S., & Qin, Y. (2022). Digital economy, technological progress, and city export trade. PloS one, 17(6), e0269314.
Zuo, G. W. (2021). Wired and Hired: Employment Effects of Subsidized Broadband Internet for Low-Income Americans. American Economic Journal: Economic Policy, 13(3), 447–482. https://doi.org/10.1257/pol.2019064
Published
2024-10-05
How to Cite
Ngah Mohamad, M. N. F., Ma’in, M., Mohamad Azhar, N. A. Z., & Susamto, A. A. (2024). The Impact of Digital Economy and Net Export of Goods and Services Towards Employment in the Selected Southeast Asia Countries. Information Management and Business Review, 16(3(I)S), 753-762. https://doi.org/10.22610/imbr.v16i3(I)S.4105
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