Digital Divide and Economic Vulnerability: Evidencefrom Developing Economies

Abstract

Background: Despite the rapid pace of global digital transformation, significant disparities in digital access persist, particularly in developing economies. Limited access to quality internet, digital infrastructure, and digital skills in low- and middle-income countries restricts participation in economic activities and reinforces structural inequalities. Existing literature often examines digital access in isolation, with limited focus on its multidimensional relationship with economic vulnerability.

Objective: This study aims to examine the relationship between digital access and economic vulnerability in emerging economies using a multidimensional empirical approach.

Methods: The study utilizes secondary data obtained from international development databases and employs regression analysis to assess the impact of digital access indicators on key measures of economic vulnerability, including poverty rates, unemployment rates, and income instability across countries.

Results: The findings reveal a statistically significant negative association between digital access and economic vulnerability. Higher levels of digital inclusion are associated with reduced poverty, lower unemployment, and improved income stability.

Conclusion: The study highlights the critical role of digital infrastructure and connectivity in promoting inclusive economic performance. It contributes to the literature on digital inequality by providing a multidimensional empirical perspective and underscores the need for policy interventions aimed at improving digital infrastructure, affordability, and digital literacy to achieve sustainable economic growth.