An Empirical Study on the Role of Internet Technology in Economic Growth under the Background of Digital Economy

Abstract

In the era of the digital economy, the pervasive influence of Internet technology on economic growth has become a subject of significant academic and policy interest. This empirical study delves into the intricate relationship between Internet technology and economic expansion, leveraging a robust dataset that spans multiple years and diverse economic sectors. Through the application of sophisticated econometric models, including regression analysis and instrumental variable approaches, the research quantifies the contribution of Internet penetration, digital infrastructure, and online services to economic performance. The findings reveal a compelling narrative: Internet technology acts as a catalyst for economic growth, enhancing productivity, facilitating innovation, and reshaping traditional business models. The analysis demonstrates that higher levels of Internet adoption are associated with increased GDP per capita, reduced unemployment rates, and improved trade balances. Moreover, the study identifies significant spillover effects, where the benefits of Internet technology extend beyond the digital sector to positively impact other areas of the economy. Regional and sectoral disaggregation uncovers variances in the impact of Internet technology, highlighting the importance of tailored policy interventions. The research underscores the critical role of government initiatives in promoting digital literacy, investing in broadband infrastructure, and creating a conducive regulatory environment for digital entrepreneurship.