The Impact of Digital Transformation on Economic Integration in ASEAN-6: Evidence from a Generalized Least Squares (GLS) Model

Thi Anh Tuyet Le ()
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Thi Anh Tuyet Le: Faculty of International Economics, Ho Chi Minh University of Banking, Ho Chi Minh 700000, Vietnam

JRFM, 2025, vol. 18, issue 4, 1-13

Abstract: This study analyzes the impact of digital transformation on the international economic integration of ASEAN-6 countries during the period of 2000–2023 using the Generalized Least Squares (GLS) estimation method. The findings indicate that factors such as fixed broadband subscriptions (FixB), fixed telephone subscriptions (FixT), and the value added from medium- and high-tech manufacturing (MHT) have a positive and statistically significant effect on trade openness (TO). Conversely, mobile cellular subscriptions (MB) and the percentage of individuals using the Internet (IU) exhibit a negative impact on economic integration, reflecting the uneven development of digital infrastructure across countries. Based on these results, the study suggests policy implications, including substantial investment in digital infrastructure, technological advancement in production, and improved accessibility to digital services to foster more effective economic integration. ASEAN-6 countries should adopt tailored development strategies that emphasize innovation and the development of a skilled digital workforce to enhance their competitiveness both regionally and globally.

Keywords: digital transformation; digital economy; economic integration; international integration; international trade; ASEAN-6 (search for similar items in EconPapers)
JEL-codes: C E F2 F3 G (search for similar items in EconPapers)
Date: 2025
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