Can the Digital Economy Outperform the Oil Economy in Terms of Achieving Human Development?

Nashwa Mostafa Ali Mohamed, Kamilia Abd-Elhaleem Ahmed Frega and Jawaher Binsuwadan ()
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Nashwa Mostafa Ali Mohamed: Department of Economics, College of Business Administration, King Saud University, P.O. Box 173, Riyadh 11942, Saudi Arabia
Kamilia Abd-Elhaleem Ahmed Frega: Department of Economics and Foreign Trade, Faculty of Commerce and Business Administration, Helwan University, Cairo P.O. Box 11795, Egypt
Jawaher Binsuwadan: Department of Economics, College of Business Administration, Princess Nourah bint Abdulrahman University, P.O. Box 84428, Riyadh 11671, Saudi Arabia

Sustainability, 2024, vol. 16, issue 12, 1-20

Abstract: The digital economy is reshaping the global economic landscape, with advancements in artificial intelligence, robotics, and virtual reality revolutionizing industries and transforming how people work and live. While the digital economy has promise in terms of improving human capital development, for example, through increased access to education and healthcare services, it also presents challenges, such as job displacement and income inequality. This study aims to evaluate the impact of the digital economy on human development indicators in the Kingdom of Saudi Arabia, seeking to understand how it influences education, health, and income levels. This paper provides valuable insights for policymakers seeking to enhance the Kingdom’s position in the global human development race by examining the relationship between the digital economy and human development using econometric models. This paper analyzes data from the World Bank and the United Nations Development Program to measure the impact of the digital economy on sustainable human development indicators. The findings show that while the digital economy has negligible or negative influence on other human development indicators, it has a limited beneficial impact on education in the long run. In addition, attaining sustainable human development—which is consistent with Vision 2030—requires expanding the economy beyond the oil sector and fostering scientific and technological progress.

Keywords: digital economy; sustainable development; human capital; oil economy; econometrics model; human development indicators (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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