DIGITALIZATION AND INCLUSIVE ECONOMIC GROWTH: A CROSS-COUNTRY ANALYSIS DOI: 10.63407/

Abstract: This study investigates how digitalization affects inclusive economic growth in various countries. The research examines the relationship between digital transformation and inclusive development, using composite indicators and cluster analysis. The empirical analysis includes data from 20 countries between 2010 and 2022, enabling examination of both temporal changes and differences in development patterns. The research creates indices for digitalization and inclusive development, and then uses comparison, correlation, cluster analysis, and regression modelling to analyse the data. The results suggest that digitization and inclusive growth are clearly linked in a good way. The strength of this link is different in different countries and is primarily based on how well the economy is doing and how well the institutions are. The cluster analysis shows that there are many groups of countries with different levels of digitization and inclusion. The findings underscore the diverse trajectories of development. Specifically, the data indicate that the benefits of digitization are contingent upon a confluence of factors: a well-educated workforce, robust institutional frameworks, and equitable opportunities for broad-based economic participation. These findings offer valuable insights for creating economic policies. Such policies should try to ensure that the benefits of digital transformation translate to long-term and inclusive economic growth.

Keywords: Digitalization, Digital divide, Digital transformation, Inclusive economic growth, Inequality, Composite indices, Cluster analysis, Cross-country analysis, Economic development, Sustainable development, Institutional environment, Poverty.