Digital Connectivity and Socio-Economic Development: Evidence from South Asia

Abstract

This study provides insights into the factors impacting Internet accessibility and adoption across the South Asian Group of Countries (SAGC) by examining the drivers of Individuals using the Internet (IUI) throughout the region. This research examines data from 2001 to 2025 using fixed and random effect models to reveal complex links between social, technological, and economic aspects and IUI. The results indicate that although GDP per capita (GDPPC) exhibits a positive correlation with IUI, the effect is not statistically significant. This suggests that variables other than economic growth are required to boost individuals using Internet. On the other hand, Research and Development Expenditures (R&DEXP) show a strong positive correlation with IUI, underscoring the significance of financial investments in infrastructure development and technological advancements to support internet accessibility. The study points out the significance of targeted policy interventions aimed at reducing income disparities, promoting research and development, and enhancing digital literacy to foster universal and sustainable internet access across SAGC countries, thereby facilitating socio-economic development and digital inclusion within the region's borders. According to the study, income inequality (II), as measured by the Gini Index (GI) and Poverty Head Count Ratio (PHCR), additionally demonstrates a negative connection with IUI. These findings suggest that socioeconomic disparities may pose barriers to equitable internet access within the SAGC.

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