Pabna University of Science and Technology

Abstract

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Purpose: The study showed the impact of digitalization on the economic growth of Bangladesh. Methodology: The researcher used secondary data to analyze the relationship between variables. Linear regression analysis was used to estimate the effect of explanatory variables and explained variable. For performing statistical analysis, STATA programming environment was used to this study. Telecommunication infrastructure index and online service index were used as explanatory variables. GDP growth rate used as explained variable. Findings: The regression result showed the significant and positive impact of telecommunication infrastructure index and online service index on GDP growth rate. The variable explained was 86.6%, which was higher and indicate that these variable effect mostly on the GDP growth rate. Due to data insufficiency, the researcher cannot compare network readiness index and GDP growth rate. However, the study has found that there is significant level growth of the network readiness index and GDP growth rate. Further, the study should be conducted with more data and other variables. Practical Implications: A developing country like Bangladesh, an appropriate infrastructure policy will helpful for all stage of development, that will drive the process of economic development. Policymakers should give sufficient support to establish the digital infrastructure. Originality: The study found that in Bangladesh digitalization indicators have been more effective effect on economic growth. Research Limitations: The limitation of the research is the generalization of the findings. Further researchers should conduct studies to find other variables that increase the impact digitalization.