Boosting Jordan’s Economic Growth through Digital Economy Expansion: Quantitative Analysis and Policy Implications

This study aims to understand the influence of the critical drivers of the digital economy on Jordan’s economic growth using a cointegration model between the periods from 2005 to 2022. The essential drivers include the number of fixed-line users, mobile phone subscribers, Internet users, fixed-line purchasers, and mobile subscribers. The model was estimated using the Vector Error Correction Model (VECM), revealing a unique and consistent integrating relationship between variables. This indicates that the digital economy helps Jordan grow faster and creates job opportunities, which also helps improve the quality of many sectors. The study suggested that the business environment can be improved by enhancing trust and increasing transparency. The government should focus on the digital economy as a sector that works to increase growth rates in Jordan. It must also work to develop infrastructure, which requires more investment in this area, and there is a need to enhance investments in the Jordanian digital economy and enhance the effectiveness of the industry to enhance the country’s Gross Domestic Product.