The Main Drivers of Economic Growth in Landlocked Central Asian Countries: A Focus on the Digital Economy

Abstract. This article explores the main drivers of economic growth in landlocked Central Asian countries, with a special focus on the role of digital transformation. Using an extensive dataset spanning from 1995 to 2022, the research employs advanced econometric techniques, including Fully Modified Ordinary Least Squares (FMOLS) and Dynamic Ordinary Least Squares (DOLS), to analyze the effects of key macroeconomic variables. The findings highlight that digital trade, e-commerce, foreign direct investment (FDI), and mobile payment systems significantly boost economic growth in the region, while rapid population growth exerts a negative impact. Surprisingly, the influence of information and communication technology (ICT) on economic growth is mixed, warranting further investigation. These results underscore the importance of fostering digital infrastructure, enhancing digital literacy, and adopting policies to address demographic challenges. It is highly recommended that Central Asian countries prioritize investments in broadband networks and mobile payment systems to improve market access and financial inclusion. By leveraging digital transformation and addressing structural barriers, Central Asian countries can overcome geographical constraints and achieve sustainable, inclusive economic development.