The Influence of the Digital Economy on Economic Development Evidence from Uzbekistan

This study seeks to explore the dynamic and long-term interrelationships between the digital economy and economic development in Uzbekistan. Utilizing annual time-series data spanning from 2005 to 2023, the research examines GDP per capita as a proxy for economic development, alongside various indicators, namely communications, computer, etc. (% of service exports), information and communication technology (ICT) service exports, statistical capacity score, and industrial design applications representing key components of the digital economy. Employing sophisticated time-series methodologies, specifically the Ordinary Least Squares (OLS) and Vector Autoregression (VAR) models, the analysis reveals a significant and positive correlation between the digital economy and GDP per capita, both in the short and long term. The findings underscore the crucial role of digital economic development as a strategic driver of economic growth, highlighting its importance as a focal area for policy formulation and governmental intervention in fostering sustainable economic advancement.