Technology Spillovers, Innovation, and Digitalization as Drivers of Poverty Reduction in Asia: New Insights and Emerging Linkages

ABSTRACT This study investigates whether technology‐driven channels contribute to poverty (Pov) reduction in Asia. Specifically, it examines the effects of technology spillovers through Greenfield foreign direct investment (Gfi), technological innovation (Tec), and digitalization (Dig) on Pov levels in 32 Asian countries over the period 2001–2023. Using balanced panel data from international sources, the study applies Random Effects (RE) and System Generalized Method of Moments (Sys‐GMM) estimators to control for country‐specific heterogeneity and potential endogeneity. The empirical findings reveal that Gfi, Tec, and Dig significantly reduce Pov, while unemployment exerts an adverse effect. The results suggest that technology‐related spillovers alleviate Pov primarily by enhancing productivity, efficiency, and labor market opportunities. This study contributes to the literature by providing new regional evidence on the poverty‐reducing role of technology spillovers and digitalization in Asia, offering policy‐relevant insights aligned with the United Nations' 2030 Sustainable Development Goals, particularly Goal 1 (No Poverty).