ICT Infrastructure, Economic Growth and ASEAN Income Heterogeneity: A Panel Analysis

ABSTRACT This study examines the impact of information and communication technology (ICT) infrastructure on ASEAN economies, filling a research gap. It sheds light on ICT infrastructures, including internet usage, retail e‐commerce, fixed and mobile broadband penetration, and connectivity costs as an essential component of GDP. The results conclude that remittances and affordable mobile costs have a significant impact on the economy. While fixed broadband and investment strongly support the economies of lower‐income ASEAN countries, the effects of fixed broadband and mobile subscriptions vary. However, fintech and institutional quality variables reveal significant challenges. Regarding theoretical contribution, this study addresses this non‐linear relationship by developing a framework that explores how ICT infrastructure influences economic performance in an emerging setting. In terms of empirical contribution, this study highlights that the economic implications of digital infrastructure and services differ significantly across low‐, middle‐, and high‐income ASEAN countries. More importantly, it fills a gap in region‐specific analysis by accommodating the diversity of ASEAN economies. Concerning policy contribution, the importance of income‐sensitive digital policies is highlighted. Implementing inclusive initiatives to enhance regional ICT infrastructure collaboration, reduce the digital divide between privileged and underprivileged social groups, and help ASEAN countries fulfil the Digital Masterplan.