Digital Entrepreneurship and Economic Growth in emerging Asian Economies: A Panel Threshold Analysis

Document Type : Original Article

Authors

1 Department of Economics, Faculty of Humanities, University of Gonbad e Kavous, Gonbad e Kavous, Iran

2 Department of Economics Faculty of Humanities University of Gonbad e Kavous, Gonbad e Kavous, Iran

10.48308/jem.2025.240871.2000

Abstract

This paper investigates the moderating role of digital infrastructure on the relationship between entrepreneurial activities and economic growth in emerging Asian economies. While theoretical literature emphasizes the central role of entrepreneurship in fostering innovation and growth, empirical evidence—particularly in Asia—suggests a complex and conditional relationship. Many studies have identified institutional quality as a key moderating variable; however, with the rapid pace of digital transformation, the question arises whether a country's digital capacity plays a similar or even more significant role. Using a Panel Threshold Regression (PTR) model and data on digital access indicators, entrepreneurship, economic growth, and national innovation (such as R&D expenditure and patents) for a group of emerging Asian economies during the period 2000–2024, this study seeks to identify the nonlinear effects of internet penetration and digitalization on entrepreneurship-driven growth. The results indicate that the positive impact of entrepreneurship on economic growth becomes significant and pronounced only after digital infrastructure surpasses a certain threshold level. This finding has important policy implications for countries such as Iran, which are in the midst of digital transition, highlighting that mere investment in promoting startups—without the simultaneous development of inclusive and high-quality digital infrastructure—may not yield desirable macroeconomic outcomes

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