Impact of digital economic activity on regional economic growth: A Case study from northern Minas Gerais between 2009 To 2018

TL;DR

This study examines how digital economic activity influences regional economic growth in northern Minas Gerais from 2009 to 2018, highlighting the role of technology and specialized knowledge in regional development.

Contribution

It introduces an empirical measurement model to assess digital economy impacts on regional growth and identifies regional poles of development influenced by digital activity.

Findings

Municipalities with high economic growth are impacted by digital activity.

Digital economic activity correlates with regional development and specialized knowledge.

Technological evolution is a key driver of modern economic growth.

Abstract

At present, the economic measurement of the national statistical offices has not defined or captured the benefits of the digital economy activity due to the low quality or inexistence of methodologies. Currently, there is a relevant debate on the capacity of the digital economy activity to generate productivity, economic growth, and well-being through innovation and knowledge. For this reason, this research identified and studied specialized knowledge, human settlement, and digital economic activity as the factors that influence regional economic growth. As a result, the impact generated by a new business operating models based on information technology was measured. Furthermore, this research used an empirical measurement model that made it possible to identify certain phenomena such as regional poles of regional economic development (PRDE) that surround economically flourishing regions. In addition, it showed that municipalities with high degrees of economic growth were impacted by digital economic activity and specialized knowledge. This finding is consistent with economic growth theories that point to technological evolution as the main factor of modern economic growth. Consequently, this study contributed beneficial results to the local government to develop strategies framed in solving industrial cooperation of economically flourishing regions with their neighbors, facing the problem of agglomeration of resources and capital reflected in human settlement promote an imbalance in economic growth and social development.