The impacts of globalization, institutional quality, and digital technology innovation on OECD countries sustainable digital economic growth

This study examines the effects of the digital economy components (digital technology innovation), institutional quality, and globalization on achieving sustainable digital economic growth within the Organization for Economic Cooperation and Development. Using panel data from 2002 to 2020 and applying the Generalized Method of Moments, the cointegration results confirm the presence of cointegration among all variables. The empirical findings reveal that digital technology innovation and institutional quality significantly enhance economic growth, with positive contributions of 0.014% and 0.011%, respectively. Meanwhile, globalization contributes by 0.533%. The study concludes that technological innovation, institutional quality, and globalization played a significant role in the country's economic expansion. The green total factor productivity shows a positive contribution. The Dumitrescu-Hurlin panel causality test results indicate two-way relationships among economic growth (GDP), labor, capital, institutional quality, and globalization. According to this analysis, selected nations can achieve the Sustainable Development Goals by implementing the necessary measures to achieve a balanced approach to sustainability across economics, society, and the environment. This can be accomplished through digital technology innovations, green technologies, and robust institutions. Integrating globalization and digitalization through increased investment in digital infrastructure would enhance access to innovative technologies and connectivity, while additionally improving efficiency.