DIGITAL CONVERGENCE AND DIVERGENCE IN EU AND ASEAN ECONOMIES
DOI:
https://doi.org/10.2478/eoik-2025-0002Abstract
This study examines the evolving digital economy in terms of con-
vergence and divergence in European Union (EU) and Association
of Southeast Asian Nations (ASEAN) countries over the period from
2010 to 2024, including the effects of the COVID-19 pandemic. This
research uses a range of digital economy indices, including the ICT
Development Index, E-Government Development Index, Online
Service Index, Telecommunication Infrastructure Index, and Human
Capital Index. It aims to identify and compare the patterns of conver-
gence or divergence in digital indicators within and between the EU
and ASEAN regions. The study employs beta convergence analysis,
sigma convergence analysis, and difference-in-difference analysis to
compare digital performance and assess the impact of the pandemic
on the digital economy. By contrasting the digital development paths
of the EU and ASEAN, the study provides insights into the digital
gap and offers policy recommendations to promote more equitable
digital development in both regions. The findings indicate that while
the EU demonstrates more consistent convergence across digital indi-
ces, ASEAN exhibits both convergence and divergence, particularly
during the post-pandemic period. The results reveal the urgent need
for policy interventions aimed at reducing regional digital gaps, espe-
cially by enhancing digital infrastructure and improving human cap-
ital. This research offers valuable insights for policymakers in both
regions, providing actionable strategies to foster inclusive digital de-
velopment, enhance resilience in the face of global crises, and bridge
the digital divide in an increasingly interconnected world.
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