Digital Infrastructure and Income Level: Drivers of E-Commerce in Southeast Asian Countries

Abstract

Southeast Asia is entering the digital decade, where the digital economy is growing rapidly due to shifts in consumer and business behavior, with an estimated impact on the internet economy reaching US$1 trillion by 2030. E-commerce is one form of representation of the digitalization of the economy that has successfully created a multiplier effect. The progress of the digital economy that is not accompanied by an increase in digital infrastructure has the potential to create a digital divide. Aims: This study aims to determine and analyze the effect of GDP per capita and digital infrastructure e-commerce in six Southeast Asian countries. Study Design: This research applies a descriptive quantitative approach. Methodology: Researchers included internet, fixed broadband, mobile broadband, and mobile cellular as indicators of digital infrastructure. The research transformed the data into logarithmic form and used panel data regression with a fixed effect model (FEM). This research uses secondary data by taking annual data from 2017 to 2023 in six Southeast Asian countries such as Indonesia, Malaysia, Singapore, Thailand, Philippines, Vietnam. Results: The results of this study indicate that GDP per capita, internet and fixed broadband have a positive and statistically significant effect on e-commerce. Mobile cellular have a positive but no statistically significant effect on e-commerce. Meanwhile, mobile broadband has no positive effect on e-commerce. Conclusion: This research is expected to be a consideration for governments in the six Southeast Asian countries to reduce technological backwardness by improving the equity and quality of ICT access to maximize the potential of e-commerce in the digital economy.