The Digitalization – Economic Growth Relationship in Developing Countries and the Role of Governance

Digital technology is emerging as one of the suitable solutions to help developing economies catch up with advanced economies in the context of globalization. Progress in digital technology promotes economic growth in developing economies because it reduces transaction costs in economic activities and improves workers’ skills and knowledge. Meanwhile, governance is the primary cause of economic growth. Therefore, this study raises a research question of whether governance significantly contributes to the digitalization – economic growth relationship in developing countries or not. For the answer, the study uses the difference GMM Arellano-Bond estimators to empirically examine the effects of digitalization, governance, and their interaction on economic growth for a group of 35 developing countries from 2006 to 2019. Then, the study applies the FE-IV estimator to check the robustness of estimates. The results indicate that digitalization and governance boost economic growth while their interaction hinders it. Furthermore, trade openness also increases economic growth. These findings suggest some crucial policy implications that governments in developing countries should establish appropriate conditions to promote digital technology so that citizens can peacefully express their views on government policies and regulations, which contributes to the economic development of the country

The Effect of Government Debt on Private Investment in Advanced Economies: Does Institutional Quality Matter?

Unlike developing economies, advanced economies easily borrow debt to finance budget deficits. Government debt is one of the active measures of fiscal policy in these economies to run the economy and overcome its cyclicality. Most related studies note that government debt reduces private investment. Does it hold for advanced economies? Does institutional quality significantly affect the government debt – private investment relationship in these economies? For the answer, the study applies the PMG estimator (PMG) and the two-step difference GMM Arellano & Bond estimator (D-GMM) to investigate the impacts of government debt, institutional quality, and their interaction on private investment in 36 advanced economies from 2002 through 2019. The estimated results report that government debt crowds out private investment, while institutional quality enhances it. However, their interaction crowds out it. It seems counter-intuitive. Besides, economic growth and trade openness increase private investment while inflation decreases it. These results indicate the crucial implications for central governments in advanced countries in using and managing government debt

The role of digitalization in the FDI – income inequality relationship in developed and developing countries

Purpose: The study aims to use individuals using the internet and fixed broadband subscriptions as a proxy for digitalization to empirically assess the effects of Foreign Direct Investment (FDI), digitalization, their interaction on income inequality in developed and developing countries from 2002 to 2019. Design/methodology/approach: The paper used the system general method of moments (GMM) estimators for 30 developed and 35 developing countries. Findings: FDI increases income inequality in developed countries but decreases it in developing countries, digitalization reduces income inequality in both groups, interaction term narrows income inequality in developed countries but widens it in developing countries. Originality/value: The paper is the first to introduce digitalization into the FDI – income inequality relationship. Furthermore, it provides empirical evidence to show the difference in the role of digitalization in this relationship between developed and developing countries.Objetivo: El estudio tiene como objetivo utilizar a personas que utilizan Internet y suscripciones de banda ancha fija como sustituto de la digitalización para evaluar empíricamente los efectos de la inversión extranjera directa (IED), la digitalización y su interacción en la desigualdad de ingresos en los países desarrollados y en desarrollo de 2002 a 2019. Diseño/metodología/enfoque: El documento utilizó estimadores del método generalizado de los momentos (GMM) para 30 países desarrollados y 35 países en desarrollo. Hallazgos: La IED aumenta la desigualdad de ingresos en los países desarrollados pero la disminuye en los países en desarrollo, la digitalización reduce la desigualdad de ingresos en ambos grupos, el término de interacción reduce la desigualdad de ingresos en los países desarrollados pero la amplía en los países en desarrollo. Originalidad/valor: El artículo es el primero en introducir la digitalización en la relación IED-desigualdad del ingreso. Además, proporciona evidencia empírica para mostrar la diferencia en el papel de la digitalización en esta relación entre los países desarrollados y en desarrollo

A locally 55-arc transitive graph related to PSU3(8){\rm PSU}_3(8)

We construct a locally 5-arc transitive $G$-graph $\Delta$, where $G \in \{ {\rm PSU}_3(8) \rtimes C_2, {\rm PSU}_3(8) \rtimes C_6\}$. The corresponding vertex stabilizer amalgams are of local characteristic $3$ but are not weak $(B,N)$-pairs. They are the first examples of this kind where there exists a vertex $z$ such that the extension of $G_z/O_p(G_z^{[1]})$ over $O_p(G_z^{[1]})$ is non-split

Vertex stabilizers of locally s-arc transitive graphs of pushing up type

Suppose that Δ a thick, locally finite and locally s-arc transitive G-graph with s≥4. For a vertex z in Δ, let Gz be the stabilizer of z and G[1]z be the kernel of the action of Gz on the neighbours of z. We say Δ is of pushing up type provided there exists a prime p and a 1-arc (x,y) such that CGz(Op(G[1]z))≤Op(G[1]z) for z∈{x,y} and Op(G[1]x)≤Op(G[1]y). We show that if Δ is of pushing up type, then Op(G[1]x) is elementary abelian and Gx/G[1]x≅X with PSL2(pa)≤X≤PΓL2(pa)