Journal of Global Trade, Ethics and Law

Vol. 1 No. 2 (2023): Journal of Global Trade, Ethics and Law
Articles

How does Digitalization impact the Economic growth: Evidence From China and the USA?

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  • Umer Shahzad,
  • He Xiaoyin
Umer Shahzad
Zhengzhou University
He Xiaoyin
Zhengzhou University
DOI: https://doi.org/10.5281/zenodo.7995266

Published 2023-06-01

Keywords

  • Digitalization,
  • Economic Growth of China and USA,
  • Internet Cost,
  • Internet Users,
  • Cobb-Douglas Production Function

How to Cite

Shahzad, U., & Xiaoyin, H. (2023). How does Digitalization impact the Economic growth: Evidence From China and the USA? . Journal of Global Trade, Ethics and Law, 1(2), 25–42. https://doi.org/10.5281/zenodo.7995266

Copyright (c) 2023 Journal of Global Trade, Ethics and Law

Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 International License.

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Abstract

Digitalization is a key component of the world economy from past recent years. Based on that in our study, we are taking part in the literature on how digitalization changes the economy of the USA and China. The study aims to investigate the impact of the Internet on the economic growth of China and the USA from 1990 to 2019. After we used the Cobb-Douglas production function, the outcomes analysis that there is a positive effect of the Internet on the Chinese economy and the United State economy. Additionally, internet cost and internet users also have a positive impact on the economic growth of China as well as the USA. Furthermore, the outcomes of our study give suggestions to the Chinese and the United State policy maker to motivate investors to invest in the field of information communication technology to improve the living standard and increase the economic growth of a country.

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