Digital inclusion or exclusion? Exploring the moderating role of governance in digitalization’s impact on income inequality in developing countries
Digitalization plays a critical role in economic development and ensuring social equity. The advancement of digitalization is expected to expand economic opportunities for previously underserved populations, thereby narrowing income disparities. However, it may also exacerbate inequality due to diff...
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| Format: | Article |
| Language: | English |
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Elsevier
2025-06-01
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| Series: | Research in Globalization |
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| Online Access: | http://www.sciencedirect.com/science/article/pii/S2590051X25000164 |
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| author | Thi Lam Ho Le Hong Ngoc Thu Hoai Ho |
| author_facet | Thi Lam Ho Le Hong Ngoc Thu Hoai Ho |
| author_sort | Thi Lam Ho |
| collection | DOAJ |
| description | Digitalization plays a critical role in economic development and ensuring social equity. The advancement of digitalization is expected to expand economic opportunities for previously underserved populations, thereby narrowing income disparities. However, it may also exacerbate inequality due to differences in access and skill levels. In this study, we utilize panel data from 45 developing countries over the period 2002–2023, employing the recently developed Method of Moments Quantile Regression (MMQR) by Machado & Santos Silva (2019) to examine the empirical relationship between digitalization and income inequality and to assess the role of governance quality in this relationship. Our findings reveal a strong negative impact of digitalization on income inequality across all specific and composite digitalization measures. Furthermore, we find that the relationship between digitalization and income inequality is contingent on governance quality and the type of digitalization adopted. Based on our research results, several governance implications are proposed to enhance the effectiveness of digitalization in reducing income inequality in developing countries. |
| format | Article |
| id | doaj-art-fcfa35131add4dc19ab2f1b2b8aebb73 |
| institution | DOAJ |
| issn | 2590-051X |
| language | English |
| publishDate | 2025-06-01 |
| publisher | Elsevier |
| record_format | Article |
| series | Research in Globalization |
| spelling | doaj-art-fcfa35131add4dc19ab2f1b2b8aebb732025-08-20T03:07:50ZengElsevierResearch in Globalization2590-051X2025-06-011010028310.1016/j.resglo.2025.100283Digital inclusion or exclusion? Exploring the moderating role of governance in digitalization’s impact on income inequality in developing countriesThi Lam Ho0Le Hong Ngoc1Thu Hoai Ho2University of Finance - Marketing, Ho Chi Minh City, Viet Nam; Corresponding author.University of Economics Ho Chi Minh City, Viet NamUniversity of Economics Ho Chi Minh City, Viet NamDigitalization plays a critical role in economic development and ensuring social equity. The advancement of digitalization is expected to expand economic opportunities for previously underserved populations, thereby narrowing income disparities. However, it may also exacerbate inequality due to differences in access and skill levels. In this study, we utilize panel data from 45 developing countries over the period 2002–2023, employing the recently developed Method of Moments Quantile Regression (MMQR) by Machado & Santos Silva (2019) to examine the empirical relationship between digitalization and income inequality and to assess the role of governance quality in this relationship. Our findings reveal a strong negative impact of digitalization on income inequality across all specific and composite digitalization measures. Furthermore, we find that the relationship between digitalization and income inequality is contingent on governance quality and the type of digitalization adopted. Based on our research results, several governance implications are proposed to enhance the effectiveness of digitalization in reducing income inequality in developing countries.http://www.sciencedirect.com/science/article/pii/S2590051X25000164C31D31O15O33 |
| spellingShingle | Thi Lam Ho Le Hong Ngoc Thu Hoai Ho Digital inclusion or exclusion? Exploring the moderating role of governance in digitalization’s impact on income inequality in developing countries Research in Globalization C31 D31 O15 O33 |
| title | Digital inclusion or exclusion? Exploring the moderating role of governance in digitalization’s impact on income inequality in developing countries |
| title_full | Digital inclusion or exclusion? Exploring the moderating role of governance in digitalization’s impact on income inequality in developing countries |
| title_fullStr | Digital inclusion or exclusion? Exploring the moderating role of governance in digitalization’s impact on income inequality in developing countries |
| title_full_unstemmed | Digital inclusion or exclusion? Exploring the moderating role of governance in digitalization’s impact on income inequality in developing countries |
| title_short | Digital inclusion or exclusion? Exploring the moderating role of governance in digitalization’s impact on income inequality in developing countries |
| title_sort | digital inclusion or exclusion exploring the moderating role of governance in digitalization s impact on income inequality in developing countries |
| topic | C31 D31 O15 O33 |
| url | http://www.sciencedirect.com/science/article/pii/S2590051X25000164 |
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