Examining the Impact of Digital Transformation on Exports of Pakistan

Abstract

Exports are vital for emerging economies because they offer people and firms many more markets for their goods. In both developed and developing countries, exports as a catalyst for economic growth. This study examines the impact of digital transformation on exports to Pakistan. Global market changes are driven in large part by the digital transformation. By transforming digitally businesses and exports can become more competitive, efficient, and innovative. In this study, digital transformation is measured with individuals using the internet, fixed telephone subscriptions, and mobile cellular subscriptions. Time series data will be used for this study from 1990 to 2020. The stationarity of the variables was checked by Phillips Perron (PP) and Augmented Dicky-Fuller (ADF). In this study, all the variables were stationary at the first difference in the unit-root test. This study employed the Autoregressive Distributed Lag (ARDL) model for long and short-term relationships and short-term causalities among the variables. The findings of this research indicate a positive and significant relationship between digital transformation and exports. This study also provides comprehensive policies for policymakers to boost the nation’s exports. The government should act right now to develop more digital technologies to boost domestic output and services export needs. Effective digital policies should be established and novel approaches to digital transformation should be implemented.