The impact of the digital economy paradigm on the productivity and monetary system of Oman
Journal of Science and Technology Policy Management
ISSN: 2053-4620
Article publication date: 8 March 2022
Issue publication date: 14 August 2023
Abstract
Purpose
Digitalisation has become closely related to various economic sectors in terms of economic impact and discovery of new technologies. In this regard, this study aims to examine the relationship between the digital economy, as measured by four proxies (infrastructure, empowerment of society, technological economic growth and digitalisation development), and the productivity and monetary system of Oman from 1985 to 2019.
Design/methodology/approach
The autoregressive distributed lag methodology and diagnostic tests were used to increase the robustness of findings.
Findings
The analysis showed significant positive long-run relationships between infrastructure (measured as the number of fixed telephone subscriptions), technological economic growth (measured as medium- and high-tech exports as a percentage of manufactured exports) and the monetary system. There was also a significant negative short-run relationship between digitalisation development, measured as the number of individuals (percentage of the population) using the internet, and the monetary system. Furthermore, there were significant positive short- and long-run relationships between digitalisation development and productivity. Only short-run relationships were identified between empowerment of society, measured as the number of mobile cellular subscriptions, and productivity.
Originality/value
The conclusions support the paradigm of diffusion of innovation theory, which aims to understand the use of modern technologies to obtain the maximum economic benefit, and show both the dark and bright sides of technology. Furthermore, the effect of the digitalisation economy paradigm on productivity should be determined by increasing logistical services. This will support the growth of foreign and domestic investments and promote cooperation between the public and private sectors, thereby achieving digitalisation in Oman and enabling reflection on the country’s monetary policy development and economic growth.
Keywords
Acknowledgements
Availability of data and material: Source of data sets are available in World Bank Indicators from 2004 to 2019, at the link https://data.worldbank.org/
Ethical standard: The authors declare that this research paper complies with the ethical standards of this journal.
Informed consent: This paper does not contain any information that requires informed consent.
Author’s contributions: All authors have the same contribution. All authors read and approved the final manuscript.
The authors would like to thank the editor and anonymous referees for their valuable comments and suggestions to improve the quality of this paper.
Citation
ALshubiri, F., ALmaashani, A.A. and Thuaar, S.M. (2023), "The impact of the digital economy paradigm on the productivity and monetary system of Oman", Journal of Science and Technology Policy Management, Vol. 14 No. 5, pp. 830-858. https://doi.org/10.1108/JSTPM-07-2021-0097
Publisher
:Emerald Publishing Limited
Copyright © 2022, Emerald Publishing Limited