Digital Economy and Sustainable Development: Analyzing the Dimensions of Relationship in Light of the Developments of COVID-19 Crisis and Climate Change

Abstract

This study aims to analyze and interpret the relationship between the digital economy and sustainable development by identifying different indicators and comparing them to justify the ranking differences among countries according to each indicator. Additionally, it reviews the importance of the digital economy amidst the COVID-19 pandemic and its impact on climate change. The study utilized descriptive and historical approaches to analyze the relationship variables and review previous literature, as well as statistical and quantitative methods to formulate the econometric model and estimate results. The study was applied to a sample of 105 countries, which were divided into two groups based on their digital economy indicators. The relationship in each group was measured by estimating the correlation and linear regression based on cross-sectional data from the United Nations and Strategy& Middle East for the years 2020 and 2021. The results showed a significant negative relationship between the digital economy and sustainable development, indicating that the digital economy played a role in mitigating the negative impacts of global crises such as the COVID-19 pandemic and climate change. The study also found that the positive impact of the digital economy on achieving sustainable development goals was relatively lower in countries that have made significant progress in transitioning to a digital economy, such as Saudi Arabia. These findings will inform decision-makers in Saudi Arabia in assessing the role of the digital economy in accelerating the achievement of sustainable development goals and formulating suitable policies.