2025, Vol. 8, Issue 2

author(s)
Saad Khalaf Mhawes

abstract
This research aims to study the impact of digital economy indicators on economic growth in Turkey during the period 2004-2022 using an Autoregressive Distributed Lag (ARDL) model, based on World Bank data. The independent variables include ICT exports, R&D spending, and patent applications filed by residents, while GDP is used as the dependent variable to represent economic growth. The findings reveal a long-term cointegration relationship between the variables. Short -term estimates indicate that ICT exports and resident patent applications have a statistically significant positive impact on economic growth, while R&D spending shows a negative impact. However, in the long term, the variables do not show any statistically significant impact, suggesting structural distortions and inefficiencies in harnessing the inputs of the digital economy within the Turkish economy over the long term. The study concludes that the digital economy is a major driver of economic growth in the short term. However, achieving sustainable growth requires strengthening innovation systems, improving R&D frameworks, and developing the readiness of digital infrastructure to meet the requirements of a knowledge-based economy. Accordingly, the study recommends adopting more integrated policy strategies to maximize the returns of the digital economy and accelerate its contribution to economic growth in the medium and long term.