Information and Communication Technology (ICT) and Income Inequality in ASEAN-5 Countries

Digital economy basically refers to an economy that is based on digital technologies. Embracement of digital economy transforms the economic growth of a nation. Countries that are blessed with a successful digitalization can boost its economic performance; however, it might trigger the income inequality of a country. On this note, income inequality in ASEAN country is relatively higher than other countries. Hence the aim of this study is to examine the relationship between ICT and income inequality in ASEAN-5 countries over the study period of 2009 to 2018. Employs static and dynamic panel data estimation method, the results show mobile-cellular telephone subscription to have the strongest effect on income inequality among the ICT indicators. The findings suggest countries to focus on the innovation of ICT especially on the mobile-cellular telephone subscription, fixed broadband subscription and fixed telephone subscription to achieve economic growth and hence reduce income inequality. Investments in ICT infrastructure promote ICT technology cooperation as well as the advancement of ICT especially on the rise in employment in ICT sector, transformation of government services into digital form to confront with the income inequality