مجلة دراسات في الاقتصاد وإدارة الأعمال

From Resource Dependence To Digital Economy: Evidence On The Role Of Rare Earths, Innovation, And Investment

Auteurs : Benatek Adel .

Résumé

In light of national strategy, Algeria targets a transition to a digital economy along with exploiting Rare Earth Elements (REE). Accordingly, using the ARDL bounds testing approach, this study examines the long-run drivers of the Chinese digital economy as a successful experience. The main results revealed that while REE production, R&D expenditure, and domestic investments are necessary factors driving the long-term digital economy, digital security drives it too, in the short run. Additionally, to provide policy implications about what Algeria needs to change the most to develop its digital economy, those impactful factors in China are then compared to their actual levels in Algeria. Results revealed that Algeria needs to increase its R&D expenditures, enhance digital security, and reallocate domestic investments toward digital economy infrastructures. Lastly, developing human capital is also necessary, and it can be achieved by raising education quality and training qualified youths and adults.

Mots clés

Rare Earth Elements ; Digital Economy ; Digitalization