Abstract

Objectives: The study aims to analyze the contribution of the digital economy to job creation and the achievement of sustainable economic development in developing countries during the period 2010-2025. Methods: This study adopted a quantitative panel-data technique by using data from 20-30 developing countries between 2010 and 2025. Econometric methods, such as descriptive statistics, correlation, and the fixed-effects model, were used, and the Hausman test validated the model. Results: The results show a significant positive impact of the digital economy on economic growth (beta = 0.183, p < 0.01) and a negative impact on unemployment (beta = -0.091, p < 0.05). These findings are further supported by the correlation analysis (r = 0.72 for GDP; r = -0.48 for unemployment). The findings also showed that human capital and capital accumulation have significant positive effects as well. Conclusions: This study highlights that the digital economy plays a crucial role in fostering sustainable economic growth through improved productivity and job creation. Governments should focus on digital infrastructure investment, digital skills training, and inclusive governance policies to enhance the benefits of the digital economy.