A CROSS-COUNTRY ANALYSIS OF DIGITAL ADOPTION AND SUSTAINABLE DEVELOPMENT IN SELECTED OIC ECONOMIES

Hartini Mohammad; Aiza Liyana  Anuar

Authors

Hartini Mohammad Faculty of Economics and Muamalat, Universiti Sains Islam Malaysia, Negeri Sembilan, Malaysia
Aiza Liyana Anuar Economics Section, UniKL Business School, Universiti Kuala Lumpur, Kuala Lumpur, Malaysia

Keywords:

Sustainable Development Goals (SDG), Digital Adaptation, Panel Data, Fixed Effects, OIC Countries

Abstract

This study examines the relationship between digital adaptation and Sustainable Development Goal (SDG) performance across selected Organisation of Islamic Cooperation (OIC) upper-middle-income countries. Using panel data from 2014 to 2023, the study focuses on two key indicators of digital infrastructure namely internet penetration and fixed broadband subscription; and evaluates their influence on SDG outcomes. To account for broader structural factors, the model includes control variables such as GDP per capita growth, education index, urbanization rate, and government effectiveness. Static panel data estimations, including Pooled OLS, Fixed Effects (FE), and Random Effects (RE) models, are employed. The Hausman test confirms the appropriateness of the FE model. The results reveal that internet penetration has a statistically significant and positive impact on SDG performance, while broadband access shows weaker effects. Among the control variables, economic growth and urbanization are positively associated with SDG outcomes, whereas education displays a counterintuitive negative effect. Governance shows mixed results, suggesting longer-term institutional reform may be needed to support sustainable development. The findings underscore the importance of digital infrastructure as a key enabler of SDG achievement and call for targeted investment in internet access and inclusive urban development. This study contributes to the literature on digital development and sustainability by offering policy-relevant insights for OIC countries navigating the digital transition.

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