ENDOGENOUS DIGITAL TRANSFORMATION (EDT) FRAMEWORK: ADVANCING THE DIGITAL ECONOMY FOR DEVELOPING COUNTRIES

ABSTRACT

The digital economy has transcended its role as a secondary sector to become the primary engine for high-quality economic growth. For developing nations, adopting a structured, data-driven growth model is no longer a luxury but a strategic necessity to avoid permanent marginalisation from the global economy. Therefore, it is imperative to understand how developing countries can advance their digital economy in a localised and context-specific approach that addresses their unique socio-economic and infrastructural realities. This article synthesises a strategic framework derived from a two-week immersion in China’s digital economy. This qualitative method involved systematic observation at site visits, personal lecture notes, and informal interactions with digital economists, tech entrepreneurs, and researchers. By analysing China’s transition to digitise its economy and examining localised successes in the digital ecosystems of Fujian and Zhejiang provinces, this research presents a seven-step framework tailored to the Global South using Endogenous Growth Theory.

Keywords: Endogenous digital transformation, digital economy, developing countries, digital economy framework