Digital Consumption Index for ASEAN-6: A proxy developed with China as benchmark

Abstract

The nexus between economic growth and digitalization is increasingly intertwined. Challenges related to data availability and continuity have posed significant impediments to the development of viable measurements, such as the digital economy index and digital adoption index, for tracking the level of digitalization in emerging markets like the ASEAN-6. This paper introduces a proxy digital economy index that is both concise and adaptable to mitigate the current shortcomings. Employing a hierarchical equal-weighted method with China as the benchmark, a short series of the Digital Consumer Index was computed from 2017 to 2022. The findings of the paper suggests that ASEAN-6 nations must collectively intensify their efforts to bolster digital transformation. The proposed index establishes a foundational framework for future advancements. It facilitates a more immediate assessment of the digital economy's trajectory within ASEAN countries, allowing policymakers to make informed decisions while concurrently setting the stage for more comprehensive digital economy accounting practices in the future.