The effect of digital transformation on employment in Egypt: An applied study using ARDL model

Abstract

The current study aims to measure the effect of digital transformation on employment in Egypt, in addition to developing some proposed measures to sustain the digital vision in the New Republic to reduce unemployment. So, this study tries to contribute to this discussion, which attracted the attention of the two researchers to the problem of this research. EViews 12 Software was used as this study depended on the autoregressive distributed lag methodology, which gives the best results in the long run, and is considered one of the most suitable models with the sample size used in this research. The sample size consisted of 18 observations extended from 2003 to 2020. As well as, the Vector Auto-Regression model was used to test the relationship between variables in order to test hypotheses as it is characterized by dealing with the variables entering the system as correlated internal variables. The study results showed that the unemployment variable did not have a causal effect on the independent variables, while the education variable and the Gross domestic product variable had a causal and positive effect on the independent variables that express the transformation digital where the significance value was less than 5%.