DIGITALISATION, LABOUR FORCE PARTICIPATION, AND ENTREPRENEURSHIP IN DEVELOPING COUNTRIES
Abstract
This study investigates the macro-level impact of digitalisation on employment in both developed and developing countries from 2000 to 2023, with a particular focus on Kenya, Vietnam, and Bolivia. Using panel data and econometric techniques including fixed effects, random effects, and robust regression, we analyse the relationship between employment and macroeconomic variables such as real GDP, gross capital formation, labour force participation rate, primary education, ICT goods imports, and IDA resource allocation index. Our findings indicate that ICT goods imports, labour force participation rate, and foreign direct investment positively influence employment, while longer average years of education are associated with a decrease in employment rates—possibly reflecting overqualification or structural mismatch. The paper also examines how digitalisation-induced occupational risks drive necessity versus opportunity entrepreneurship and occupational mobility.
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