The Invisible Economy: An Assessment of Data, Digital Platforms and Productivity in Developing Economies
Abstract
This study empirically investigates the role of data readiness and digital platforms in shaping labour productivity across fifty developing economies using cross-country secondary data. Employing descriptive statistics, correlation analysis and Ordinary Least Squares regression, the study models labour productivity as a function of data readiness, digital platform usage, internet penetration, mobile broadband subscriptions, digital commerce intensity, services sector contribution, formal employment and income level. The full regression results reveal that data readiness and digital platform usage exert strong, positive and statistically significant effects on labour productivity, confirming that the capacity to generate, process and deploy data is a core driver of productivity in the modern invisible economy. Internet penetration and mobile broadband subscriptions also display significant positive impacts, highlighting the critical role of connectivity infrastructure. Digital commerce share and formal employment emerge as important market-formalization channels through which digitalization translates into productivity gains, while GDP per capita retains a significant complementary effect. The digital-only model further confirms that core digital variables alone explain a substantial proportion of productivity variation across countries. Overall, the findings demonstrate that productivity growth in developing economies is no longer driven solely by traditional capital and labour accumulation but increasingly by data intensity, platform participation and digital market integration. The study contributes to the emerging digital-productivity literature by providing robust cross-country evidence on how the invisible digital economy reshapes production structures and performance. Policy implications emphasize the need for strategic investments in data infrastructure, digital platforms, broadband expansion and market-formalization frameworks to unlock sustained productivity growth in developing regions.
Keywords
Invisible Economy, Data Readiness, Digital Platforms, Labour Productivity, Developing Economies, Digital Commerce.
Citations
IRE Journals:
Dr. Chukwuemeka Ifegwu Eke, Akanji Olajide Omotayo; Aloubhio Gospel Enake, Abubakar Sadiq Sani; Olufemi Malik Oduntan, Ukoje Emmanuel Ojonimi; Durojaiye Ayomide, Ogedengbe Adeboye; Ogenyi Cecilia Roselyn "The Invisible Economy: An Assessment of Data, Digital Platforms and Productivity in Developing Economies" Iconic Research And Engineering Journals Volume 9 Issue 6 2025 Page 2065-2078 https://doi.org/10.64388/IREV9I6-1712876
IEEE:
Dr. Chukwuemeka Ifegwu Eke, Akanji Olajide Omotayo; Aloubhio Gospel Enake, Abubakar Sadiq Sani; Olufemi Malik Oduntan, Ukoje Emmanuel Ojonimi; Durojaiye Ayomide, Ogedengbe Adeboye; Ogenyi Cecilia Roselyn
"The Invisible Economy: An Assessment of Data, Digital Platforms and Productivity in Developing Economies" Iconic Research And Engineering Journals, 9(6) https://doi.org/10.64388/IREV9I6-1712876
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