Bridging the Digital Divide: The Impact of Public Investment on Urban-Rural Disparities in Pakistan

Abstract

This investigation aims to determine the impact of public investment in the digital economy on de-urbanization in Pakistan. Using secondary data, the researcher employed a quantitative research design to analyze various data related to the variables of interest, most notably the digital infrastructure score, internet penetration rate, GDP growth rate, employment rate, education level, and health index score. The process begins with brief descriptive findings indicating substantial investment discrepancies and digital infrastructure quality differences between rural and urban populations, with the urban population receiving much more investment on average. The comparative findings underscore the significant investment disparity, while the regression results demonstrate a positive correlation between the rate of internet penetration and GDP growth. The other variables, such as the digital infrastructure score, the afore-mentioned employment and education variables, and the health index, are all non-significant in the model. More investment appears necessary to reap such economic benefits, and the aforementioned complementary policies will be required to facilitate rural broadband access. Collectively, the results of this research will help policymakers further a more inclusive approach to economic policy and create conditions for sustainable development regardless of population density.