The Impact of the K Economy on the Socio-Economic Development of Mauritius
Published
Synopsis
This paper investigates the role of the knowledge economy in the socioeconomic development of a small island economy. Mauritius is used as a case study because it is a resource-scarce economy; it depends entirely on its human capital to move up the development ladder and achieve high-income status. The paper innovates and contributes to the literature by adopting a broader perspective in measuring the knowledge economy by the digitalization index and assessing its overall impact on the socioeconomic development of the country (measured by the Human Development Index). Using data from 1988 to 2019, a dynamic framework that is the vector error correction model is applied. The results confirm that digitizing the Mauritian economy has indeed contributed toward higher socioeconomic development.