Digital Reach, Consumption, and Equity Market Deepening: Evidence from ASEAN-5
DOI:
https://doi.org/10.65166/nxnfqv94Keywords:
marketing infrastructure, household consumption, financial deepening, market capitalization, internet access, ASEAN, panel dataAbstract
This study examined the relationship between digital market reach, household consumption, and financial deepening in selected ASEAN economies from 2000 to 2023. From a macro-level perspective, the study treated internet access as a proxy for marketing infrastructure, household final consumption expenditure per capita growth was specified as the mediating variable, and market capitalization of listed domestic companies as a percentage of GDP was used as the principal indicator of financial deepening. Using annual secondary data from the World Development Indicators, the study analyzed a balanced ASEAN-5 panel comprising Indonesia, Malaysia, the Philippines, Singapore, and Thailand. The empirical strategy employed two-way fixed-effects regression models with country and year effects, including a one-year lag for internet access, and robustness checks using broadband subscriptions, mobile cellular subscriptions, turnover ratio, and total value traded. The results showed that lagged internet access had a positive and statistically significant association with equity market capitalization, indicating that stronger digital connectivity was linked to the capitalization dimension of financial deepening. However, internet access did not significantly predict household consumption growth, and household consumption did not mediate the relationship between internet access and market capitalization. In the mediated model, household consumption entered with a negative coefficient, suggesting that short-run aggregate demand was not the principal channel through which digital market reach was associated with stock-market scale in the selected ASEAN economies. Robustness checks further showed that fixed broadband subscriptions were positively associated with market capitalization, while the results were weaker for mobile subscriptions and liquidity-based stock-market indicators. The study concludes that digital connectivity may function as a form of macro-level marketing infrastructure associated with equity-market deepening, although the expected household-consumption transmission mechanism is not supported. The findings contribute to the literature on macro-marketing, digital transformation, and financial development by clarifying that digital market reach appears to be more strongly related to stock-market size than to short-run household demand expansion.
Downloads
References
Aberu, F. (2023). Headline inflation and consumers' confidence in Nigeria. Jurnal Ekonomi Dan Bisnis Airlangga, 33(1), 30. https://doi.org/10.20473/jeba.v33i12023.30-39
Aksoy, Y., Basso, H. S., & Aubyn, C. S. (2021). Time variation in lifecycle consumption and income. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.3801844
Alemu, M. H., Sigurðsson, V., Fagerstrøm, A., & Foxall, G. R. (2019). Developing the e-commerce sector for the fishery industry. Managerial and Decision Economics, 41(2), 274. https://doi.org/10.1002/mde.3089
Alwahidin, N., Jufra, A. A., Mulu, B., & Sari, K. N. (2023). A new economic perspective: Understanding the impact of digital financial inclusion on Indonesian households consumption. Bulletin of Monetary Economics and Banking, 26(2), 211.
Ardagna, S., & Lusardi, A. (2010). Heterogeneity in the effect of regulation on entrepreneurship and entry size. Journal of the European Economic Association, 8, 594.
Atento, A. G., & Atento, R. G. (2026). Legacy Retail under Digital Disruption: Strategic Insights from National Book Store’s Omnichannel Transition in the Philippines. Journal of Enterprise Strategy and Management Innovation (JESMI), 1(1). https://doi.org/10.65166/nny9z718
Atento, R. G. (2026). Macroeconomic and structural determinants of formal business entry in ASEAN: Evidence from a linear mixed-effects model using World Development Indicators. Journal of Enterprise Strategy and Management Innovation (JESMI), 1(1). https://doi.org/10.65166/bh0gx302
Ater, I., & Orlov, E. (2014). The effect of the internet on performance and quality: Evidence from the airline industry. The Review of Economics and Statistics, 97(1), 180.
Babina, T., Fedyk, A., He, A. X., & Hodson, J. (2023). Artificial intelligence, firm growth, and product innovation. Journal of Financial Economics, 151, 103745.
Bahlous-Boldi, M. (2021). Agency costs and credit availability: An international study. European Journal of Management and Business Economics, 31(3), 285.
BAKARI, S. (2021). The nexus between domestic investment and economic growth in G7 countries. Journal of Applied Economic Sciences, 16(16), 238.
Bakos, J. Y. (1997). Reducing buyer search costs: Implications for electronic marketplaces. Management Science, 43(12), 1676.
Balogun, W. O., Dahalan, J., & Hassan, S. (2016). Stock market development, liberalization and financial development in the selected Sub-Saharan African countries. Research Papers in Economics.
Baltagi, B. H., Song, S. H., & Jung, S. C. (2011). Testing for heteroskedasticity and serial correlation in a random effects panel data model. SSRN Electronic Journal.
Bechtel, G. G., & Bechtel, T. (2020). GDP and human development. Open Journal of Social Sciences, 8(11), 333.
Benosa, I. R., Atento, R. G., Martinez, V. C., Mendoza, J., Mesias, R., & Rivera, G. C. (2026). Value Innovation Through Pre-Arrival Room Customization: A Blue Ocean Strategy Design for App-Enabled Hospitality Personalization. Journal of Enterprise Strategy and Management Innovation (JESMI), 1(1). https://doi.org/10.65166/0h7xt639
Bezrukova, N., Huk, L., Chmil, H., Verbivska, L., Komchatnykh, O., & Kozlovskyi, Y. (2022). Digitalization as a trend of modern development of the world economy. WSEAS Transactions on Environment and Development, 18, 120.
Bocconcelli, R., Cioppi, M., Fortezza, F., Francioni, B., Pagano, A., Savelli, E., & Splendiani, S. (2016). SMEs and marketing: A systematic literature review. International Journal of Management Reviews, 20(2), 227.
Bond, P. L., Edmans, A., & Goldstein, I. (2012). The real effects of financial markets. Annual Review of Financial Economics, 4(1), 339.
Bonsu, C. O., & Muzindutsi, P.-F. (2017). Macroeconomic determinants of household consumption expenditure in Ghana. DOAJ.
Capasso, S. (2008). Stock market development and economic growth. In Palgrave Macmillan UK eBooks (p. 10).
Chodorow-Reich, G., Nenov, P., & Simsek, A. (2021). Stock market wealth and the real economy: A local labor market approach. American Economic Review, 111(5), 1613.
Cioppi, M., Curina, I., Francioni, B., & Savelli, E. (2023). Digital transformation and marketing: A systematic and thematic literature review. Italian Journal of Marketing, 2023(2), 207.
Crawley, E., & Kuechler, A. (2022). Consumption heterogeneity: Micro drivers and macro implications. American Economic Journal: Macroeconomics, 15(1), 314.
Cruz-Jesus, F., Oliveira, T., Bacao, F., & Irani, Z. (2016). Assessing the pattern between economic and digital development of countries. Information Systems Frontiers, 19(4), 835.
D'Amelio, M., Garrone, P., & Piscitello, L. (2016). Can multinational enterprises light up developing countries? World Development, 88, 12.
Danquah, M., & Owusu, S. (2021). Digital technology and productivity of informal enterprises: Empirical evidence from Nigeria. UNU-WIDER Working Paper.
Dellas, H., & Hess, M. K. (2005). Financial development and stock returns: A cross-country analysis. Journal of International Money and Finance, 24(6), 891.
Demir, A., & Hall, S. G. (2017). Financial structure and economic development: Evidence on the view of 'new structuralism.' International Review of Financial Analysis, 52, 252.
DeQuero-Navarro, B., Stanton, J. V., & Klein, T. A. (2020). A panoramic review of the macromarketing literature. Journal of Macromarketing, 41(1), 48.
Didier, T., Levine, R., & Schmukler, S. L. (2014). Capital market financing, firm growth, firm size distribution. NBER Working Paper.
Dominica, L., Shabrina, Z., Octavianie, H., & Septiani, S. (2020). Effect of deepening financial sector on income gap in six Asia countries 2012-2016. KnE Social Sciences.
Driscoll, J. C., & Kraay, A. (1995). Spatial correlations in panel data. World Bank Working Paper.
Edi, E., & Wati, E. (2022). Measuring intangible asset: Firm reputation. Verslas: Teorija ir Praktika, 23(2), 396.
Eduardsen, J. S., Tulder, R. van, Verbeke, A., & Piscitello, L. (2018). Internationalization through digitalization. Research Portal Denmark.
Engelsbak, L. W. (2025). A globe of one's own. In Routledge eBooks.
Espelita, C. A. M., & Atento, R. G. (2025). From community voice to marketing strategy. International Journal of Health & Business Analytics, 1(2). https://doi.org/10.65166/mt4em434
Ezrachi, A. (2016). The ripple effects of online marketplace bans. SSRN Electronic Journal.
Ferracane, M. F., & Marel, E. van der. (2020). Patterns of trade restrictiveness in online platforms. World Economy, 43(11), 2932.
Flensburg, S., & Lai, S. S. (2020). Comparing digital communication systems. Nordicom Review, 41(2), 127.
Galtier, F., Bousquet, F., Antona, M., & Bommel, P. (2012). Markets as communication systems. HAL.
Gillwald, A. (2020). Openness in telecommunications reform and practice. MIT Press.
Goldfarb, A., & Tucker, C. E. (2019). Digital economics. Journal of Economic Literature, 57(1), 3.
Hong, X., Chen, Q., Shi, C., & Wang, N. (2024). The impact of digitalization on the rich and the poor. Technology in Society, 78, 102634.
Huang, Y. (2005). What determines financial development? SSRN Electronic Journal.
Ildirar, M., & Iscan, E. (2016). The interaction between stock prices and commodity prices. DergiPark.
Ilhan, B. (2020). Stock market liberalization: Effects on stock market development. International Journal of Islamic Economics and Finance Studies.
Jepsen, A. L. (2007). Factors affecting consumer use of the internet for information search. Journal of Interactive Marketing, 21(3), 21.
Jung, S.-U., & Shegai, V. (2023). The impact of digital marketing innovation on firm performance. Sustainability, 15(7), 5711.
Kambil, A., & Heck, E. van. (1998). Reengineering the Dutch flower auctions. Information Systems Research, 9(1), 1.
Katsikeas, C. S., Leonidou, L. C., & Zeriti, A. (2019). Revisiting international marketing strategy in a digital era. International Marketing Review, 37(3), 405.
Khalid, A. A. (2015). World development indicators. Data Archiving and Networked Services.
Kozic, I., Arcabic, V., & Sever, I. (2022). Tourism and business cycles. Zagreb International Review of Economics and Business, 25(1), 95.
Kuchler, T., & Stroebel, J. (2020). Social finance. NBER Working Paper.
Kuvshinov, D., & Zimmermann, K. (2018). The big bang: Stock market capitalization in the long run. Journal of Financial Economics, 145(2), 527.
Lee, J. W., & Lee, S. H. (2019). User participation and valuation in digital art platforms: The case of Saatchi Art. European Journal of Marketing, 53(6), 1125.
Li, K., Kim, D. J., Lang, K. R., Kauffman, R. J., & Naldi, M. (2020). How should we understand the digital economy in Asia? Electronic Commerce Research and Applications, 44, 101004.
Luo, Y. (2022). New connectivity in the fragmented world. Journal of International Business Studies, 53(5), 962.
Mahusin, M., & Prilliadi, H. (2025). Rethinking ASEAN's approach to a moratorium on customs duties for electronic transmissions. Research Papers in Economics.
Matarazzo, M., Penco, L., & Profumo, G. (2021). How is digital transformation changing business models and internationalisation in Made in Italy SMEs? Sinergie Italian Journal of Management.
Mavlanova, T., Benbunan-Fich, R., & Koufaris, M. (2012). Signaling theory and information asymmetry in online commerce. Information & Management, 49(5), 240.
Mhlongo, N. Z., Daraojimba, D. O., Olubusola, O., Ajayi-Nifise, A. O., & Falaiye, T. (2024). Reviewing the impact of digital platforms on entrepreneurship in Africa. International Journal of Science and Research Archive, 11(1), 1364.
Mignamissi, D., & Bio, I. (2023). Digital divide and bilateral trade in Africa. Research Square.
Mundo, F. D., & Atento, R. G. (2025). Fundamental and technical indicator analysis of San Miguel Corporation. International Journal of Health & Business Analytics, 1(2). https://doi.org/10.65166/6vdtp816
Nowakowski, J. M. (2005). Calculating the impact of trade on aspects of human development in Central Europe. Ekonomika, 70.
Omar, A. B., Ali, A., Mouneer, S., Kouser, R., & Al-Faryan, M. A. S. (2022). Is stock market development sensitive to macroeconomic indicators? PLoS ONE, 17(10).
Palagi, E., Napoletano, M., Roventini, A., & Gaffard, J. (2021). An agent-based model of trickle-up growth and income inequality. SSRN Electronic Journal.
Paun, C., Musetescu, R., Topan, M. V., & Danuleteiu, D. C. (2019). The impact of financial sector development and sophistication on sustainable economic growth. Sustainability, 11(6), 1713.
Picchioni, F., Aurino, E., Aleksandrowicz, L., Bruce, M., et al. (2017). Roads to interdisciplinarity: Working at the nexus among food systems, nutrition and health. Food Security, 9(1), 181.
Prats, M. A., & Sandoval, B. (2020). Does stock market capitalization cause GDP? A causality study for Central and Eastern European countries. Economics, 14(1).
Qian, J., Zhang, X., Yan, X.-W., & Xu, N. (2024). Can information consumption promote the digital transformation of enterprises? Sustainability, 16(24), 11026.
Qiu, Y. (2024). Financial deepening and economic growth in select emerging markets with currency board systems. arXiv.
Quinto, L., & Atento, R. G. (2025). Economic Growth and Developmental Equity in Four ASEAN Economies: Linking Macroeconomic Trends to Employment and Child Nutrition (1999–2024). International Journal of Health & Business Analytics, 1(1). https://doi.org/10.65166/nq75nv94
Ratchford, B. T., Soysal, G., Zentner, A., & Gauri, D. K. (2022). Online and offline retailing: What we know and directions for future research. Journal of Retailing, 98(1), 152.
Ridwan, M., Aspy, N. N., Mahjabin, T., et al. (2024). Scrutinizing the LCC hypothesis in ASEAN-5. Research Square.
Robul, Y. (2020). Structure and constituents of digital marketing systems. Olsztyn Economic Journal, 15(1), 53.
Rocha, A. da, Fonseca, L. N. da, & Kogut, C. S. (2024). Small firm internationalization using digital platforms. International Marketing Review.
Ruyter, K. de, Keeling, D., Plangger, K., Montecchi, M., Scott, M. L., & Dahl, D. W. (2021). Reimagining marketing strategy: Driving the debate on grand challenges. Journal of the Academy of Marketing Science, 50(1), 13.
Sahin, D., & Temelli, F. (2018). An analysis on macroeconomic and institutional determinants of the stock market development in Turkey and APEC countries. Uluslararasi Iktisadi ve Idari Incelemeler Dergisi.
Sanbella, L., Versie, I. V., & Audiah, S. (2024). Online marketing strategy optimization to increase sales and e-commerce development. Startupreneur Business Digital Journal, 3(1), 54.
Sandoyan, E., Rodionov, D., Voskanyan, M., & Galstyan, A. G. (2025). The role of digital technologies in capital market development. International Journal of Technology, 16(2), 573.
Sa-ngiamwibool, A., & Wisaeng, K. (2021). ASEAN Economic Community and its impacts. Problems and Perspectives in Management, 19(3), 247.
Secretariat, ASEAN, & World Bank. (2013). ASEAN integration monitoring report.
Sevgi, H. (2021). Analysis of the digital economy and society index (DESI) through a cluster analysis. Trakya University Journal of Social Sciences, 23, 37.
Singh, P., Khoshaim, L., Nuwisser, B., & Alhassan, I. (2024). How information technology (IT) is shaping consumer behavior in the digital age. Sustainability, 16(4), 1556.
Sousa, H. (2019). Digital media inequalities: Policies against divides, distrust and discrimination. European Journal of Communication, 34(6), 701.
Sridharan, S., Barrington, D., & Saunders, S. G. (2017). Markets and marketing research on poverty and its alleviation. Marketing Theory, 17(3), 323.
Strategic Marketing Management in Asia. (2016). Emerald Group Publishing.
Sugiarto, S., & Wibowo, W. (2020). Determinants of regional household final consumption expenditure in Indonesia. Jejak (Journal of Economics and Policy), 13(2), 332.
Sugiyanto, C., & Yolanda, Z. (2020). The effect of financial deepening on economic growth, inequality, and poverty. South East European Journal of Economics and Business, 15(2), 15.
Susilo, J. (2024). Cooperation in digital innovation under the Master Plan on ASEAN Community. Airlangga Journal of Innovation Management, 5(1), 107.
Sy, C. V., & Luu, T. H. (2025). The impact of internet on consumption: A local factors approach. International Journal of Data and Network Science, 9(4), 793.
Taeuscher, K. (2019). Uncertainty kills the long tail: Demand concentration in peer-to-peer marketplaces. Electronic Markets, 29(4), 649.
Trabelsi, M. A., & Cherif, M. (2016). Capital account liberalization and financial deepening. The Quarterly Review of Economics and Finance, 64, 141.
Trojette, I. (2016). Growth, effect and attractiveness of FDI: The role of institutions. HAL.
Usman, M. A., & Callo-Concha, D. (2021). Does market access improve dietary diversity and food security? Agricultural and Food Economics, 9(1).
Valickova, P., Havranek, T., & Horvath, R. (2014). Financial development and economic growth: A meta-analysis. Journal of Economic Surveys, 29(3), 506.
Varlamova, J., & Larionova, N. (2015). Macroeconomic and demographic determinants of household expenditures in OECD countries. Procedia Economics and Finance, 24, 727.
Vitug, E. G., & Alvarez, S. C. (2024). Harnessing the market potential of the bamboo industry in Central Luzon, Philippines. Open Journal of Ecology, 14(5), 395.
Yang, D., & Shen, H. (2025). Research on the impacts and mechanisms of digital strategy on corporate innovation investment. Journal of Open Innovation Technology Market and Complexity, 11(1), 100471.
Yu, M. (2024). The development of Southeast Asia's digital economy. Economic and Regional Studies, 17(2), 314.
Zhang, H., Hu, M., & Jiang, S. (2025). Profit or growth? The impacts of supplier dependence and customer dependence on SMEs' performance. Sustainability, 17(3), 1302.
Zhang, X. (2022). Broadband, effective labor, and economic growth during the COVID-19 pandemic period. Online Media and Global Communication.
Downloads
Published
Issue
Section
License
Copyright (c) 2026 Liezl Marie Lantin-Magana, Ramon George O. Atento, PhD (Author)
This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
Authors retain copyright of their articles but grant the International Journal of Health & Business Analytics (IJHBA) the right of first publication.
