Does Digitalization Spillover Positively Influence on the Economy? New Evidence from Japan

Based on the panel data of Japan from 2011 to 2019, we utilizes the Principal Component Analysis (PCA) and Directed Acyclic Graphs (DAGs) for constructing the digitalization development index and the digitalization spillover effects. We find that in general, even the digitalization development positively influences the overall regional economic behavior, the spillover effect has an negative impact on the economy. The population aging worsen the spillover effect while the prosperity of entertainment has an positive adjustment on the spillover effect, and negative impacts of spillover are more pronounced in the sea of Japan area