Assel Kozhakhmetova

Business School, Kazakh British Technical University,

Kazakhstan

a.kozhakhmetova@kbtu.kz  

ORCID 0000-0002-3077-2023

Effects of digital transformation on green investment: Evidence from developing economies

Zhanar Tazhiyeva

Department of Business Technologies, Al-Farabi Kazakh National University,

Kazakhstan

zhanzari@gmail.com  

ORCID 0000-0002-1730-6490

Aknur Zhidebekkyzy

School of Management, Almaty Management University,

Kazakhstan

a.zhidebekkyzy@almau.edu.kz 

ORCID 0000-0003-3543-547X

Zoltán Bács

Faculty of Economics and Business, University of Debrecen,

Hungary 

bacs.zoltan@econ.unideb.hu

ORCID 0000-0003-0612-658X

Abstract. This study examines the impact of digital transformation on green investments in Kazakhstan from 2014 to 2022. The analysis is grounded in the Green Digital Transformation Theory, which posits that digital enablers such as high-tech manufacturing, E-participation, Big Data analytics, and ICT infrastructure foster environmentally sustainable business practices. The study employs linear regression modelling to assess the influence of five independent variables reflecting digitalisation on green investment, serving as the dependent variable. The dataset combines indicators from IMD, WIPO, and Kazakhstan's Bureau of National Statistics. Before modelling, variables were logarithmically transformed, and internal consistency was verified using Cronbach's alpha, which yielded a coefficient of 0.989, indicating excellent reliability. The results suggest that digital and technological skills (β = 1.88, p = 0.008) and E-participation (β = 1.63, p = 0.023) have a positive and statistically significant effect on green investment, while digital transformation (β = -0.72, p = 0.041) in companies unexpectedly exerts a negative effect. The findings reveal sector-specific trade-offs in digital modernisation and underscore the need for better alignment between digital and sustainability policies in developing economies.

Received: December, 2024

1st Revision: February, 2025

Accepted: May, 2025

DOI: 10.14254/2071-8330.2025/18-2/8

JEL Classification: Q01, O33, M15

Keywords: digital technologies, green business, green investment, e-participation, Big Data, ICT costs, Kazakhstan