Fiscal Incentives and Digital Transformation in Emerging Economies: A Systematic Review and Research Agenda

Somia Ghrara

doi:10.69569/jip.2025.809

Authors

Somia Ghrara Cadi Ayyad University, Economic and Social Sciences, Marrakech, Morocco

DOI:

https://doi.org/10.69569/jip.2025.809

Keywords:

Digital transformation, Emerging economies, Fiscal incentives, Innovation policy, Accelerated depreciation

Abstract

This study presents a systematic review of the literature on the role of fiscal incentives in promoting digital transformation within emerging economies. While digitalization is increasingly recognized as a catalyst for productivity, innovation, and inclusive development, there remains a limited synthesis of how fiscal tools—such as tax credits, accelerated depreciation, and innovation subsidies—facilitate this transition. The review draws on peer reviewed empirical studies from major academic databases and employs thematic content analysis to identify patterns, gaps, and conceptual linkages across contexts. Findings suggest that fiscal incentives can reduce financial barriers, encourage technological adoption, and stimulate organizational innovation. However, the literature is often fragmented, geographically skewed, and lacking in theoretical and methodological consistency. In particular, there is a need for deeper insights into firm-level behavioral mechanisms, sectoral differences, and long-term policy impacts. This review consolidates current evidence and offers a structured research agenda to guide future inquiries. It also underscores the importance of integrating fiscal tools into broader digital development strategies to ensure equitable and effective transformation in emerging economies.

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