The global financial landscape is being reshaped by three transformative forces: digital finance, green finance, and inclusive finance. Among these, digital finance has emerged as a pivotal driver of innovation, economic growth, and international competitiveness. As researchers dedicated to understanding the evolution of financial systems, our team—comprising myself and my students Yang Xiaochen, Wang Zhe, Chen Yinmo, Zhang Li, and Lu Xianfeng—has been at the forefront of exploring digital finance trends for over a decade. Our early work focused on cryptocurrencies like Bitcoin and Libra, as well as central bank digital currencies (CBDCs). Since 2020, our research scope has expanded significantly, embracing broader dimensions of the digital economy.
This culminated in the creation of the TIMG Index, a comprehensive framework designed to measure and compare digital economy development across countries. The index reflects our team’s latest academic contributions and analytical rigor in understanding one of the most critical economic transformations of the 21st century.
Understanding the TIMG Index Framework
The TIMG Index—named after its four core dimensions: Technology, Infrastructure, Market, and Governance—was initially conceptualized by Dr. Wang Zhe, a postdoctoral researcher at the Institute of Finance, Chinese Academy of Social Sciences (CASS). Building on her doctoral research on global digital mergers and acquisitions at Nankai University under Professor Jiang Dianchun, she developed an early prototype of a cross-national digital economy measurement system.
We refined this framework into a robust, multi-layered index comprising:
- 4 first-tier indicators
- 12 second-tier indicators
- 24 third-tier indicators
Our foundational paper, "Measuring Global Digital Economic Development: Characteristic Facts Based on the TIMG Index," was published in Financial Review in 2021. Since then, the TIMG Index has been applied in various quantitative studies, including our 2022 article in World Economic Studies titled "Can Global Digital Economic Development Reduce Income Inequality?"
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The Four Pillars of Digital Economy Growth
Each component of the TIMG Index captures a vital aspect of national digital capacity:
1. Digital Technology
As the primary engine of innovation, digital technology encompasses R&D investment, patent outputs, AI capabilities, and high-skilled talent pools. Despite its strategic importance, progress in this dimension has been relatively slow across many economies.
2. Digital Infrastructure
This includes broadband penetration, 5G deployment, cloud computing capacity, and internet accessibility. Strong infrastructure enables scalable digital services and supports inclusive growth.
3. Digital Market
Characterized by network effects, scale economies, and long-tail opportunities, a vibrant digital market reflects consumer adoption, e-commerce activity, fintech usage, and platform ecosystems.
4. Digital Governance
Effective regulation, data privacy laws, cybersecurity frameworks, and digital public services form the institutional backbone that fosters trust and sustainable development.
Collectively, our analysis shows that digital market expansion and infrastructure development have been the main drivers of global digital growth. While digital governance has seen accelerating improvements, technological advancement remains unevenly distributed.
Country Rankings and Key Findings (2021 Data)
The Global Digital Economy Development Index Report (TIMG 2023) covers 106 major economies from 2013 to 2021. In 2021:
- The United States ranked #1 globally, leading in technology, infrastructure, and market size. It placed 4th in governance, behind Singapore, Finland, and Denmark.
- Singapore secured 2nd place overall, with top-tier performance in infrastructure (#2) and governance (#1), though its market size ranked lower at #13.
China ranked 8th globally, surpassing several advanced economies. Notably:
- Digital Infrastructure: 3rd
- Digital Market: 2nd
- Digital Technology: 15th
- Digital Governance: 41st
From 2013 to 2021, China improved its overall rank by 14 positions, with significant gains in infrastructure (+18) and governance (+18). This upward trajectory underscores China’s strategic investments in digital transformation.
Among the top 20 countries in 2021, 18 were developed nations. Only China and the UAE stood out as emerging market leaders, highlighting the persistent digital divide between regions.
Geographically:
- High performers: North America, Western Europe, East Asia
- Lagging regions: Africa, Latin America
- Middle-tier: South Asia, parts of Southeast Asia
These disparities suggest that without targeted policies, the global digital gap may widen further.
Special Focus: Belt and Road Initiative (BRI) Countries
Marking the 10th anniversary of the BRI in 2023, our report includes a dedicated analysis of digital development among participating nations. Key observations:
- Since 2017, BRI countries have grown faster digitally than non-BRI peers.
Regional divergence is stark:
- Fast-growing: ASEAN, Central & Eastern Europe
- Slower progress: Central Asia, South Asia
- Top performers: Singapore, China, UAE, Israel
- Lowest rankings: Yemen, Laos, Kyrgyzstan
This suggests that while connectivity initiatives boost digital momentum, structural challenges remain in less developed regions.
Digital Cooperation: A New Frontier in International Relations
Our second专题 examines the state of international digital cooperation. Findings indicate:
- Rule-setting is still dominated by advanced economies: EU, U.S., UK.
- There’s a strong positive correlation between a country’s digital maturity and its level of international engagement.
- Most of China’s current digital partnerships are with lower-digital-capacity nations—indicating untapped potential for South-South collaboration and capacity building.
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Future Directions for the TIMG Index
Launched on May 30, 2023 at CASS Institute of Finance, the TIMG Report received valuable feedback from leading experts including:
- Prof. Zhang Xiaojing (CASS)
- Prof. Huang Zhuo (Peking University)
- Prof. Cai Yuezhou (Institute of Quantitative & Technical Economics)
- Mr. Li Zhenhua (Ant Group)
Recommendations for future enhancements include:
- Reassessing indicator weights to reflect real-world impact (e.g., market size significance)
- Incorporating elite scientist counts in technology metrics
- Adding coverage and accessibility rates in infrastructure assessment
- Examining interdependencies and trade-offs among indicators
We are committed to refining the TIMG Index annually to ensure it remains a credible, transparent, and widely adopted public good for policymakers, academics, and industry leaders.
A Legacy of Impactful Research
This report marks our team’s first major output on digital economy measurement. Previously, from 2014 to 2020, we published the China's Overseas Investment Country Risk Rating Report (CROIC-IWEP) for seven consecutive years—a publication recognized multiple times by the Chinese Academy of Social Sciences as a flagship think tank product.
We envision the TIMG Report following a similar trajectory: evolving into a trusted benchmark with both academic depth and policy relevance.
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Frequently Asked Questions (FAQ)
Q: What does TIMG stand for?
A: TIMG stands for Technology, Infrastructure, Market, and Governance—the four core dimensions used to assess national digital economy development.
Q: How many countries are covered in the TIMG 2023 report?
A: The report analyzes data from 106 major economies worldwide over the period 2013–2021.
Q: Why is China ranked high despite low digital governance scores?
A: While China ranks 41st in digital governance due to regulatory transparency and data protection concerns, its exceptional performance in infrastructure (#3) and market size (#2) drives its overall high ranking (#8).
Q: Is the TIMG Index comparable to other global indices like IMD or WEF rankings?
A: Yes. Unlike broader competitiveness indices, TIMG focuses exclusively on digital economy dimensions, offering deeper granularity in technology adoption, market dynamics, and policy frameworks.
Q: How can policymakers use the TIMG Index?
A: Governments can identify strengths and weaknesses across the four pillars to design targeted strategies—such as boosting rural broadband access or reforming data laws—to accelerate digital transformation.
Q: Will future reports include subnational data (e.g., provinces or states)?
A: While current data is national-level, expanding to regional analysis is under consideration for future editions to capture internal disparities within large economies.
Keywords integrated throughout: digital finance, digital economy, TIMG Index, digital infrastructure, digital market, digital governance, technology innovation, global rankings.