This study aims to investigate the structural transmission between economic growth and human capabilities, and to calibrate the role of digital literacy as a moderating variable. Using an explanatory quantitative approach with a panel data structure covering 38 provinces in Indonesia from 2022 to 2025, this study implements Moderated Regression Analysis (MRA) with a Random Effect Model (REM) specification. The econometric estimation results affirm that the accumulation of per capita Gross Regional Domestic Product (GRDP) has a positive and significant impact on the escalation of the Human Development Index (HDI), validating the applicability of the trickle-down effect at the regional level. The most crucial finding confirms that the Digital Literacy Index empirically moderates and amplifies the effect of per capita GRDP on HDI through a quasi-moderator effect. This phenomenon proves that absolute economic growth without an adequate digital inclusion ecosystem risks distorting the equitable distribution of development and creating immiserizing growth. In conclusion, technological adoption and the equitable distribution of digital literacy are necessary conditions to convert macroeconomic growth into holistic and inclusive welfare and human development.
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