The digital economy, green finance, and inclusive finance represent the three major directions of global and Chinese financial development today. As financial researchers, it is essential to stay informed about the latest trends and dynamics in these fields. To this end, I formed a digital finance research group with several of my students: Yang Xiaochen, Wang Zhe, Chen Yinmo, Zhang Li, and Lu Xianfeng. My earlier academic work with Yang Xiaochen on Bitcoin and internet finance—both published in 2014—marks a decade of continuous research into digital finance by our team.
Initially, our research focused on digital currencies such as Bitcoin, Libra, and central bank digital currencies (CBDCs). Since 2020, however, our efforts have intensified significantly, broadening into a more diverse range of topics within digital economics. The report you are about to explore captures the latest outcomes of our team’s ongoing research into the global digital economy.
Development of the TIMG Index
Wang Zhe, a postdoctoral researcher I collaborate with at the Institute of Finance, Chinese Academy of Social Sciences (CASS), earned her Ph.D. in economics from Nankai University in 2021 under Professor Jiang Dianchun. Her doctoral dissertation focused on global digital mergers and acquisitions, during which she developed an early framework for measuring digital economic development across major countries.
Upon joining our institute, I proposed that our team expand and refine her initial framework into a more systematic and comprehensive index—a public resource for academic use. This evolved into the TIMG Index, named after its four core dimensions: Technology, Infrastructure, Market, and Governance. Our first academic paper on the TIMG Index, titled "Measuring Global Digital Economic Development: Characteristic Facts Based on the TIMG Index," was published in Issue 6, 2021, of Financial Review.
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Research Applications and Index Refinement
Over the past two years, our team has pursued two primary objectives. First, we have applied the TIMG Index to produce quantitative academic research. For example, our 2022 paper in World Economic Studies, "Can Global Digital Economic Development Reduce Income Inequality?", utilized TIMG data to analyze socioeconomic impacts.
Second, we have continuously refined the index itself. The current version includes 4 first-tier indicators, 12 second-tier indicators, and 24 third-tier indicators, making it one of the most detailed frameworks available. The Global Digital Economy Development Index Report (TIMG 2023) reflects this enhanced methodology, covering 106 major economies from 2013 to 2021. We thank Gao Bei for valuable suggestions and Lu Xianfeng for meticulous data processing and verification.
Why These Four Dimensions Matter
The selection of Technology, Infrastructure, Market, and Governance as core pillars is grounded in strategic insight:
- Digital Technology drives innovation and shapes national competitiveness.
- Digital Infrastructure underpins scalability and access—its quality directly limits growth potential.
- Digital Markets benefit from network effects, long-tail opportunities, and economies of scale and scope.
- Digital Governance ensures trust, regulatory clarity, and sustainable development.
Overall findings indicate that market expansion and infrastructure development are the strongest drivers globally. Governance has seen accelerating progress, while technological advancement remains relatively slow.
Country Rankings and Development Trends
One of the TIMG Index’s most valuable functions is identifying a country’s overall digital maturity and relative strengths or weaknesses across dimensions—critical for policy planning.
In 2021:
- China ranked 8th globally, trailing only the United States, Singapore, the UK, Germany, the Netherlands, Japan, and France.
Among sub-indices:
- Digital Technology: 15th
- Digital Infrastructure: 3rd
- Digital Market: 2nd
- Digital Governance: 41st
From 2013 to 2021:
- China’s overall ranking improved by 14 positions.
Sub-index gains included:
- Digital Infrastructure (+18)
- Digital Governance (+18)
- Digital Technology (+4)
- Digital Market (+1)
United States and Singapore: Global Leaders
The United States maintains dominance across most categories:
- Ranked 1st overall
- Leads in Technology, Infrastructure, and Market
- Ranks 4th in Governance (behind Singapore, Finland, and Denmark)
Singapore stands out as a model of balanced development:
- 2nd overall
Strong performance across all areas:
- Infrastructure: 2nd
- Governance: 1st
- Technology: 6th
- Market: 13th
Geographically, high-ranking nations are concentrated in North America, Western Europe, and East Asia. In contrast, many countries in Africa and Latin America lag behind. Of the top 20 nations in 2021, 18 were developed economies—only China and the UAE were emerging markets.
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This disparity underscores a growing concern: the risk of an expanding digital divide.
Special Focus: Belt and Road Initiative Countries
Given that 2023 marked the tenth anniversary of the Belt and Road Initiative (BRI), this year’s report includes a dedicated analysis of digital development among BRI-participating countries.
Key findings:
- Since 2017, BRI countries have experienced faster digital growth than non-BRI counterparts.
However, significant regional disparities persist:
- Fast-developing regions: ASEAN, Central & Eastern Europe
- Slower-developing regions: Central Asia, South Asia
- Top performers: Singapore, China, UAE, Israel
- Lowest performers: Yemen, Laos, Kyrgyzstan
Digital Economic Cooperation on the Global Stage
The second special topic examines international cooperation in digital economics.
Findings show:
- Developed economies—including the EU, U.S., and UK—remain dominant in shaping global digital rules.
- A country’s level of international collaboration correlates positively with its domestic digital development level.
- Most nations currently partnering with China on digital initiatives are those with relatively lower digital maturity.
This suggests room for strategic partnerships that promote inclusive growth and capacity building.
Future Improvements and Academic Impact
On May 30, 2023, we officially launched the Global Digital Economy Development Index Report (TIMG 2023) at CASS Institute of Finance. Experts including Researcher Zhang Xiaojing (Director of CASS Institute of Finance), Professor Huang Zhuo (Peking University), Researcher Cai Yuezhou (Director of Digital Economy Division at CASS Institute of Quantitative & Technical Economics), and Mr. Li Zhenhua (Dean of Ant Group Research Institute) provided constructive feedback.
Suggestions for future enhancements include:
- Re-evaluating indicator weights to reflect market size importance
- Incorporating top scientist counts into technology metrics
- Adding infrastructure coverage and accessibility rates
- Assessing interdependencies among indicators
We plan to integrate these insights into next year’s edition.
A Vision for Sustainable Knowledge Contribution
This report marks our team’s first major publication on global digital economy measurement. It follows our earlier success with the China Overseas Investment Country Risk Rating Report (CROIC-IWEP), published annually from 2014 to 2020. That report earned recognition as a flagship product of the Institute of World Economics and Politics at CASS, winning multiple awards including inclusion in the Chinese Academy of Social Sciences’ Innovation Program outcomes and the China Think Tank Index (CTTI) annual highlights.
Our goal is for the TIMG Report to achieve similar status—an authoritative, transparent, and evolving public good that informs policymakers, academics, and industry leaders worldwide.
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 digital economic development.
Q: How many countries are included in the TIMG Index?
A: The index covers 106 major economies globally from 2013 to 2021.
Q: Why is China’s digital governance rank lower than other areas?
A: While China excels in infrastructure and market scale, regulatory transparency, legal frameworks, and cross-border data governance remain areas for improvement compared to leading nations.
Q: Is the TIMG Index updated annually?
A: Yes—the team aims to release an updated version each year with methodological improvements based on expert feedback.
Q: How can researchers access TIMG data?
A: Data will be made publicly available through academic channels; future reports may include open-access datasets.
Q: Can TIMG be used for investment decision-making?
A: While primarily a research tool, TIMG rankings offer valuable insights into long-term digital infrastructure strength and innovation potential relevant to strategic investment.
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