Digitalization and its impact on economic growth

Abstract

Digitalization transforms the traditional concepts of economic growth and competitiveness. This article studies the effect of digitalization on Russia’s economic growth. As indicators measuring the impact of digitalization processes on economic growth, the study used the Gross Domestic Product per capita, the Global Competitiveness Index, the Index of Digital Life, the Digital Adoption Index, and the Resilience Index. Their in-depth examination based on a three-pronged model showed that the state of the macroenvironment and the readiness of the population for digital transformation do not allow digital technologies to affect the economic growth rate seriously.

Role of digitalization in environment, social and governance, and sustainability: Review-based study for implications

“…Thus, enhancement in digitalization leads to sustainable development, as evident in the extensive existing literature and theory mentioned ( Irtyshcheva, 2021 ; Aleksandrova et al, 2022 ; Noeh et al, 2022 ; Novikova et al, 2022 ; Ren et al, 2022 ). Hence, the hypothesis – digitalization leads to sustainable development is valid.…”

“…Regarding the role of digitalization on economic growth and sustainable development, the scholarly literature is extensive. For instance, the recent studies of Irtyshcheva (2021) , Aleksandrova et al (2022) , and Hosan et al (2022) empirically asserted that digitalization substantially replaces the traditional techniques of economic growth as well as competitiveness, enhances the productivity of the industrial sector, trade, and other economic activities by conserving fewer resources and production of lesser pollution, which leads to sustainable development. However, digitalization varies from country to country, where the earlier European Union (EU) economies are performing better with diversity in digitalization, while the new EU economies are lagging in the field of digitalization ( Brodny and Tutak, 2022a ).…”

Цифровізація Економіки Як Фактор Стійкого Розвитку Держави На Тлі Масштабної Воєнної Агресії (Український Досвід)

“…First of all, it is necessary to assess Ukraine's ranking in terms of GDP per capita, since the generally accepted way of measuring economic growth is to measure changes in the output or real income of the population (Aleksandrova et al, 2022). The UN System of National Accounts offers three indicators for calculating growth: GDP, real gross income, and real gross national income.…”

“…The high level of ICT adoption in Ukraine (38th place) indicates the expected positive impact of economic recovery on the spread of ICT. In order to confirm or refute this assumption it is necessary to take into account digitalization indicators and the stability of the macro environment (Aleksandrova et al, 2022).…”

“…It should be taken into account that this is an integral characteristic, which determines the position of the country in the rating and averages the factors affecting sustainability. Specifically, the GRI combines 12 key sustainability factors, classified as related to economic factors, risk quality factors, and supply chain factors (Aleksandrova et al, 2022). The fourth parameter, the country ranking describes the overall situation in the context of sustainability.…”