The effect of digital technology development on economic growth

Abstract

The article simulates the impact of the digital technologies’ development on economic growth, which makes it possible to find ways to improve the quality of various spheres of life and identify areas of the economy, the accelerated digitalization of which will ensure an increase in gross domestic product (GDP). The research used groupings of economic activities that directly influence the development of the digital economy. Using the data of regression models, the coefficients of GDP elasticity from the development of the studied sectors were calculated and used to forecast GDP under the development influence of the studied sectors while maintaining the existing trends. The dynamics of the e-commerce market development in Ukraine, the dynamics of production volumes of products (services) of the main types of economic activities in the field of digital transformation of the economy in Ukraine, the dynamics of financial results of enterprises in the information and telecommunications sector in Ukraine, the dynamics of capital investments in the field of information and communications of Ukraine, the dynamics of foreign investment in the development of the type of economic activity “information and telecommunications” in Ukraine, the dynamics of the development of the main areas of digitalization of the Ukrainian economy in 2010-2018 and the dynamics of GDP in actual prices were revealed. A correlation and regression analysis of the impact of the main indicators of the digital technologies sectors development on Ukraine's GDP is also carried out. The forecast extrapolation trend of production growth volumes of products and services in the information sector of Ukraine was built. A forecast of GDP growth in Ukraine has been constructed, taking into account the processes of digitalization of the economy in accordance with certain trends. The forecast dynamics of changes in GDP under the influence of the IT sector development until 2023 was also illustrated. It was found that Ukraine lags significantly behind most developed countries in terms of the level of industrial production development of information and communication technologies and equipment, Ukraine is completely import-dependent in this area. It has been proved that stimulating the development of information and communication technologies has significant prospects for activating digitalization processes in all spheres of the economy and society and increasing GDP.

Accounting, Audit, Analysis: Transformation of Science and Business in New Economic Reality Book of Extended Abstracts

“…The article substantiates the relevance of the processes of digitalization and informatization of the economy, which entail a systematic transition of the Russian economy to a fundamentally new level -digital (Irtyshcheva, 2020;Backhaus, 2021) . The use of modern digitalization tools ensures the stability of the company's existence in the new conditions (Rincón-Moreno, Ormazábal, Jaca, 2021) .…”

The Role of Digital Technologies in the Transformation of Regional Models of Households’ Financial Behavior in the Conditions of the National Innovative Economy Development

“…The digitalization of economy as an integral part of modern society is the object of study in the works [2][3][4][5][6][7][8][9], who in their research determined the current state of digital transformation, the impact of the development of digital technologies on the economic growth and well-being of the country, which makes it possible to find ways to improve the quality of various spheres of life and to determine the priority areas of the economy that are of paramount importance for the enrichment of the state.…”

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

“…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 ).…”