The Impact of the Digitalization Process and Investment on the Structural Changes of the Economy

Abstract

This article analyzes the impact of digitalization on the structural changes of the economy on the example of Uzbekistan. The degree of effectiveness of the investment factor in such circumstances is also considered. The research work of a number of scientists has been studied and the necessary aspects for research have been presented. The main factor determining the level of digitalization is the gross value added of the digital economy to GDP. The next factor influencing structural change is the inflow of investment in fixed assets. An econometric analysis was performed to determine the relationship between the factors and a conclusion was drawn based on the results. The study was conducted for the period 2016-2020 of the Uzbekistan's economy. The article also theoretically explores and analyzes structural changes in the economy, its impact on economic development, factors influencing structural changes, and the impact of investment flows on the economy and structural changes. The study found a strong correlation between GDP and gross value added in the ICT sector. In addition, the analysis found that investment has a positive effect on structural changes, as a result of increased investment in fixed assets increases both the volume of GDP and the level of structural change.