DIGITALIZATION OF THE WORLD ECONOMY: THEORETICAL AND POLITICAL ASPECTS

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  Roman Moskalyk

  Liana Moskalyk

Abstract

The purpose of this article is to explore the theoretical background of the digitalization of the world economy, focusing on the channels of influence of digitalization on economic growth. There is also a discussion of policy priorities to enhance the positive effects and limit the negative effects of digitalization. Systematic and comparative analysis methods were used. The main conclusions are that early research on the impact of digital technology on economic growth has failed to fully explain the sustained correlation between digitalization and productivity, mainly because of the limitations of available statistics in the past. Recent studies largely suggest that digital technology can have a positive impact on productivity through channels such as robotics that increase productivity on assembly lines, autonomous machines and intelligent systems that increase data analysis and operations productivity, automated maintenance scheduling that increases productivity by reducing downtime due to breakdowns, 3-D printing technology that increases productivity through rapid production of parts, reducing the supply chain, innovative materials that reduce costs and processing time, informatics that reduce costs and reanalysis time. It is argued that, in reality, these channels may have much less impact on productivity than their potential, due to a number of market characteristics and policy constraints. The phenomenon of the digital divide includes unequal income distribution, unequal access to technology, and risks of increased unemployment, etc. Thus, effective, comprehensive policies to promote digitalization at various levels can have an important impact on the economic and social goals of the nation. Recommendations are given to solve the problem of the "digital divide" as follows: improving skills and technical knowledge, providing high-speed Internet in rural and remote areas, redistribution of labor and capital, competition policy tools in case of a large influence of platform business on markets, reducing financial constraints for young innovative firms and start-ups, transition to public digital services, digital-friendly policy for the elderly population.

How to Cite

Moskalyk, R., & Moskalyk, L. (2021). DIGITALIZATION OF THE WORLD ECONOMY: THEORETICAL AND POLITICAL ASPECTS. Green, Blue & Digital Economy Journal, 2(3), 20-26. https://doi.org/10.30525/2661-5169/2021-3-4
Article views: 66 | PDF Downloads: 73

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Keywords

digitalization, digital economy, digital technology, economic growth, productivity, policy

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