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DİGİTAL ECONOMİC DEVELOPMENT AND İTS İMPACT ON THE ECONOMY: LİTERARY REVİEW

 
25.03.2022 11:49
Автор: ASADOV ZAUR RAUF oglu, Lecturer at the Department of Economics and Management of the Azerbaijan State University of Oil and Industry, PhD in Economics; ALİZADE ELVİN VUGAR oglu, Dissertation student of the department "Economics and statistics" of the Azerbaijan Technical University
[Економічне спрямування]

The term "digital economy" is often associated with terms such as the Internet economy, the cloud economy, the sharing economy, and the on-demand economy. While each refers to a set of business activities, what they have in common is the use of digital technologies, including software applications, Internet infrastructure, and modern computers, to significantly improve existing business processes or create new and innovative ones. The digital products involved in a typical digital transformation are at the core of any definition of the digital economy.

There are three areas related to digital economic development: first, the construction of a digital economy development index; second, the sustainable economic impact of the digital economy; thirdly, empirical studies of the development of the digital economy. We will analyze the research done in these three areas of the digital economy.

Building the digital economy index

The measurement and analysis of the digital economy is crucial in national economic accounting [1–3]. The main index evaluation systems include the European Union (EU) Digital Economy and Society Index (DESI), the Organization for Economic Co-operation and Development (OECD) digital economy scorecard, the World Economic Forum (WEF) Networked Readiness Index (NRI), etc. [4 ,five]. In China, the main index evaluation systems are the Digital Economy Index (DEI) of the China Information and Communication Research Institute and the China Digital Economy Index (CDEI) of the Caixin think tank [6]. Many scientists around the world have conducted research on the index of development of the digital economy.

Errador and Hernandez analyzed the impact of digital information and communication technologies (ICT) on accounting education [7]. Fidan used the Gini method to determine the intersectoral development of the digital economy in Turkey and Lithuania [8]. Gravili et al. have explored the impact of the digital divide and digital alphabetization on big data generation in terms of value creation [9]. Coil and Nguyen noted that the economic digitalization revolution has seriously challenged the traditional concept and practice of economic measurement [10]. Sklyarov and Prokopov noted that the development of the digital economy is transforming the traditional economy from resource-consuming to resource-creating [11]. Fayyaz described the exponential growth of such e-commerce in Iran and analyzed the contribution of digital e-commerce to economic growth [12]. Otioma and others. analyzed the difference between the development of the digital economy in Kigali and the macro-spatial level [13]. The creation of an international index system laid the foundation for building a digital system of comprehensive economic assessment in China. However, due to differences in the levels of industrial development, industrial policy, and comprehensive national power in different cities above the prefecture level, they lead to the comprehensive evaluation system of the urban digital economy differs in different countries.

2. Sustainable and economic impact of the digital economy

The development of the digital economy will have a great impact on the sustainable development of the economy and society [14]. The development of the digital economy would have a stimulating effect on the development of the regional economy, but the development of the digital economy would lead to a huge digital divide [15,16]. Antonelli used a comparative approach to assess the "gaps" in relation to countries taking advantage of new technologies and concluded that the digital revolution is creating a global digital divide [17]. Using data from Australia's 2001 national census, Gibson found that Australia's digital divide has strong hierarchical and spatial characteristics [18]. Aprililianti et al. analyzed the digital divide in e-government among members of the Association of Southeast Asian Nations [19]. Rodichio-Carsia and others.

Murthy et al. noted that the global digital economy is dominated by developed countries; in particular, in the field of e-commerce, the digital divide between countries was obvious [21]. Garcia and Rodriguez discussed the impact of the COVID-19 pandemic on the education of the elderly [22]. Thanks to the above analysis of the literature and the development of the digital economy, the phenomenon of the digital economic divide is widespread.

Reference

1. Tapscott, D. The Digital Economy: Promise and Peril in the Age of Networked Intelligence; McGraw-Hill: New York, NY, USA, 1996; pp. 4–15.

2. Schreyer, P. The OCED Productivity Manual: A Guide to the Measurement of Industry-Level and Aggregate Productivity. Int. product. Monitor. 2001, 2, 37–51.

3. Kim, B.; Barua, A.; Whinston, A. Virtual Field Experiments for a Digital Economy: A New Research Methodology for Exploring an Information Economy. Decis. Support System. 2002, 32, 215–231.

4. Banhidi, Z.; Dobos, I.; Nemeslaki, A. What the Overall Digital Economic and Society Index Reveals: A Statistical Analysis of the DESI EU28 Dimensions. Reg. stat. 2020, 10, 42–62.

5. Szeles, M.R.; Simionescu, M. Regional Patterns and Drivers of the EU Digital Economy. soc. Indic. Res. 2020, 150, 95–119.

6. Li, ZQ; Liu, Y. Research on the Spatial Distribution Pattern and Influencing Factors of Digital Economy Development in China. IEEE Access 2021, 9, 63094–63106.

7. Herrador-Alcaide, TC; Hernandez-Solis, M. Accounting Education through Digital Innovation Networks: A Measurement of Its Impact. digital. Educ. Rev. 2016, 29, 247–264.

8. Fidan, H. Measurement of the Intersectoral Digital Divide with the Gini Coefficients: Case Study Turkey and Lithuania. Eng. Eco. 2016, 27, 439–451.

9. Gravili, G.; Benvenuto, M.; Avram, A.; Viola, C. The Influence of the Digital Divide on Big Data Generation within Supply Chain Management. Int. J. Logist. Manag. 2018, 29, 592–628.

10. Coyle, D.; Nguyen, D. Cloud Computing, Cross-Border Data Flows and New Challenges for Measurement in Economics. Natl. Inst. Eco. Rev. 2019, 249, R30-R38.

11. Skliarov, V.; Prokopov, O. Industry 4.0 and Digitalization of the National Measurement Standards. J. UK Metro. 2019, 3, 47–56.

12. Fayyaz, S. A Review on Measuring Digital Trade & E-commerce as New Economic Statistics Products. Int. J. Stat. Eco. 2019, 99, 57–68.

13. Otioma, C.; Madureira, A. M.; Martínez, J. Spatial analysis of urban digital divide in Kigali, Rwanda. GeoJournal 2019, 84, 719–741.

14. Ahmed, EM Modeling Information and Communications Technology Cyber Security Externalities Spillover Effects on Sustainable Economic Growth. J. Knowl. Eco. 2021, 12, 412–430.

15. Meng, Q.; Li, M. New Economy and ICT development in China. inf. Eco. Policy 2002, 14, 275–295.

16. Lopez, F.L.; Nanclares, N.H.; Vaco, CB The Digital Divide as a Challenge to the Knowledge Based Society. Rev. Eco. Mund. 2003, 8, 119–142.

17. Antonelli, C. The digital divide: Understanding the economics of new information and communication technology in the global economy. inf. Eco. Policy 2003, 15, 173–199.

18. Gibson, C. Digital Divides in New South Wales: A research note on socio-spatial inequality using 2001 Census data on computer and Internet technology. Aust. Geogr. 2003, 34, 239–257.

19. Rodicio-Carcia, M.L.; Rios-de-Deus, MP; Mosquear-Gonzalez, MJ; Abilleira, MP The Digital Divide in Spanish Student in the Face of the COVID-19 Crisis. Rev. Int. Educ. Para Justicia Soc. 2020, 3, 103–125.

20. Cortelyou-Ward, K.; Atkins, D.N.; Noblin, A.; Rotarius, T.; White, P.; Carey, C. Navigating the Digital Divide: Barriers to Telehealth in Rural Areas. J. Health Care Poor Underserved 2020, 31, 1546–1556.

21. Murthy, KVB; Kalsie, A.; Shankar, R. Digital Economy in a Global Perspective: Is there a Digital Divide? transnatl. Corp. Rev. 2021, 13, 1–15.

22. Garcia, KR; Rodrigues, L.; Pereira, L.; Busse, G.; Irbe, M.; Almada, M.; Christensen, C.; Midão, L.; Dias, I.; Heery, D.; et al. Improving the digital skills of older adults in a COVID-19 pandemic environment. Educ. Gerontol. 2021, 47, 196–206.



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