How to evaluate the digital economy scale and potential?

Abstract

Technological progress is synonymous with current and past changes. In the past these changes led to increased efficiency of production. Driving forces behind today's technological progress are digital technologies. Emergence of digital businesses significantly contributes to a new type of economy, which acquires the adjective digital. Building on the experience gained from the technological advances of past centuries, digital technologies, which make the digital economy by the mass use of them, are and will be an important factor influencing economic growth. Therefore, the aim of this article is to propose the measure of the scale and potential of digital economy. Measurements are realized in the form of composite indicator designed for the policymakers that deal with the creation of strategies for further growth and the direction of national economies. This composite indicator consists of individual indicators related to tree areaseconomy, labour and skills, that can be used to determine the scale and the potential of the digital economy. The scale of the digital economy varies across the examined countries. An interesting finding is the fact that the scale of the digital economy is not conditioned by the geographical or economic scale of the state.

Does digital economy promote sustainable development: Case of EU countries?

“…Scientists agree that the digital economy could be treated as an instrument to extend economic growth (Chinoracky and Corejova 2021;Laitsou, Kargas, and Varoutas 2020), which, in turn, is a part of the sustainable development concept. However, not all scientists focus on such a general phenomenon as economic growth but rather on more narrow fields of the economy.…”

A Study on Evaluation of Digital Economic Development Level Based on Fuzzy Comprehensive Evaluation — — Taking the Yangtze River Delta as an example

“…Chinese and foreign scholars have studied the measures of digital economic development. Foreign scholars Chinoracky R and Corejova T [2] measured digital economic scale using three indicators: economy, labor and technology. Domestic scholars Zheng Ganwen and Ye Azhong [3] measured the digital economic development level using principal component analysis based on panel data from 241 prefecture-level cities across the country from 2011 to 2018; Liao Xinlin and Yang Zhengyuan [4] measured manufacturing upgrading level and digital economic development level in sample cities with a entropy value method, using panel data from 41 prefecture-level cities within the Yangtze River Delta from 2015 to 2019.…”

Digital and Sharing Economy for Sustainable Development: A Bibliometric and Systematic Review

“…While the benefits of the digital economy have been well discussed, especially since the dawn of the Fourth Industrial Revolution, it too poses a set of problems that are yet to be solved, mainly in terms of its definition, as it is subject to the fluidity of domestic parameters. At the present state of the technological revolution and the adoption of high technological systems, such as Big Data and Internet of Things (IoT), many economists and studies are citing the role of information technology and communication (ICT) infrastructure to represent the factor of digitalization, or at least part of it (Abendin and Duan 2021;Baranov 2022;Chinoracky and Corejova 2021;Jiang 2020;Kurniawati 2022;Li et al 2021b;Su et al 2021). There is a prevalence in differing quality and availability of indicators and methodologies across economies, leaving a gap in the digital economy ecosystem and giving rise to the need of a dynamic and agile framework (OECD 2020).…”

“…The spillover effect of technological progress increases the capacity of business activities and production in a broader range and variety, all while reducing costs across all layers, creating development opportunities and avenues for more economic activities (Bonciu and Bâlgăr 2016). As opposed to unbacked opinions on the mechanization and digitalization across sectors removing job prospects from the markets, digitalization promotes employment absorption based on the development of industries and sectors, thus requiring more human capital to support the expansion and making it a factor to be included in digitalization-related indexes, calculations and considerations (Chinoracky and Corejova 2021;Jiang 2020;Li et al 2021c;Pouri and Hilty 2018;Su et al 2021).…”