The Effectiveness of Digital Technologies and Economic Growth

Abstract

The article describes the impact of digital technologies on the level of social and economic development of the society, provides a rating of the largest IT companies in terms of the volume of business capitalization. The necessity of digital transformation of the management of the socio-economic development of society and organizations is substantiated. 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. 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. The results showed 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.

Digital transformation and economic development: A review of emerging technologies' impact on national economies

“…Emerging technologies are fundamentally reshaping the landscape of economic growth, offering new pathways for development and transformation. Mshvidobadze (2022) highlights the significant impact of digital technologies on the social and economic development of societies. The study underscores the necessity of digital transformation in managing socio-economic development, demonstrating how digitalization influences GDP growth.…”

“…The study underscores the necessity of digital transformation in managing socio-economic development, demonstrating how digitalization influences GDP growth. The research provides a compelling forecast of GDP growth under the influence of the IT sector, illustrating the potential of digital technologies to stimulate economic growth across various sectors (Mshvidobadze, 2022). Zhao et al (2022) delve into the dynamic influence of digital and technological advancement on sustainable economic growth, particularly in the context of the Belt and Road Initiative (BRI) countries.…”