Digitalization as a driver of economic growth: Does only infrastructure matters?

E. Ponomareva
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E. Ponomareva: Institute of Control and Supervision, Russian Presidential Academy of National Economy and Public Administration, Moscow, Russia

Journal of the New Economic Association, 2021, vol. 51, issue 3, 51-68

Abstract: The development of digital technologies leads to significant changes in all sectors of the economy. However, digital transformation is a complex process, depending on various factors, such as the availability of digital infrastructure, the level of readiness of digital technologies, the availability of qualified personnel who are able not only to collect data, but also to identify dependencies in them and use these results to increase productivity and scale different types of activities. During the coronavirus pandemic, the relevance of the introduction of digital technologies increases due to the need for social distancing, including the exclusion of a person from certain stages of production, as well as the need to coordinate a large number of people and devices not related to workplace. This article considers the impact of digital technology development on macroeconomic parameters, in particular, economic output by analyzing the system of simultaneous equations that takes into account not only the production function of the economy, but also the equilibrium in the ICT services sector on the data of Russian regions. The obtained results show that along with the possibility to use broadband access to the Internet, the quality of its use also matters: 1% growth in the number of broadband access subscribers on average leads to a 0,1% increase in output, in addition, an increase in the intensity of digital technology use on 1% leads to an additional 0,05% increase in output.

Keywords: digital economy; economic growth; new technologies; ICT sector; online platforms (search for similar items in EconPapers)
JEL-codes: C33 L96 O47 R58 (search for similar items in EconPapers)
Date: 2021
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:nea:journl:y:2021:i:51:p:51-68

DOI: 10.31737/2221-2264-2021-51-3-3

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