Digitalization of economies of low and middle income countries in the context of digital transformation
Keywords:
digital technologies, digitalization of the economy, innovative transformations, structural transformations, transformation of the economy.
Abstract
The article aims to quantify the relationship of the introduction of digital technologies on innovation, structural transformation of low- and middle-income economies through the correlation analysis of indicators of technological development (productivity of sectors) and structural transformation of Uzbekistan and Ukraine ( share of value-added and employment of sectors of the economy) for 1991-2019 to assess the relationship between technology and structural shifts through the channels of value-added and employment. It is revealed that Ukraine and Uzbekistan have undergone structural transformations of the economy in favor of the service sector, while the agricultural and industrial sectors produce less and less. If Uzbekistan remains the industrial-agrarian country with an aggregate share of the added value of these sectors 59% in 2019, Ukraine transits to the post-industrial type of economy where the added value of the service sector in GDP grows (55% compared to agrarian and industrial sectors at 42%).
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References
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Burtch, G., Carnahan, S., & Greenwood, B. N. (2018). Can you gig it? An empirical examination of the gig economy and entrepreneurial activity. Management Science, 64(12), 5497-5520.
Fitzgerald, M., & Battilana, D. (2014). Fantasia: music evolved. In ACM SIGGRAPH 2014 Computer Animation Festival (pp. 1-1).
Freire, C. (2021). Technological transformation and innovation for economic diversification and structural transformation in CDDCs. United Nations conference on trade and development https://unctad.org/system/files/non-official-document/DITC_COM_2021_D_BN03_en.pdf
Hoberg, P., Krcmar, H., & Welz, B. (2017). Skills for digital transformation. Technical university of Munich, chair for information systems, Study.
Huang, J., Henfridsson, O., Liu, M. J., & Newell, S. (2017). Growing on steroids: Rapidly scaling the user base of digital ventures through digital innovation. Mis Quarterly, 41(1).
Kenney, M., & Zysman, J. (2016). The rise of the platform economy. Issues in science and technology, 32(3), 61.
Lyytinen, K., Yoo, Y., & Boland Jr, R. J. (2016). Digital product innovation within four classes of innovation networks. Information Systems Journal, 26(1), 47-75.
Malone, T. W. (2018). How human-computer 'Superminds' are redefining the future of work. MIT Sloan management review, 59(4), 34-41.
Martin, K. (2018). The penalty for privacy violations: How privacy violations impact trust online. Journal of Business Research, 82, 103-116.
Mysachenko, V. I., Komarov, V. Y., & Reshetov, K. Y. (2020). Innovation and structural transformation of industry. In Complex Systems: Innovation and Sustainability in the Digital Age (pp. 257-265). Springer, Cham.
Nambisan, S. (2017). Digital entrepreneurship: Toward a digital technology perspective of entrepreneurship. Entrepreneurship theory and practice, 41(6), 1029-1055.
Nambisan, S., Lyytinen, K., Majchrzak, A., & Song, M. (2017). Digital Innovation Management: Reinventing innovation management research in a digital world. MIS quarterly, 41(1).
Nambisan, S., Wright, M., & Feldman, M. (2019). The digital transformation of innovation and entrepreneurship: Progress, challenges and key themes. Research Policy, 48(8), 103773. https://doi.org/10.1016/j.respol.2019.03.018
Rayna, T., Striukova, L., & Darlington, J. (2015). Co-creation and user innovation: The role of online 3D printing platforms. Journal of Engineering and Technology Management, 37, 90-102.
Shadibekova, D. (2019). Challenges on digital economy in sample of various income economies as a development instrument in Uzbekistan. Scientific research archive [Arkhiv nauchnykh issledovaniy] . American Journal of economics and business management, 2(2).
Schwertner, K. (2017). Digital transformation of business. Trakia Journal of Sciences, 15(1), 388-393.
Sorenson, O., Assenova, V., Li, G. C., Boada, J., & Fleming, L. (2016). Expand innovation finance via crowdfunding. Science, 354(6319), 1526-1528.
Svahn, F., Mathiassen, L., & Lindgren, R. (2017). Embracing Digital Innovation in Incumbent Firms: How Volvo Cars Managed Competing Concerns. MIS Q., 41(1), 239-253.
von Briel, F., Recker, J., & Davidsson, P. (2018). Not all digital venture ideas are created equal: Implications for venture creation processes. The Journal of Strategic Information Systems, 27(4), 278-295.
World Bank (2021a). Communications, computer, etc. (% of service exports, BoP) - United Kingdom. https://data.worldbank.org/indicator/BX.GSR.CMCP.ZS?locations=GB
World Bank (2021b). Uzbekistan. https://data.worldbank.org/country/uzbekistan?view=chart
World Bank (2021c). Ukraine. https://data.worldbank.org/country/ukraine
Younkin, P., & Kashkooli, K. (2016). What problems does crowdfunding solve? California Management Review, 58(2), 20-43.
Zysman, J., & Kenney, M. (2018). The next phase in the digital revolution: intelligent tools, platforms, growth, employment. Communications of the ACM, 61(2), 54-63.
Published
2022-04-20
How to Cite
Kulinich, T., Lisnievska, Y., Zimbalevska, Y., Trubnik, T., & Obikhod, S. (2022). Digitalization of economies of low and middle income countries in the context of digital transformation. Amazonia Investiga, 11(51), 300-311. https://doi.org/10.34069/AI/2022.51.03.30
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