THE IMPACT OF DIGITIZATION ON ECONOMIC GROWTH AND HOW TO MEASURE IT
Keywords:
digital technologies, fintech, employment, productivityAbstract
The development of artificial intelligence and robotics has far-reaching economic and socio-political consequences, and some of them have already manifested themselves. However, the implications of further progress in these areas are not well understood. What will be the impact on human society if artificial intelligence at some point even becomes superior in all relevant cognitive, physical, and perhaps even emotional capacities? How will productivity and income increase be boosted by artificial intelligence, robotics and related technologies, and what will be the relationship between labor and capital? The digitization of the economy is not a new phenomenon. However, even though it has been going on for several decades, today there is a consensus that it has reached a turning point. The symbiosis between big data and robotics announces a new economy and, therefore, new business rules. Studies have shown that an increase of 1% in the use of the Internet and mobile phones has led to an increase in economic growth by 0.12 percentage points. In the period 1993–2007. year, more frequent use of robots led to an increase in annual GDP growth and labor productivity by 0.37 and 0.36 percentage points, respectively. OECD estimates suggest that an increase in the share of digital technologies in the company's business processes by 10 percentage points, led to an increase in multifactor productivity by 1.4% after one year, or an increase in multifactor productivity of 3.9% after 3 years. Digital technologies have a strong impact on many areas of the economy. As we have seen the impact of digital technologies on labor productivity exists and tends to become even more significant. A very important factor that enables the positive externalities of digitization to be manifested in the right way is the need for the existence of infrastructure and financial inclusion that would enable the benefits of digitization to be manifested in the right way. We have seen that the analysis of OECD countries clearly shows a correlation between the implementation of digital technologies and productivity growth. This is especially clear when comparing digitally intensive branches with branches that are not primarily oriented towards digital technologies. Companies that have better access to key technical, managerial, and organizational skills have benefited more from digitization than other companies. These companies have already tended to be more productive than average companies, and digitization has contributed to increasing their advantage
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