ANALYZING THE IMPORTANCE OF DIGITALIZATION OF ECONOMY IN DEVELOPING COUNTRIES

Abstract

The pace of economic activity has altered dramatically as a result of digital technology. The role of digitalization in the economy has grown over time, especially since the advent of industrial revolution 4.0. This study intends to investigate the importance of economic digitalization for developing countries by comparing different economies (developed, developing, least developed). This project makes use of comparison assessment index system based on the idea and traits of the digital economy from three perspectives: digital economy infrastructure, openness of the digital economy, environment for innovation, and competitiveness needed for the advancement of digital technology. Findings demonstrate that, despite a clear geographical imbalance in the development of the digital economy in those nations, the digital economy has a very favorable impact on their economic growth. Furthermore, the findings reveal a long-term steady link between technological innovation and its drivers, including the digital economy, bank financing of R&D spending, GDP, and financial risk.