DOI: https://doi.org/10.36719/2789-6919/44/113-119
Fain Movlanov
Azerbaijan State University of Economics
Master student
https://orcid.org/0009-0003-3028-9677
fain.movlanov@mail.ru
Technology and Economy: The Impact of Digital Development
Abstract
Digital technologies are considered General Purpose Technologies (GPT), because they evolve over time and drive development in various fields. Research shows that investments in the internet and other information and communication technologies (ICT) are linked to economic growth. The increase in internet usage positively affects GDP growth. However, some researchers argue that the cause- and-effect relationship is uncertain and emphasize that the primary impact of the internet occurs through the development of international trade. While digital technologies create jobs, they may also eliminate some jobs in the short and medium term. Salaries increase for those who adapt to new technologies, but incomes decrease for those who fail to adapt, leading to growing inequality and a shrinking middle class. In poor countries, digital technologies provide not only economic benefits but also social and security advantages. Mobile phones and the internet enhance communication opportunities, stabilize market prices, and expand trade opportunities. Overall, digital technologies have a strong impact on the economy, but their cause-and-effect relationships are not fully determined, requiring further research.
Keywords: Digital Technology, General-Purpose Technology (GPT), Total Factor Productivity (TFP), Digital Infrastructure, Pareto Distribution