Digital and economic transformations for sustainable development promotion: A case of OECD countries
-
DOIhttp://dx.doi.org/10.21511/ee.12(1).2021.12
-
Article InfoVolume 12 2021, Issue #1, pp. 140-148
- Cited by
- 845 Views
-
184 Downloads
This work is licensed under a
Creative Commons Attribution 4.0 International License
Digitalization, dematerialization of production and consumption, and structural shifts in the direction of service economy forming do promote to reduction of material use and sustainable development. The paper aims to investigate the role of digital, structural, economic, and social factors in sustainable development promotion in OECD countries. The paper uses the data on digital achievements, social and economic development of OECD member states from World Bank data sources for the period 2007–2018. The random-effects GLS regression model is used, and empirical regression models to estimate the influence of key factors related to digital transformation on GDP per capita and CO2 emissions per capita are constructed. The results of the regression analysis show that using the number of Internet users as an indicator for achievement in digitalization has a positive and statistically significant influence on GDP per capita due to lower transaction costs and higher share service economy. An increase in urbanization rates (as an indicator of capital concentrations and labor specialization) by one percent promotes a GDP per capita increase of 299 USD. Also, an increase in Gini coefficient by one percentage point correlates with decrease in GDP per capita on 196 USD and the reduction of CO2 per capita by 0.12 tones due to the structural shifts in aggregate demand. Still, improvements in digital transformations have no significant environmental effect in OECD members, while processes related to urbanization, income inequality, and share of industrial output are important drivers for CO2 per capita reduction.
Acknowledgments
The paper contains the results of a study conducted within the framework of research projects: “Sustainable development and resource security: from disruptive technologies to digital transformation of Ukrainian economy” (No. 0121U100470); “Fundamental bases of the phase transition to an additive economy: from disruptive technologies to institutional sociologization of decisions” (No. 0121U109557).
- Keywords
-
JEL Classification (Paper profile tab)O30, O44, Q01, Q50
-
References33
-
Tables2
-
Figures0
-
- Table 1. Impact of digital factors on GDP per capita (in constant prices)
- Table 2. Impact of digital factors on CO2 emissions per capita
-
- Balsmeier, B., & Woerter, M. (2019). Is this time different? How digitalization influences job creation and destruction. Research policy, 48(8), 103-112.
- Benetyte, R., Rubio, J. G., Kovalov, B., Matviychuk-Soskina, N., & Krusinskas, R. (2021). Role of R&D expenditure, CEO compensation and financial ratios for country’s economic sustainability and innovative growth. International Journal of Global Energy Issues, 43(2-3), 228-246.
- Bhutani, S., & Paliwal, Y. (2015). Digitalization: a step towards sustainable development. OIDA International Journal of Sustainable Development, 8(12), 11-24.
- Elding, C., & Morris, R. (2018). Digitalisation and its impact on the economy: insights from a survey of large companies. Economic Bulletin Boxes, 7.
- European Central Bank. (n.d.). ECB surveys.
- European Commission. (2021). The Digital Economy and Society Index (DESI).
- Gebler, M., Uiterkamp, A. J. S., & Visser, C. (2014). A global sustainability perspective on 3D printing technologies. Energy Policy, 74, 158-167.
- GeSI. (n.d.). SMARTer 2030.
- Grytten, O. H., Lindmark, M., & Minde, K. B. (2020). The wealth of nations and sustainable development: energy intensity and the environmental Kuznets curve. Environmental Economics, 11(1), 110-123.
- Jovanović, M., Dlačić, J., & Okanović, M. (2018). Digitalization and society’s sustainable development – Measures and implications. Zbornik radova Ekonomskog fakulteta u Rijeci: časopis za ekonomsku teoriju i praksu, 36(2), 905-928.
- Kahouli, B. (2019). Does static and dynamic relationship between economic growth and energy consumption exist in OECD countries? Energy Reports, 5, 104-116.
- Karintseva, O., Kharchenko, M., Boon, E. K., Derykolenko, O., Melnyk, V., & Kobzar, O. (2021). Environmental determinants of energy-efficient transformation of national economies for sustainable development. International Journal of Global Energy Issues, 43(2-3), 262-274.
- Kartanaitė, I., Kovalov, B., Kubatko, O., & Krušinskas, R. (2021). Financial modeling trends for production companies in the context of Industry 4.0. Investment Management and Financial Innovations, 18(1), 270-284.
- Klymchuk, O., Khodakivska, O., Kovalov, B., Brusina, A., Benetyte, R., & Momotenko, I. (2020). World trends in bioethanol and biodiesel production in the context of sustainable energy development. International Journal of Global Environmental Issues, 19(1-3), 90-108.
- Kurbatova, T., Sotnyk, I., Baranchenko, Ye., Arakpogun, E., & Roubik, H. (2020). State support policy for renewable energy development in emerging economies: the case of Ukraine. International Journal of Global Environmental Issues, 19(1-3), 26-52.
- Makarenko, I., Plastun, A., Situm, M., Serpeninova, Y., & Sorrentino, G. (2021). Meta-analysis of the literature related to SDG 3 and its investment. Public and Municipal Finance, 10(1), 119-137.
- McKinsey & Company. (2020). How COVID-19 has pushed companies over the technology tipping point – and transformed business forever (Report).
- Melnyk, L. (2021). Socio-natural antientropic potential: the role of economy and innovations. Environment, Development and Sustainability, 23(3), 3520-3542.
- Melnyk, L. G., Shkarupa, E. V., & Kharchenko, M. O. (2013). Innovative strategies to increase the economic efficiency of greening the economy. Middle East Journal of Scientific Research, 16(1), 30-37.
- Melnyk, L., Dehtyarova, I., Kubatko, O., Karintseva, O., & Derykolenko, A. (2019). Disruptive technologies for the transition of digital economies towards sustainability. Economic Annals-XXI, 179(9), 22-30.
- OECD. (2019). Measuring the Digital Transformation: A Roadmap for the Future.
- Price Waterhouse Coopers. (2013). Digitization for economic growth and job creation.
- Rayna, T., & Striukova, L. (2021). Assessing the effect of 3D printing technologies on entrepreneurship: An exploratory study. Technological Forecasting and Social Change, 164, 120483.
- Ruihui, P., Xiang, L., & Pujiayi, Ch. (2021). Sustainable development and sharing economy: A bibliometric analysis. Problems and Perspectives in Management, 19(4), 1-19.
- Shevchenko, H., Petrushenko, M., Burkynskyi, B., & Khumarova, N. (2021). SDGs and the ability to manage change within the European green deal: The case of Ukraine. Problems and Perspectives in Management, 19(1), 53-67.
- Shkarupa, O. V., Karintseva, O. I., & Zhukova, T. A. (2017). Ecological modernization of the transport system in Sumy for green growth of economics. International Journal of Ecology and Development, 32(3), 75-85.
- Sineviciene, L., Hens, L., Kubatko, O., Melnyk, L., Dehtyarova, I., & Fedyna, S. (2021). Socio-economic and cultural effects of disruptive industrial technologies for sustainable development. International Journal of Global Energy Issues, 43(2-3), 284-305.
- The World Bank. (n.d.a). Digital Development.
- The World Bank. (n.d.b). World Bank Open Data.
- United Nations. (n.d.a). Sustainable Development Goals.
- United Nations. (n.d.b). Human Development Data Center.
- Veklych, O., Karintseva, O., Yevdokymov, A., & Guillamon-Saorin, E. (2020). Compensation mechanism for damage from ecosystem services deterioration: Constitutive characteristic. International Journal of Global Environmental Issues, 19(1-3), 129-142.
- Zhang, W., Zhao, S., Wan, X., & Yao, Y. (2021). Study on the effect of digital economy on high-quality economic development in China. PloS one, 16(9), 257-365.