The Digital Economy: Controversity of Content and Impact on Economic Development

Abstract

The transformations of the technological structure of current economy have led to the emergence of digital economy that offers significant opportunities and, at the same time, creates threats. The article is aimed at displaying methodological approaches to interpretation of digital economy, contradiction of the possible results of its development and functioning, and the practical relevance of research into this phenomenon. The digital economy transforms economic interactions; destroys long chains of intermediaries; speeds up the conclusion of different agreements; eliminates spatial constraints in access to markets; offers competitive advantages to companies regardless of their size; enables to create a scale effect and materialize its positive impact by reducing costs. At the same time, in developed countries and industry sectors that can easily be automated, the need for low-and medium-skill workers is severely reduced. A more part-time economy is being formed, with engagement of freelancers who are not covered by the social security system on a short-term basis. These processes threaten the stability of incomes and the development of the national economy. A comparative analysis of the development of digital economy uses the indices that can form the basis of the national economic foresight.

Keywords

• digital economy
• contradictoriness in results of formation of digital economy
• digital economy development indices