IDEAS home Printed from https://ideas.repec.org/a/ist/journl/v71y2021ixip283-316.html
   My bibliography  Save this article

Transition to the Digital Economy, Its Measurement and the Relationship between Digitalization and Productivity

Author

Listed:
  • Yasin Yilmaz

    (Bandirma Onyedi Eylul University, Department of Labor Economics and Industrial Relations, Balıkesir, Turkey)

Abstract

Technological developments have shown their effects in all areas of life, especially economy in the world. The most obvious examples of this are the Agricultural and Industrial Revolutions, which are economically based revolutions. Today, technological developments have changed dimensions with the digitalization process. Today technological transformation have been happening faster than it has been seen in the past, the human-machine cooperation in working life has been starting to turn in favor of machines and the mechanization and automation production, which is seen only in blue-collar jobs, is spread to all work areas including white-collar works, production as a result of robotization of the machines used in new automation (Cobot) The substitution of labor with these new technology products is among the most obvious features of this digitization period. The first aim of the study is to compare Turkey with the countries that should compete in the digitalization process. For this, International Digital Economy and Society Index (I-DESI) dimensions and indicators, which were created by the EU and used to measure the competitiveness of EU countries in the digitalization process, were used. Secondly, the effects of digitalization on productivity have been researched through a literature review. In the study; exploratory research from research design methods, secondary data from data types, and documentation method from qualitative research methods, were used. The scope of the study consists of the economic effects of the digitalization process. Technological developments increase productivity in both product and labor markets. For this reason, it is thought that the digitalization process will positively affect both total factor productivity and labor productivity. In addition, when examinations are made within the scope of I-DESI, it is seen that Turkey has not yet reached a sufficient level in the digitalization process.

Suggested Citation

  • Yasin Yilmaz, 2021. "Transition to the Digital Economy, Its Measurement and the Relationship between Digitalization and Productivity," Istanbul Journal of Economics-Istanbul Iktisat Dergisi, Istanbul University, Faculty of Economics, vol. 71(1), pages 283-316, June.
    • Handle: RePEc:ist:journl:v:71:y:2021:i:xi:p:283-316
    DOI: 10.26650/ISTJECON2020-833105
    as

    Download full text from publisher

    File URL: https://cdn.istanbul.edu.tr/file/JTA6CLJ8T5/895B30A8243041C9B28A2F2554E0B03C
    Download Restriction: no
    File URL: https://iupress.istanbul.edu.tr/en/journal/ije/article/dijital-ekonomiye-gecis-sureci-olcumu-ve-dijitallesme-verimlilik-iliskisi
    Download Restriction: no
    File URL: https://libkey.io/10.26650/ISTJECON2020-833105?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. David Autor & Anna Salomons, 2018. "Is Automation Labor-Displacing? Productivity Growth, Employment, and the Labor Share," NBER Working Papers 24871, National Bureau of Economic Research, Inc.
    2. Georg Graetz & Guy Michaels, 2018. "Robots at Work," The Review of Economics and Statistics, MIT Press, vol. 100(5), pages 753-768, December.
    3. Daron Acemoglu & Pascual Restrepo, 2018. "Modeling Automation," AEA Papers and Proceedings, American Economic Association, vol. 108, pages 48-53, May.
    4. Peter Gal & Giuseppe Nicoletti & Theodore Renault & Stéphane Sorbe & Christina Timiliotis, 2019. "Digitalisation and productivity: In search of the holy grail – Firm-level empirical evidence from EU countries," OECD Economics Department Working Papers 1533, OECD Publishing.
    5. William D. Nordhaus, 2021. "Are We Approaching an Economic Singularity? Information Technology and the Future of Economic Growth," American Economic Journal: Macroeconomics, American Economic Association, vol. 13(1), pages 299-332, January.
    6. Peter Gal & Giuseppe Nicoletti & Christina von Rüden & Stéphane Sorbe & Théodore Renault, 2019. "Digitalization and Productivity: In Search of the Holy Grail - Firm-level Empirical Evidence from European Countries," International Productivity Monitor, Centre for the Study of Living Standards, vol. 37, pages 39-71, Fall.
    7. Erik Brynjolfsson & Daniel Rock & Chad Syverson, 2018. "Artificial Intelligence and the Modern Productivity Paradox: A Clash of Expectations and Statistics," NBER Chapters, in: The Economics of Artificial Intelligence: An Agenda, pages 23-57, National Bureau of Economic Research, Inc.
    8. Jeffrey D. Sachs & Laurence J. Kotlikoff, 2012. "Smart Machines and Long-Term Misery," NBER Working Papers 18629, National Bureau of Economic Research, Inc.
    9. Dan Andrews & Chiara Criscuolo & Peter N. Gal, 2016. "The Best versus the Rest: The Global Productivity Slowdown, Divergence across Firms and the Role of Public Policy," OECD Productivity Working Papers 5, OECD Publishing.
    10. James Bessen, 2019. "Automation and jobs: when technology boosts employment," Economic Policy, CEPR, CESifo, Sciences Po;CES;MSH, vol. 34(100), pages 589-626.
    11. Filippo Bertani & Marco Raberto & Andrea Teglio, 2020. "The productivity and unemployment effects of the digital transformation: an empirical and modelling assessment," Review of Evolutionary Political Economy, Springer, vol. 1(3), pages 329-355, November.
    12. Flavio Calvino & Chiara Criscuolo & Luca Marcolin & Mariagrazia Squicciarini, 2018. "A taxonomy of digital intensive sectors," OECD Science, Technology and Industry Working Papers 2018/14, OECD Publishing.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Sylvia Jenčová & Petra Vašaničová & Marta Miškufová, 2023. "Multidimensional Evaluation of EU and Slovakia in the Context of Digital Transformation," Central European Business Review, Prague University of Economics and Business, vol. 2023(1), pages 65-95.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Marcello Nieddu & Filippo Bertani & Linda Ponta, 2022. "The sustainability transition and the digital transformation: two challenges for agent-based macroeconomic models," Review of Evolutionary Political Economy, Springer, vol. 3(1), pages 193-226, April.
    2. Filippo Bertani & Marco Raberto & Andrea Teglio, 2020. "The productivity and unemployment effects of the digital transformation: an empirical and modelling assessment," Review of Evolutionary Political Economy, Springer, vol. 1(3), pages 329-355, November.
    3. Michele Fornino & Andrea Manera, 2022. "Automation and the Future of Work: Assessing the Role of Labor Flexibility," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 45, pages 282-321, July.
    4. Nieddu, Marcello & Bertani, Filippo & Ponta, Linda, 2021. "Sustainability transition and digital trasformation: an agent-based perspective," MPRA Paper 106943, University Library of Munich, Germany.
    5. Jacobs, Arthur, 2023. "Capital-augmenting technical change in the context of untapped automation opportunities," Mathematical Social Sciences, Elsevier, vol. 123(C), pages 155-166.
    6. Nucci, Francesco & Puccioni, Chiara & Ricchi, Ottavio, 2023. "Digital technologies and productivity: A firm-level investigation," Economic Modelling, Elsevier, vol. 128(C).
    7. Claudio Battiati & Cecilia Jona-Lasinio & Silvia Sopranzetti, 2020. "Productivity growth and global value chain participation in the digital age," Economic Statistics Centre of Excellence (ESCoE) Discussion Papers ESCoE DP-2020-04, Economic Statistics Centre of Excellence (ESCoE).
    8. repec:gdk:wpaper:67 is not listed on IDEAS
    9. Alonso, Cristian & Berg, Andrew & Kothari, Siddharth & Papageorgiou, Chris & Rehman, Sidra, 2022. "Will the AI revolution cause a great divergence?," Journal of Monetary Economics, Elsevier, vol. 127(C), pages 18-37.
    10. Bertani, Filippo & Raberto, Marco & Teglio, Andrea & Cincotti, Silvano, 2021. "Digital Innovation and its Potential Consequences: the Elasticity Augmenting Approach," MPRA Paper 105326, University Library of Munich, Germany.
    11. Czarnitzki, Dirk & Fernández, Gastón P. & Rammer, Christian, 2023. "Artificial intelligence and firm-level productivity," Journal of Economic Behavior & Organization, Elsevier, vol. 211(C), pages 188-205.
    12. Venturini, Francesco, 2022. "Intelligent technologies and productivity spillovers: Evidence from the Fourth Industrial Revolution," Journal of Economic Behavior & Organization, Elsevier, vol. 194(C), pages 220-243.
    13. Yining Zhang & Zhong Wu, 2021. "Intelligence and Green Total Factor Productivity Based on China’s Province-Level Manufacturing Data," Sustainability, MDPI, vol. 13(9), pages 1-16, April.
    14. Henri Haapanala & Ive Marx & Zachary Parolin, 2023. "Robots and unions: The moderating effect of organized labour on technological unemployment," Economic and Industrial Democracy, Department of Economic History, Uppsala University, Sweden, vol. 44(3), pages 827-852, August.
    15. Gregory, Terry & Salomons, Anna & Zierahn, Ulrich, 2016. "Racing With or Against the Machine? Evidence from Europe," VfS Annual Conference 2016 (Augsburg): Demographic Change 145843, Verein für Socialpolitik / German Economic Association.
    16. Daron Acemoglu & Pascual Restrepo, 2018. "Modeling Automation," AEA Papers and Proceedings, American Economic Association, vol. 108, pages 48-53, May.
    17. Kerstin Hotte & Angelos Theodorakopoulos & Pantelis Koutroumpis, 2021. "Automation and Taxation," Papers 2103.04111, arXiv.org, revised Apr 2022.
    18. Parteka, Aleksandra & Kordalska, Aleksandra, 2023. "Artificial intelligence and productivity: global evidence from AI patent and bibliometric data," Technovation, Elsevier, vol. 125(C).
    19. Cusolito,Ana Paula & Lederman,Daniel & Pena,Jorge O., 2020. "The Effects of Digital-Technology Adoption on Productivity and Factor Demand : Firm-level Evidence from Developing Countries," Policy Research Working Paper Series 9333, The World Bank.
    20. Irene Bertschek & Franz Josef Pschierer & Michael Grömling & Markus Taube & Henning Klodt, 2019. "Global und Hidden Champions – Unternehmen verändern die Welt. Ist staatliche Regulierung möglich?," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 72(15), pages 03-19, August.
    21. Mr. Andrew Berg & Lahcen Bounader & Nikolay Gueorguiev & Hiroaki Miyamoto & Mr. Kenji Moriyama & Ryota Nakatani & Luis-Felipe Zanna, 2021. "For the Benefit of All: Fiscal Policies and Equity-Efficiency Trade-offs in the Age of Automation," IMF Working Papers 2021/187, International Monetary Fund.

    More about this item

    Keywords

    Digitization; Digital Economy; I-DESI; Productivity; Labor Productivity JEL Classification : J01 ; J21 ; J23;
    All these keywords.

    JEL classification:

    • J01 - Labor and Demographic Economics - - General - - - Labor Economics: General
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ist:journl:v:71:y:2021:i:xi:p:283-316. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Ertugrul YASAR (email available below). General contact details of provider: https://edirc.repec.org/data/ifisttr.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.