Digitalization’s Effect on the Sectoral Structure Change in the Economy: a Comparative Analysis of Ukraine and Selected Countries

Olha Pizhuk; Larysa Lazebnyk; Hanna Mamonova

doi:10.18778/1508-2008.25.11

Authors

Olha Pizhuk Doctor of Econ. Sci., Associate Professor of the Department of Enterprise’s Economy, State Tax University, Irpin', Ukraine https://orcid.org/0000-0002-5802-1053
Larysa Lazebnyk Doctor of Econ. Sci., Associate Professor of the Department of Enterprise’s Economy, State Tax University, Irpin', Ukraine https://orcid.org/0000-0003-2234-4093
Hanna Mamonova Ph.D. (Physics and Math), Associate Professor of the Department of Computer Mathematics and Information Security, National Economic University named after V. Hetman, Kyiv, Ukraine https://orcid.org/0000-0001-5847-2076

DOI:

https://doi.org/10.18778/1508-2008.25.11

Keywords:

the sectoral structure of the economy, digital transformation, Markov chains, gross value added, the sectoral structure of employment

Abstract

This article examines the impact of digital transformation on changes in the sectoral structure of Ukraine’s economy, other post‑communist countries, and countries with highly developed economies. Firstly, we estimate the structural changes and differences in the sectoral model by gross value‑added and sectoral employment model by country using Ryabtsev’s index. Secondly, we calculated the forecast of changes in the researched economies' sectoral structures for 2021 and 2025 using discrete Markov processes. The forecasts made it possible to determine the direction of socio‑economic progress of highly developed and post‑communist countries. Thirdly, assuming that the development of ICT technologies caused the sectoral changes identified as a result of the assessment, we analyzed available level ratings of the digital transformation of the selected economies and named global trends in ICT. Finally, we determined the impact of the ICT index on the substantiality of sectoral changes in the economies of post‑communist countries and countries with highly developed economies. The study results allowed us to conclude that digital technology development affects the economy’s structural changes indirectly due to the reallocation of labor resources from one sector to another. The article substantiates the need to improve the economy’s sectoral model by adding industries related exclusively to the digital economy.

Downloads

Download data is not yet available.

References

Bell, D. (1973), The Coming of Post‑Industrial Society. A Venture in Social Forecasting, Basic Books, Inc., New York.
Google Scholar

Bilotserkivets, O., Kryuchkova, I. (2007), Strukturna harmonizatsiia ekonomiky iak chynnyk ekonomichnoho zrostannia [Structural harmonization economy as Factor of Economic Growth], Ekpres, Kyiv.
Google Scholar

Bukht, R., Heeks, R. (2017), Defining, conceptualising and measuring the digital economy, “Development Informatics. Working Paper Series”, No. 68, https://diodeweb.files.wordpress.com/2017/08/diwkppr68-diode.pdf (accessed: 20.04.2021).
Google Scholar

Chakravorti, B., Chaturvedi, R. (2017), Digital planet 2017 how competitiveness and trust in digital economies vary across the World the Fletcher School, The Fletcher School, Tufts University, Medford, https://sites.tufts.edu/digitalplanet/files/2020/03/Digital_Planet_2017_FINAL.pdf (accessed: 22.04.2021).
Google Scholar

Clark, C. (1940), The Conditions of Economic Progress, Macmillan, London.
Google Scholar

Eurostat (2019), ICT sector – value added, employment and R&D – Statistics Explained, https://ec.europa.eu/eurostat/statistics-explained/index.php?title=ICT_sector_-_value_added,_employment_and_R%26D (accessed: 1.01.2022).
Google Scholar

Federal State Statistics Service (2019), National Accounts – Federal State Statistics Service, https://eng.rosstat.gov.ru/folder/13913 (accessed: 1.01.2022).
Google Scholar

Fisher, A.G.B. (1939), Production, primary, secondary and tertiary, “Economic Record”, 15 (1), pp. 24–38.
Google Scholar DOI: https://doi.org/10.1111/j.1475-4932.1939.tb01015.x

Fourastié, J. (1949), Le grand espoir du XXe siècle: Progrès technique, progrès économique, progrès social, Presses Universitaires de France, Paris.
Google Scholar

Gaißer, S., Schmid, F. (2010), On testing equality of pairwise rank correlations in a multivariate random vector, “Journal of Multivariate Analysis”, 101 (10), pp. 2598–2615, https://doi.org/10.1016/j.jmva.2010.07.008
Google Scholar DOI: https://doi.org/10.1016/j.jmva.2010.07.008

Heyets, V., Shynkaruk, L., Artemova, T. (2011), Strukturni zminy ta ekonomichnyj rozvytok Ukrainy [Structural change and economic development of Ukraine], National Academy of Sciences of Ukraine, Kyiv.
Google Scholar

Hilbert, M., López, P. (2011), The World’s Technological Capacity to Store, “Communicate, and Compute Information, Science”, 332 (6025), pp. 60–65, https://doi.org/10.1126/science.1200970
Google Scholar DOI: https://doi.org/10.1126/science.1200970

Katz, R.L. (2017), Social and economic impact of digital transformation on the economy, https://www.itu.int/en/ITU-D/Conferences/GSR/Documents/GSR2017/Soc_Eco_impact_Digital_transformation_finalGSR.pdf (accessed: 20.04.2021).
Google Scholar

Kramarev, H. (2017), Naukovo‑metodychnyi pidkhid do modeliuvannia otsinky strukturnykh zrushen v promyslovosti krainy [Scientific and methodological approach to modelling the assessment of structural changes in the country’s industry], Research Center for Industrial Development Problems of the National Academy of Sciences of Ukraine, Kyiv.
Google Scholar

Krasil’nikov, O. (2005), Problemy strukturnykh preobrazovanii v ekonomike [Problems of Structural Changes in the Economy], “Ekonomist”, 8, pp. 52–58.
Google Scholar

Measuring the Information Society Report (2017), https://www.itu.int/en/ITU-D/Statistics/Documents/publications/misr2017/MISR2017_Volume1.pdf (accessed: 4.12.2020).
Google Scholar

Meyn, S., Tweedie, R. (2005), Markov Chains and Stochastic Stability, http://probability.ca/MT/BOOK.pdf (accessed: 1.06.2019).
Google Scholar

National Bureau of Statistics of China (2019), China Statistical Yearbook, http://www.stats.gov.cn/tjsj/ndsj/2019/indexeh.htm (accessed: 1.01.2022).
Google Scholar

National Statistical Committee of the Republic of Belarus (2019), https://www.belstat.gov.by/en/ofitsialnaya-statistika/real-sector-of-the-economy/national-accounts/annual-data/ (accessed: 1.01.2022).
Google Scholar

National Statistics Office of Georgia (2020), Statistical Yearbook of Georgia, National Statistics Office of Georgia, Tbilisi.
Google Scholar

OECD (2019), Measuring the Digital Transformation – A Roadmap for the Future, OECD Publishing, Paris.
Google Scholar

OECD Statistics (n.d.), https://stats.oecd.org/ (accessed: 4.12.2020).
Google Scholar

Pohl, J., Santarius, T. (2020), Digitalization and energy consumption, “Ecological Economics”, 176, https://doi.org/10.1016/j.ecolecon.2020.106760
Google Scholar

Schwab, K. (2016), The Fourth industrial revolution: translated from English, “E” Publishing House, Moscow.
Google Scholar

State Statistics Service of Ukraine (2019), Gross domestic product by production method and gross value added by type of economic activity at current prices, http://www.ukrstat.gov.ua/ (accessed: 1.01.2022).
Google Scholar

Steffen, L., Pohl, J., Santarius, T. (2020), Digitalization and energy consumption. Does ICT reduce energy demand?, “Ecological Economics”, 176, https://doi.org/10.1016/j.ecolecon.2020.106760
Google Scholar DOI: https://doi.org/10.1016/j.ecolecon.2020.106760

Suslov, V. (2019), Rossiya v zerkale mejdunarodnyih reytingov [Russia in the mirror of international ratings], Information and reference edition, IEIE SO RAS, Parallel, Novosibirsk.
Google Scholar

Valz’s, P.D., Thompson, M.E. (1994), Exact Inference for Kendall’s S and Spearman’s ρ with Extension to Fisher’s Exact Test in r × c Contingency Tables, “Journal of Computational and Graphical Statistics”, 3 (4), pp. 459–472, https://doi.org/10.1080/10618600.1994.10474658
Google Scholar DOI: https://doi.org/10.1080/10618600.1994.10474658