Digital economy in a global perspective: is there a digital divide?

Abstract

This paper aims at analysing the state of the Digital Economy by observing growth patterns of some Developmental Variables (GDP and GDP Per capita) and some digitisation variables. We have analysed with the help of growth models, correlation and Granger Causality amongst Developing, Developed and the World Economy during a period of recent 15 years.

There are five main findings. First, the existence of strong network economies between the broadband and the mobile technologies in developed world. Second, a general decline in fixed line services amongst all three-country grouping, which is not surprising. Third, economic growth variables and growth in mobile services are integrally linked. Fourth, there is bi-way causality between some growth variables and digitisation variables. Finally, there is evidence of a digital divide because digital economy at the global is dominated by developed economies, especially in E-commerce, which is a massive chunk of the global economy.

Keywords:

• Digital economy
• E-commerce
• ICT value-added and exports
• broadband
• fixed line and mobile services
• global digital divide

Correction Statement

This article has been republished with minor changes. These changes do not impact the academic content of the article.

Disclosure statement

No potential conflict of interest was reported by the author(s).

Notes

1 Unit Root Testing has been done on the level variables and they are found to be non-stationary - I(1). The differenced series are found to be stationary I(0). But we have not reported results for want of space and time.

2 These other dimensions are not being explored in the present study.

Additional information

Notes on contributors

K. V. Bhanu Murthy

Prof. K. V. Bhanu Murthy, is the Former Dean Faculty of Commerce and Business, Delhi School of Economics. University of Delhi, Delhi, India. Presently he is Special Appointee Professor at Delhi Thechnological University. Delhi, India. He is ranked at 99.2 percentilein SSRN.com, out of 5,42,000 social scientists in the world.

Anjala Kalsie

Dr. Anjala Kalsie is an Asst. Prof. at Faculty of Management Studies, University of Delhi, Delhi, India. Her area of specialization is International Finance and Accounting. She has many publications to her credit.

Rishika Shankar

Ms. Ms. Rishika Shankar is a Research Scholar at Faculty of Management Studies, University of Delhi, Delhi, India.