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Digitization: Its Impact on Economic Development & Trade

Author

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  • Moinak Maiti
  • Parthajit Kayal

Abstract

This study discusses the impact of digitisation on India’s two most vibrant and high potential segments for future growth: services sector and MSME segments. We find that there is a significant rise in growth rate for the India’s services sector and MSME segment since 2000. This was majorly due to digitisation. Digitisation automates the product and process as a result of which both quality and production increases. Despite having a high potential for future growth, India’s MSMEs segment has suffered due to less ‘access to finance’. Digitisation improves the performances of MSMEs and helps in reducing financial obstacles by providing alternative financing options to MSME. Increasing access to alternative finance has resulted in the significant rise in MSMEs operating performance, profitability and productivity. The high performance of the India’s services sector and MSME segment contribute significantly to the overall trade growth. This paper finds that there is a high impact of digitisation on the inclusive growth of the overall Indian economy and trade.

Suggested Citation

  • Moinak Maiti & Parthajit Kayal, 2017. "Digitization: Its Impact on Economic Development & Trade," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 7(6), pages 541-549.
    • Handle: RePEc:asi:aeafrj:v:7:y:2017:i:6:p:541-549:id:1575
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    Citations

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    Cited by:

    1. George, Ann K. & Kayal, Parthajit & Maiti, Moinak, 2023. "Nexus of Corporate Social Responsibility Expenditure (CSR) and financial performance: Indian banks," The Quarterly Review of Economics and Finance, Elsevier, vol. 90(C), pages 190-200.
    2. Jianhong Zhang & Désirée Gorp & Henk Kievit, 2023. "Digital technology and national entrepreneurship: An ecosystem perspective," The Journal of Technology Transfer, Springer, vol. 48(3), pages 1077-1105, June.
    3. Bakhsh, Satar & Zhang, Wei & Ali, Kishwar & Anas, Muhammad, 2024. "Transition towards environmental sustainability through financial inclusion, and digitalization in China: Evidence from novel quantile-on-quantile regression and wavelet coherence approach," Technological Forecasting and Social Change, Elsevier, vol. 198(C).
    4. Hung, Ngo Thai, 2023. "Green investment, financial development, digitalization and economic sustainability in Vietnam: Evidence from a quantile-on-quantile regression and wavelet coherence," Technological Forecasting and Social Change, Elsevier, vol. 186(PB).
    5. Kayenaat Bahl & Ravi Kiran & Anupam Sharma, 2022. "Impact of Drivers of Change (Digitalization, Demonetization, and Consolidation of Banks) With Mediating Role of Nature of Training and Job Enrichment on the Banking Performance," SAGE Open, , vol. 12(2), pages 21582440221, May.
    6. M. Mahdi Moeini Gharagozloo & Fatemeh Askarzadeh & Ali Moeini Gharagozloo, 2022. "More power for international entrepreneurs: the effect of digital readiness of economies on channeling national R&D resources to entrepreneurship," Journal of International Entrepreneurship, Springer, vol. 20(3), pages 474-502, September.
    7. Zhen Feng & Sainan Cheng & Guohua Qu & Yunlong Cui & Jiameng Ye, 2022. "Research on Theoretical Mechanism and Promotion Path of Digital Economy Driving China’s Green Development under “Double Carbon” Background," IJERPH, MDPI, vol. 20(1), pages 1-27, December.
    8. Olena Arefieva & Zarina Poberezhna & Svitlana Petrovska & Serhii Arefiev & Yuriy Kopcha, 2024. "Devising approaches to modeling enterprise business processes under conditions of modern digital technologies," Eastern-European Journal of Enterprise Technologies, PC TECHNOLOGY CENTER, vol. 1(13 (127)), pages 69-79, February.
    9. Huang, Lihua, 2024. "Fintech inclusion in natural resource utilization, trade openness, resource productivity, recycling and minimizing waste generation: Does technology really drive economies toward green growth?," Resources Policy, Elsevier, vol. 90(C).
    10. Huo, Da & Zhang, Xiaotao & Hu, Chao & Tang, Aidi & Chen, Yongchuan & Chen, Fang & Chen, Zhanming & Xu, Weiyin, 2023. "Spatial externality of journalism on carbon efficiency: A quasi-natural experiment based on interplay of journalism-based professionally generated content and digital economy," Economic Analysis and Policy, Elsevier, vol. 80(C), pages 1326-1336.

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