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Digitalisation-‘The Invisible Hand’ of Digital economy

Author

Listed:
  • Edi-Cristian Dumitra

    (Bucharest University of Economic Studies, Bucharest, Romania)

  • Iulia Maria Gandea

    (Bucharest University of Economic Studies, Bucharest, Romania)

Abstract

This paper explores the way in which digitalisation might be considered the metaphor of ‘The Invisible Hand’ for the current economic environment, in which the paradigm of economics has been shifted towards a Digital economy and the transition has been accelerated by the crisis determined from the recent COVID-19 pandemic. Therefore, the mainstream of Classical economics has been replaced by digital activities based on the development of digital technologies, both as goods and services, production processes, and infrastructure. As a fast solution for recovering after the difficult period, many businesses have implemented digital technologies in their business models and strategies. Hence, the present paper collects information available from the scientific literature, creating a brief overview of digitalisation, the Digital economy, and the role of digitalisation in developing the Digital economy. Moreover, the metaphor is explained as digitalisation represents the driver for business development, achieving sustainable business strategies, implementing innovative business models for higher revenues, and reshaping the economic environment. The methodology used by the authors is the review of scientific literature relevant to the research, approaching the main ideas exposed, and exploring them for conclusions and further discussions.

Suggested Citation

  • Edi-Cristian Dumitra & Iulia Maria Gandea, 2022. "Digitalisation-‘The Invisible Hand’ of Digital economy," Journal of Financial Studies, Institute of Financial Studies, vol. 13(7), pages 51-62, November.
    • Handle: RePEc:fst:rfsisf:v:13:y:2022:i:7:p:51-62
    DOI: 10.55654/JFS.2022.7.13.04
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    References listed on IDEAS

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    1. N. V. Novikova & E. V. Strogonova, 2020. "Regional aspects of studying the digital economy in the system of economic growth drivers," Journal of New Economy, Ural State University of Economics, vol. 21(2), pages 76-93, July.
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    More about this item

    Keywords

    digitalisation; business development; digital economy; economic paradigm; digital technologies.;
    All these keywords.

    JEL classification:

    • D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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