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

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  • 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
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    References listed on IDEAS

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    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.

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    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

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