The digital economy: the challenges of science and politics
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Date
2019
Authors
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Publisher
Ivane Javakhishvili Tbilisi State University Press
Abstract
What should economic policy makers consider in process of developing economic
strategies to tackle the challenges of the digital revolution and to take advantage of its
progressive outcomes, and what are the threats to technological development that will allow industry 4.0 to have a negative impact on economic policy? To answer these questions, we aimed to conduct a bibliographic study based on the of modern advanced scientific papers and to systematize the expectations and challenges of the economic development of the digital economy using induction and deduction methods. The results of the study will help us to foresee the future concept of economic policy. During the research process, we selected the most recent and highly rated scientific papers, identified the results of the research using the induction method, and finally finalized the grouping of the results of the analyzed analyzes – systematization.
In the research process, we have studied the works of Kovaks (2018), Nguyen et al
(2019), Bosler and Holt (2012), Remeykenes, Gasparenier and Schneider (2018), Ukolov et al (2018), Baur, Hong and Lee (2017) and others, containing subjective assessments of the development of Digital Economics on Problems such as Digital Economics in relation to the economic growth, the theoretical economic model, productivity, the shadow economy, various institutional mechanisms.
The work presents a bibliographic study of contemporary scientific papers on the
problems of digital economy. The systematization of the results of the analyzed scientific
literature shows the multitude of expected negative outcomes whose existence and origin
will require greater literacy from the modern citizen and government. The negative effects
are linked to a number of uncertainties, the expected decline in the employment of underaged people, the increase in stressful working conditions of managers, the unfair distribution of income, the growth of the digital shadow economy, cybercrime, the rise of ill-advised financial gain that will enhance financial sector and increase the value of speculative assets. The links between financial centers and political power will become even more important. As a result, economic policy regulation will be complicated.
From an economic point of view, digitizing the economy may require huge additional
costs, but ongoing operations reduce the costs of searching, multiplying, transporting,
tracking and verifying information. However, the emergence of digital money accelerates
turnover. It is cheaper, faster and more global in content than traditional cash. In order
to facilitate the formation of databases, it will be necessary to develop an information
production accounting methodology. In order to fi nd effective management tools for these
and other challenges, it is important to establish a new economic mindset on the basis of which a new economic model in the form of a digital economy should be explored. There
is a need to diversify research into issues such as expanding the database of cryptocurrency studies; Research on the legal, economic and regulatory issues of cryptocurrencies; Issues of information asymmetry; Theoretical development; Alternative Potential Benefits of Blockchain Consumption; Valuation of cryptocurrencies as an asset and as an individual; The issue of environmental change with regard to cryptocurrencies, etc. However, the authors pay great attention to the triad of problems: disorientation of regulation, price spikes and cybercrime.
Description
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Keywords
Digital economy, industry 4.0, economic policy
Citation
Economics and Business, №4, 2019, pp. 83-99