Digital Transformation is Driving the Economy Towards Sustainable Economic Growth

Abstract

Digital transformation impacts every industry by adding significant value along entire supply chains. It is affecting them with different degrees and speeds. The use of digital technologies in production chains increases the ease of interaction in supply and distribution. In most developing countries, most of the economic sectors and industries still use traditional tools and methods in their supply chain, especially for producing and marketing their products. For this reason, they are suffering from a decrease in sales volume.  This pushes employees to not advance in their career in these industries because they can't earn enough money to cover their main daily needs for life. Furthermore, the adverse effects of environmentally unsustainable consumption and production patterns are becoming unmanageable. It is therefore necessary to explore a meaningful improvement in resource performance in the world economy. To fill these gaps, there is a need to exploit the Digital Revolution and its contribution to sustainable economic growth, and to manage the natural resources consumed and produced by these industries. This paper conducts a conceptual literature review and uses Documentary methodology focusing on the analysis of how digital transformation improves the economy, and how it contributes to sustainable economic growth. In order to achieve sustainable economic growth, as a result, it is essential to leverage technological innovations. This study provides insights into how Industry 4.0, Circular Economy, and Digitalization can facilitate this process.

 

Keywords: Circular Economy (CE), Digital Economy (DE), Industry 4.0, Digital Revolution, Economy

JEL classification: H12.

Paper type: Theoretical Research.