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Digitalization and Inclusive Growth: A Review of the Evidence

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dc.contributor.authorNayyar, Gaurav
dc.contributor.authorPleninger, Regina
dc.contributor.authorVorisek, Dana
dc.contributor.authorYu, Shu
dc.date.accessioned2024-10-15T13:46:31Z
dc.date.available2024-10-15T13:46:31Z
dc.date.issued2024-10-15
dc.description.abstractThis paper summarizes the evidence on the growth and distributional effects of digitalization through four channels: average productivity growth, employment and wages, access to markets, and government finances. First, digitalization has increased average productivity growth by better matching demand and supply, improving the efficiency of business processes, and boosting the accumulation of intangible capital. For developing economies, the productivity gains from “smart” automation and artificial intelligence that reduce labor costs may be lower than from the previous wave of information and communications technologies, which improved the matching of sellers to buyers by reducing search and coordination costs. Second, there is little evidence that use of information and communications technologies has reduced aggregate employment or resulted in job polarization in developing economies, unlike the experience of advanced economies. However, distributional challenges within countries might increase to the extent that “smart” robots and artificial intelligence need complementary skills. Third, digitalization has enhanced market access for rural households, small firms, and unbanked populations in developing economies through improving information flows. Fourth, digitalization has improved the efficiency of government spending on, and revenue mobilization for, public services and welfare programs through its effect on transparency, accountability, simplification of bureaucratic processes, and adoption of new delivery models.en
dc.identifierhttp://documents.worldbank.org/curated/en/099010010022412266/IDU1801d6a1a138fa1476619bf819382ed4cb0b7
dc.identifier.doi10.1596/1813-9450-10941
dc.identifier.urihttps://hdl.handle.net/10986/42243
dc.languageEnglish
dc.language.isoen_US
dc.publisherWashington, DC: World Bank
dc.relation.ispartofseriesPolicy Research Working Paper; 10941
dc.rightsCC BY 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttps://creativecommons.org/licenses/by/3.0/igo/
dc.subjectDIGITAL
dc.subjectTECHNOLOGY
dc.subjectECONOMIC GROWTH
dc.subjectJOBS
dc.subjectINEQUALITY
dc.subjectDEVELOPMENT
dc.subjectDECENT WORK AND ECONOMIC GROWTH
dc.subjectSDG 8
dc.subjectINDUSTRY, INNOVATION AND INFRASTRUCTURE
dc.subjectSDG 9
dc.titleDigitalization and Inclusive Growthen
dc.title.subtitleA Review of the Evidenceen
dc.typeWorking Paper
dspace.entity.typePublication
okr.associatedcontenthttps://reproducibility.worldbank.org/index.php/catalog/183 Link to data and reproducibility package
okr.crossref.titleDigitalization and Inclusive Growth: A Review of the Evidence
okr.date.disclosure2024-10-15
okr.date.lastmodified2024-10-02T00:00:00Zen
okr.doctypePolicy Research Working Paper
okr.doctypePublications & Research
okr.docurlhttp://documents.worldbank.org/curated/en/099010010022412266/IDU1801d6a1a138fa1476619bf819382ed4cb0b7
okr.guid099010010022412266
okr.identifier.docmidIDU-801d6a1a-38fa-4766-9bf8-9382ed4cb0b7
okr.identifier.doi10.1596/1813-9450-10941
okr.identifier.doihttps://doi.org/10.1596/1813-9450-10941
okr.identifier.externaldocumentum34398684
okr.identifier.internaldocumentum34398684
okr.identifier.reportWPS10941
okr.import.id5458
okr.importedtrueen
okr.language.supporteden
okr.pdfurlhttp://documents.worldbank.org/curated/en/099010010022412266/pdf/IDU1801d6a1a138fa1476619bf819382ed4cb0b7.pdfen
okr.region.geographicalWorld
okr.topicScience and Technology Development::Technology Innovation
okr.topicMacroeconomics and Economic Growth::Economic Development
okr.topicMacroeconomics and Economic Growth::Economic Growth
okr.topicSocial Protections and Labor::Employment and Unemployment
okr.unitProsperityChiefEcoAnalyticalTeam (EFIAT)
okr.unitPeople - Chief Economist Office (GGHCE)
relation.isAuthorOfPublication315dd6da-66d5-50cb-8bf2-7f07533caf21
relation.isAuthorOfPublication.latestForDiscovery315dd6da-66d5-50cb-8bf2-7f07533caf21
relation.isSeriesOfPublication26e071dc-b0bf-409c-b982-df2970295c87
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