The impact of technological change on modern economy

Abstract

The paper examines the relationship between technology change, economic growth and economic development through structural analysis applied to macroeconomic variables, such as the increase in the value of GDP, the current trade balance and the formation of gross capital, giving an idea of the structural shift s in the economy associated with the use of digital technologies. The analysis is conducted on the example of 17 countries, which account for about 68% of the total value of world GDP. The results show a slight increase in world GDP refl ecting positive absorption of the above-mentioned technological changes. An analysis of the eff ectiveness of the formation of gross capital for each country as a result of changes in the value of GDP and its structure is presented. As a result, there is a gap between the results of the creation of value and the advantages of economic development that the country receives from possessing new technologies. The key conclusion of this study is that the amounts of value produced in the economy are infl uenced by technological changes resulting from implementation of innovations and their distribution in the country. The existence of a non-linear relationship between technological changes and economic growth is revealed.