Preconditions for the transition of developed and developing countries to the cyber economy through the process of digital modernization

Abstract

The development of the cyber economy is becoming a guarantor for the national competitiveness of countries. However, many developing and emerging economies do not possess the corresponding preconditions for its formation. The purpose of this chapter is to describe the necessary conditions for the transition of developed and developing countries to the cyber economy and to determine factors that assist or hinder the development of this process. Economic and mathematical analysis is used in conjunction with data from global rating surveys that characterize the development of the cyber economy to determine interconnections with a range of macroeconomic indicators. The results of the mathematical calculations indicate that, on the one hand, development of the cyber economy is predetermined by the high level of a countries’ well-being, and, on the other hand, stimulates an increase in the effectiveness of business processes in the country’s economy on the whole.