Digitalization of economies of low and middle income countries in the context of digital transformation

Abstract

The article aims to quantify the relationship of the introduction of digital technologies on innovation, structural transformation of low- and middle-income economies through the correlation analysis of indicators of technological development (productivity of sectors) and structural transformation of Uzbekistan and Ukraine ( share of value-added and employment of sectors of the economy) for 1991-2019 to assess the relationship between technology and structural shifts through the channels of value-added and employment. It is revealed that Ukraine and Uzbekistan have undergone structural transformations of the economy in favor of the service sector, while the agricultural and industrial sectors produce less and less. If Uzbekistan remains the industrial-agrarian country with an aggregate share of the added value of these sectors 59% in 2019, Ukraine transits to the post-industrial type of economy where the added value of the service sector in GDP grows (55% compared to agrarian and industrial sectors at 42%).