Modelling Digital Economy Implications on Long-Run Economic Development

Abstract

This chapter develops frameworks and models to examine digital transformation into digital economies via digital technologies’ applications at both the macro and micro levels via both positive and negative externalities generated by digital technologies and pollutant emissions. A productivity mixed method approach has been developed based on the chapter modified frameworks and models to be employed at both the macro and micro levels to utilise the digital technology applications that will help in transforming digital economies to sustain their economic development. The study provided digital economy frameworks and policies to help in implementing digital transformation and to develop and use the new technologies needed for sustainable economic growth through technological progress, human capital skills development and environmental protection via green productivity technological progress. The study contributes to the knowledge body via proposed productivity mixed method frameworks and models that examine digitisation processes. The aggregate economies, industries, companies and other businesses will be provided with frameworks and guidelines to implement digital technologies’ applications that will help them to be transformed into digital sustainable economies. The most significant contribution of this study is treating digital technology cybersecurity negative externalities spill over effects similar to their negative externalities of pollutants’ emissions counterparts, besides developing capital productivity framework and model that were ignored in most of the studies.