The effect of digitalism on the economic growth and foreign trade of creative, Information and Communication Technology (ICT) and high-tech products in OECD countries

Abstract

The use of digital technologies has come to the fore in every aspect of life due to closures, social distance and bans during the pandemic period. Today, digital technologies are used in many sectors and their importance is increasing day by day. While digitalism refers to the increased use and integration of digital technologies, ICT appears to have a profound effect on economic growth and foreign trade in the creative and high-tech industries. In 2022, it is seen that 5.3 billion people, which corresponds to 66.3 percent of the world's total population, have access to the internet. Active mobile-broadband subscriptions has reached 86.9 percent in 2022 in the world. Exports in ICT goods were 2.77 trillion USD and ICT services were 848.4 billion USD in 2021. The share of ICT goods as percentage of total trade in the world was 13.2 percent whereas it was 7 percent in OECD countries. Share of ICT services as percentage of total trade in the world was 14 percent whereas it was 13.3 percent in OECD. The study aims to investigate the relationship between the export performance in “Creative”, “ICT” and “High-tech” products with their digital infrastructure and economic growth in OECD countries. The results show that there is a positive correlation between overall index scores and GDP per capita in OECD countries. “The share of ITC employment in total employment” and “the share of information and communication (ISIC rev4) in GDP” have a high positive correlation coefficient as 0.693 so that the correlation is significant even at the 0.01 level (2-tailed). “GDP growth rate” and “GDP growth in information and communication (ISIC rev4)” ” have a high positive correlation coefficient as 0.585 so that the correlation is significant even at the 0.01 level (2-tailed). “High-tech export share in total merchandise export” and “share of ICT goods as percentage of total trade, annual” have a high positive correlation coefficient as 0.656 so that the correlation is significant even at the 0.01 level (2-tailed). “The share of ITC employment in total employment” and “share of ICT services as percentage of total trade, annual” have a high positive correlation coefficient as 0.501 so that the correlation is significant even at the 0.01 level (2-tailed).