DIGITAL DIVIDE IN THE INTERNATIONAL ECONOMY: CHALLENGES FOR DEVELOPING COUNTRIES

The digital divide in the international economy is one of the biggest obstacles for developing countries, which face difficulties in accessing the latest technologies and digital tools. This gap threatens to complicate the integration of such countries into the global economy and limits their opportunities for economic growth and development. The article estimates the scope of the digital divide in the international economy by monitoring the price of a mobile broadband data bundle. It reveals a significant difference in the levels of accessibility between highly developed countries and developing countries. For example, in such countries, where there is access to fixed broadband, its cost can be almost a third of the average per capita income. In the context of this study, the challenges facing developing countries in the process of integration into the global digital economy are identified: insufficient digital infrastructure, limited access to digital technologies, low level of digital skills, weak legal and regulatory framework, social and gender inequality, limited access to financing for startups and innovations, cybersecurity threats, dependence on foreign technologies and investments, economic instability and political risks, global competition and barriers in international markets. The factors causing inequality in access to information and communication technologies (economic, geographical, social, political, technological, international) are identified and characterized. The article outlines recommendations for overcoming the digital divide and stimulating economic development in the context of digital transformation: investments in infrastructure, educational initiatives, stimulating innovation (implementation of start-up support programs, facilitating access to venture capital and promoting the development of digital industries), international cooperation, ensuring cybersecurity, investments in scientific research and innovation (supporting the development of new technologies through scientific research and innovation hubs). The digital divide in the international economy is a significant problem for developing countries, as it complicates their integration into the global digital economy and limits opportunities for economic growth. With a comprehensive approach and cooperation at the international level, developing countries can overcome this gap and use the potential of digital transformation to stimulate economic development.

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Publication Details

Journal
Economic scope
Published
2025-04-14
DOI
https://doi.org/10.30838/ep.199.65-70
Citations
1
Primary Topic
ICT Impact and Policies
Type
article
Field-Weighted Citation Impact
1.14
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article

DIGITAL DIVIDE IN THE INTERNATIONAL ECONOMY: CHALLENGES FOR DEVELOPING COUNTRIES

Олена Баула, Pavlo Kravchuk
1 citations
Economic scope
ICT Impact and Policies
1.14
article

DIGITAL DIVIDE IN THE INTERNATIONAL ECONOMY: CHALLENGES FOR DEVELOPING COUNTRIES

Олена Баула, Pavlo Kravchuk
article en
1 citations

Abstract

The digital divide in the international economy is one of the biggest obstacles for developing countries, which face difficulties in accessing the latest technologies and digital tools. This gap threatens to complicate the integration of such countries into the global economy and limits their opportunities for economic growth and development. The article estimates the scope of the digital divide in the international economy by monitoring the price of a mobile broadband data bundle. It reveals a significant difference in the levels of accessibility between highly developed countries and developing countries. For example, in such countries, where there is access to fixed broadband, its cost can be almost a third of the average per capita income. In the context of this study, the challenges facing developing countries in the process of integration into the global digital economy are identified: insufficient digital infrastructure, limited access to digital technologies, low level of digital skills, weak legal and regulatory framework, social and gender inequality, limited access to financing for startups and innovations, cybersecurity threats, dependence on foreign technologies and investments, economic instability and political risks, global competition and barriers in international markets. The factors causing inequality in access to information and communication technologies (economic, geographical, social, political, technological, international) are identified and characterized. The article outlines recommendations for overcoming the digital divide and stimulating economic development in the context of digital transformation: investments in infrastructure, educational initiatives, stimulating innovation (implementation of start-up support programs, facilitating access to venture capital and promoting the development of digital industries), international cooperation, ensuring cybersecurity, investments in scientific research and innovation (supporting the development of new technologies through scientific research and innovation hubs). The digital divide in the international economy is a significant problem for developing countries, as it complicates their integration into the global digital economy and limits opportunities for economic growth. With a comprehensive approach and cooperation at the international level, developing countries can overcome this gap and use the potential of digital transformation to stimulate economic development.

Economic scope(199)
Openalex Percentile: Top 21%
ICT Impact and Policies
1.14
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