Digitalization оf Geo-Economic Space: Trends, Challenges аnd Prospects оf Growth

Abstract

The purpose of the article is to study the features of modern trends in the digitization of the geo-economic space, as well as its challenges and prospects for the growth of the economy in the conditions of modern changes. The research methodology involved the use of general scientific methods (analysis, synthesis, specification, classification) and specific economic methods (systemic and structural studies, quantitative analysis). The scientific novelty of the obtained results lies in the establishment of the key trends of digitalization preserving the possibility of sustainable development in the conditions of modern geo-economic shifts cased by russian aggression. Conclusions. Digitization of the economy is a modern tool for the development of new competitive advantages in the country geo-economic positioning. The economic efficiency of digitalization lies in the balance between resource intensity and capital intensity of the industry on the one hand, as well as productivity (profitability) on the other hand and is characterized by an exponential decrease in cost with a combination of available cloud services. As a result of the study, the main trends in the development of digitization in the global dimension were systematized: IT sector deepening (established on the basis of an analysis of the dynamics of global expenditures on the IT sector and expenditures on powerful data centers, as a result of which an additional increase in world GDP by 13 trillion dollars is expected by 2030); the dominance of the service sector and the financial sector in terms of the sectoral spread of digitalization in the world (established on the basis of a comparative analysis by economic sector). Empirical analysis of the structure of the spread of digitalization by the branches of the economy of Ukraine revealed that it is characterized by a service direction in the form of remote access digital services (predominantly state services, electronic payments, retail trade, etc.). The promising areas of development of digitization in Ukraine are determined: industrial infrastructure (in the form of automation and robotics due to significant destruction due to Russia’s military attack), the financial sector (especially the capital market and the banking sector due to low involvement and isolation from the global financial market). Key words: digitalization of the economy, geoeconomic space, world economy, IT sector, e-commerce.