Digitalization has helped to transform economies by enhancing competitiveness and productivity across a wide range of sectors. The adoption of digital solutions in the face of social distancing and lockdown measures introduced due to the coronavirus disease 2019 (COVID-19) pandemic has also been integral to the economic recovery process.
This book examines how digital transformation can enhance trade, financial inclusion and firm competitiveness, as well as how greater digital infrastructure investment, internet connectivity and financial and digital education in the region can maximize digitalization’s economic benefits. It also explains the importance of striking the right balance between the regulation and supervision of financial technology to enable innovation and safeguarding financial stability and consumer protection.
The first part seeks to build an understanding of digitalization’s effects on macroeconomic performance, including through trade channels and financial inclusion. It then examines automation and the impact advancements in digital technology can have on firms via technology spillovers and the labour market. Finally, it highlights onward policy challenges for achieving sustainable and inclusive economic development outcomes amid accelerating technological change and demand for a more digitalized economy.