The Impact of Digital Transformation in the Economy on Economic Growth and Foreign Trade
Chapter from the book:
Şahin,
M.
&
Önder,
K.
(eds.)
2026.
Theoretical and Empirical Research in Economics and Public Finance.
Synopsis
Digital transformation in the economy refers to the widespread adoption of digital technologies such as artificial intelligence, cloud computing, big data, and e-commerce platforms in manufacturing, finance, trade, and public services. This process supports economic growth through increased efficiency, reduced costs, and enhanced innovation capacity. Digitalization enables companies to access larger markets at lower costs, benefit from economies of scale, and increase their competitive strength. In terms of growth, digital transformation increases total factor productivity, transforms human capital, and enables the emergence of new sectors. Investments in information and communication technologies, in particular, have become one of the key determinants of long-term sustainable growth. The impact of digital transformation on foreign trade is mainly reflected in the facilitation and diversification of trade. E-export enables companies to access international markets faster and at lower costs thanks to digital platforms and logistics technologies. Digitalization also increases trade in services and strengthens integration into global value chains. The rapid development of information and communication technologies in recent years has led to many activities taking place in the digital environment. The transition to the digital economy has accelerated, particularly during the Covid-19 global pandemic, contributing to economic growth and the development of foreign trade. Economic models used to date have had to adapt to the development of digital technologies in many areas, from production to consumption, from the service sector to public administration. Digital transformation is a strategic factor that positively affects economic growth and foreign trade performance. However, for this effect to be sustainable, infrastructure investments, education policies, and the regulatory framework must be strengthened. In this sense, the concept of the Digital Economy has been a topic of intense interest and study in the academic world in recent years. In this context, the aim of this study is to examine the journey of the digital economy from the past to the present and to reveal its effects on economic growth and foreign trade.
