Effects Of Digitization

First of all, it is believed that the new economy began in the late 1990s; high technology and tools, such as the Internet, devices and powerful computers are increasingly began to penetrate the consumer and business market. The new economy is about the transformation from manufacturing economy to a service economy; it is the transition from heavy industry to new technology economy. The new economy has some driving forces as: the ideas, knowledge, services and higher skills. While manufacturing is still important and will always be a constant in the state, and the main source of economic and technology services for growth .Some changes are linked together to describe the new economy; 1) Globalization. 2) Information and communication

The digital technology has been adopted by the services and connected devices. It led to increase the speed of economic growth and facilitate the creation of several jobs; it also plays an important role in helping policy makers to stimulate economic growth and employment opportunities. The impact of digitization by country and by sector is disproportionately. Developed economies enjoy the benefits of economic growth, higher by a factor of nearly 25 percent, they tend to lag behind emerging economies in job creation a similar margin The main reason for the differing effects of digitization is the economic structures of developed and emerging economies. With the introduction of computers, the world has completely changed, using computers and software the business use information technology in different departments including human resources, manufacturing, security, finance. By using IT, business has the ability to view changes faster in the global markets. The digital technology is used in many domains in our life such as: education, marketing, healthcare, medicine, accounting, communication,

But digitization has advantages and disadvantages. From the advantages: save space, save cost, save time, save employments, security, multiple accesses. But from the disadvantages: legal issue, the initial cost is high (the infrastructure cost). Here is a question that has many points of view; does digitization drive to growth? Or does growth drives to digitization? In reality, digitization drives to growth. Digitization has an effect on the economic; 3 variables are used to evaluate: growth in per capita GDP, job creation and innovation.150 countries were analyzed using classical production function model, they found that increasing the digitization of 10 percentages points cause 0, 50 to 0, 62 % gains in per capita GDP, the digitization helps also the countries to transition to more progress stages, the digital economies realize 0.5 % increase in GDP per capita for every 10 percent increase in digitization, while advanced digital economies show a 0.62 % increase in GDP per capita for every 10 percent digitization increase, in addition, it has an important effect on job creation: an increase of 10% in digitization