Contributions of the shadow economy and gig economy to entrepreneurship and business development in emerging economies: a systematic review

Labor economics, a cornerstone of modern economic research, examines the dynamics of labor markets, including supply and demand, wage determination, and employment levels. In the digital era, this field has gained unprecedented importance as technological advancements reshape traditional labor models. Digital transformation enhances productivity and operational efficiency but also disrupts employment structures, skill requirements, and wage distribution across industries. The digital economy presents both opportunities and challenges. While it can boost wages and reduce income inequality through productivity gains, it also demands new skills and flexible employment models, potentially leading to structural labor market shifts. Automation and artificial intelligence (AI) are displacing low-skilled workers in sectors like manufacturing and retail while creating opportunities in high-skilled areas such as data analysis, software development, and digital marketing. This shift underscores the need for continuous upskilling and investments in human capital. Remote work and the gig economy have emerged as dominant trends, accelerated by the COVID-19 pandemic. By 2025, an estimated 22% of the U.S. workforce will work remotely, with hybrid models becoming the norm. The gig economy, encompassing freelancing and contract work, is also expanding, with 36% of U.S. workers participating in 2024. While these trends offer flexibility, they also raise concerns about job stability, social protection, and work-life balance. Trade unions face new challenges in adapting to the digital economy. The rise of automation and gig work complicates traditional unionization efforts, but unions are leveraging digital tools to organize workers, advocate for data rights, and promote fair labor practices. Initiatives like digital skills training and tailored benefits for gig workers are helping unions remain relevant in a rapidly changing labor landscape. Income inequality remains a pressing issue, as the digital economy disproportionately benefits high-skilled workers and platform owners. Bridging the digital divide and ensuring equitable access to technology and education are critical for reducing disparities. Policymakers must implement redistributive fiscal policies, support small and medium-sized enterprises, and invest in digital infrastructure to promote inclusive growth. In conclusion, the digital economy is reshaping labor markets, creating both opportunities and challenges. Addressing these changes requires a comprehensive approach, including investments in education, social protection, and digital infrastructure. By fostering adaptability and inclusivity, stakeholders can navigate the complexities of the digital era and ensure sustainable economic growth.

Over the past decade many developments have taken place in the field of automation of cars, trucks and public transport. The penetration rate of Level 2 partially automated vehicles in mixed traffic is increasing, Level 3 conditional automation is now supported by legislation, and different experimental and commercial applications of Level 4 high automation in mixed traffic exist. This shows that automated driving developments should be considered when making decisions about investments in physical and digital infrastructure. However, there are still many uncertainties regarding future penetration rates, the level of connectivity, the operational design domain, and the expected impacts of automated driving. This paper proposes four scenarios for automated driving developments in the Netherlands in 2040 and 2060: 1) Late transition, 2) Automated vehicles on main roads, 3) Car-topia, and 4) Share-topia. To derive these scenarios, a new “switchboard” method is introduced in which multiple driving forces for automated driving can be varied. The main driving forces were identified based on expert surveys. For each scenario, a modelling approach is used to compute the impact of automated driving on vehicle kilometres driven and congestion. The switchboard method offered more flexibility than existing scenario methods. The model-based impact assessment provided more conservative and probably more accurate insights into the expected impacts of automated driving on vehicle kilometres driven and congestion than expert estimates from the literature. The results show that in all scenarios automation leads to an increase in the number of trips, vehicle kilometres driven and congestion. In the scenarios with autonomous vehicles, congestion is expected to increase up to 17%. The higher the penetration rates of connected automated vehicles, the smaller the increase in congestion (1.5% -11%). The results indicate that investments in digital infrastructure are needed to prevent capacity reduction due to autonomous driving. The scenarios “car-topia” and “share-topia” may require additional physical infrastructure on motorways and regional roads.

The rapid growth of the gig economy and digital platforms is challenging traditional gender roles, particularly in developing countries where structural inequalities continue to shape labor and household dynamics. Despite growing global interest in gender equity and digital inclusion, limited research has examined how gig work, digital access, and women’s income contributions interact to influence household gender dynamics within culturally conservative contexts. This study aimed to investigate the multidimensional impacts of women’s participation in gig work on time use redistribution, intra-household decision making, gender ideology, and role reversal within households in Pakistan. Using a cross-sectional survey design, data were collected from a representative sample of married couples engaged in the gig economy across urban and peri-urban areas of Pakistan. A quantitative analysis was conducted employing a combination of an analysis of variance, ordinal logistic regression, hierarchical multiple regression, and structural equation modeling to evaluate the direct and indirect relationships between constructs. The findings revealed that women’s gig work participation significantly predicted enhanced digital access, greater income contributions, and increased intra-household decision-making power. These, in turn, contributed to a measurable shift in gender ideology toward equality norms and a partial reversal of traditional gender roles, particularly in household labor division. The study concludes that the intersection of economic participation and digital empowerment serves as a catalyst for progressive gender restructuring within households. Policy implications include the need for gender-responsive labor policies, investment in digital infrastructure, and targeted interventions to support empowering women in non-traditional work roles.

The study was aimed at analysing the theoretical and methodological foundations and practical approaches to the formation and improvement of the economic mechanism of e-commerce enterprises’ activities. The methodological basis comprised systemic-structural and comparative approaches to examining the economic mechanism of the functioning of e-commerce enterprises in the context of the digital economy. The economic mechanism was considered as a set of interrelated elements – resources, costs, profit, and managerial decisions – that form an integrated digital ecosystem of the enterprise. In 2024, the share of online sales in the structure of Ukraine’s retail turnover increased to 3.1% (UAH 48.1 billion) compared with 2.1% (UAH 18.3 billion) in 2020, which confirms the consistent digitalisation of the consumer market even under crisis conditions. An analysis of key e-commerce players revealed different development trajectories. During 2020-2024, Rozetka increased its revenue from UAH 17.6 billion to UAH 29.7 billion, however, net profit remained volatile (from UAH 111 million in 2020 to UAH 16.3 million in 2024), which is explained by active investments in logistics and digital infrastructure. Prom demonstrated stable growth: revenue increased from UAH 924.5 million to UAH 2,052.2 million, and profit in 2024 reached UAH 269.2 million, indicating effective cost optimisation and the implementation of innovative solutions. The example of Amazon illustrated the global scale of digital technology integration: the company’s revenue grew from USD 386.1 billion in 2020 to USD 638 billion in 2024, and net profit, after temporary losses in 2022 (-USD 2.7 billion), recovered to USD 59.2 billion. It was determined that enterprises should more actively implement data analytics and machine-learning algorithms for demand forecasting and offer personalisation, automate business processes and logistics, as well as maintain a balanced financial structure and invest in digital infrastructure in order to enhance the effectiveness of managerial decision-making and ensure resilience and competitiveness. The practical significance of the study lies in the fact that the obtained results may be used by e-commerce enterprises to improve the economic mechanism through the integration of digital technologies, cost optimisation, and the enhancement of competitiveness in a dynamic market

This study investigates the variation in attitudes across stakeholders towards investments in the digital economy. Using semi-structured interviews to identify attitudes about the spatially evolving socioeconomic importance of the digital economy in New Zealand, we identified seven distinct yet partially overlapping concerns that prioritise preferences for digital investment. A key finding is that there are important asymmetries in stakeholders' narratives and epistemological foundations that currently align to collectively strengthen resolve to invest in digital infrastructure and training, but this alignment may splinter in future. Some stakeholders saw internet access as coalescing social economy, and there were concerns that some people and some places would get left behind if access is not rolled out uniformly and as a priority. There were disagreements about who will prosper, who will get left behind, who should pay for upgrading digital skills, the extent that investments were connected with wellbeing and identity, whether fake news was significant, and the longevity of the impact of digital economy investments. This study contributes to theory by demonstrating that practically-relevant, socially-informed policy decisions can be underpinned by collective efforts that draw on heterogeneous narratives and multidimensional understandings.

With the rapid development of the Internet and digital technology, digital infrastructure has become an important part of urban infrastructure. Many cities are enacting smart policies to promote the development of digital technology infrastructure. However, what are their mechanisms? There is currently a shortage of literature on the subject. This paper tried to solve this problem and used China as an example. Using panel data from cities in China, this paper used the spatial multiple-period difference-in-difference (SDID) method to investigate the impact of smart city policy (SCP) on digital infrastructure. First, we found that SCP significantly promotes the construction of digital infrastructure, with strong positive spatial spillover effects. This result remained valid after a series of rigorous robustness tests. Second, we discovered that the indirect effects of policy implementation outweigh the direct effects. Furthermore, smart city development enhances local government investment in digital infrastructure, attracts more high-tech enterprises, and consequently drives improvements in urban digital infrastructure levels. Lastly, we observed that the effectiveness of smart city policies is stronger in cities with good fiscal conditions, strong economic development, and a thriving digital economy. This research will not only enrich research on smart cities but also provide policy recommendations for strengthening digital infrastructure.

The research is about the role of state regulation in development of Ukraine’s IT sector, and about optimization strategies and policy recommendations. The study explains the problem of inconsistent regulatory impacts on the IT sector growth which is worsened by bureaucratic barriers, compliance costs and instability of policies. The research employs panel data drawn from 2020 to 2024 in order to determine the effect of tax incentives, financial assistance, compliance costs, regulatory quality, digital infrastructure and educational investment on IT sector growth and efficiency. The paper utilizes results from the fixed effects, random effects, and generalized method of moments econometric models and results are robust with respect to sensitivity analysis using diagnostic tests, to explore the link between state regulation and IT sector performance. This suggests that improved tax incentives and financial support creates better environment for IT sector growth, while reduced compliance costs and better quality of regulation helps achieve better operational efficiencies. Furthermore, investments in digital infrastructure as well as education enhance innovation and productivity. It is shown that the growth of the IT sector was influenced by moving tax incentives from 2,5 billion UAH in 2020 to 4,5 billion UAH in 2024, which led to an increase in the annual growth rate from 7,2% to 11,2%. Financial support also grew from 1,2 billion UAH up to 2,3 billion UAH, thus supporting the startup innovation and expansion. Moreover, lower compliance costs, decreased from 4,5% to 3,6%, increased operational efficiency, and the Regulation Quality Index rose from 3,2 to 4,3 and helped create a more business friendly environment. Further enabling innovation capacity and productivity was digital infrastructure and IT education simply growing from 0,8 billion UAH to 1,2 billion UAH. It also discusses how stable policy enables long term strategic planning from an investor’s perspective and how it builds investor confidence. Based on the implications of this research, policy recommendations are formulated on three evidence-based dimensions: optimizing tax incentives, increasing financial support, and reducing compliance costs; while on the other hand investing in digital infrastructure and IT education. The paper concludes that Ukraine's IT sector has a sustainable growth and global competitiveness, however, such a rate is possible provided there is a stable policy environment and strategic state regulations. This study also contributes to academic discourse on state regulation in digital economy through widening the scope of applied research and suggests further practical approaches for the industry stakeholders and state policy makers.

The development of digitalization, particularly through information systems, has led to a profound transformation of the tourism industry both in terms of operational practices and structural organization making digital infrastructure a key partner in the sector. This transformation has encouraged economic stakeholders to invest in digital infrastructure to enhance connectivity and improve access to digital services. The objective of this research is to assess the impact of digital infrastructure investment on tourism development in Cameroon. To achieve this, we applied the ARDL model using data over a 22-year period, from 2000 to 2021. Tourism development was measured through international tourist arrivals, while digital infrastructure investment was captured via private investment in digital technologies. Our findings highlight that both private investment in digital infrastructure and foreign direct investment (FDI) are significant and positive determinants of international tourist arrivals in Cameroon. However, the results also reveal a contrasting effect over time: while private digital investment has a significantly negative impact on tourist arrivals in the short term, its long-term effect is both positive and statistically significant. This implies that increased private sector investment in digitalization enhances access to digital tools among tourism actors, enabling them to better promote Cameroon’s image both nationally and internationally, and to tailor their offerings to the preferences and needs of visitors.

This chapter investigates the impact of digitalization on business development at global level. It focusses on establishing the relationship between various metrics of digitalization and revenue growth of the business sector. It uses secondary data that is taken from World Bank Reports on Trends and Progress 2024. Accordingly, it finalizes four crucial variables (digital adoption rate, mobile broadband subscription, e-commerce penetration, and investment in digital infrastructure) to achieve chapter's objectives. It transforms a business development metric at global level. This metric investigates the impact of digital adoption, integration of digital transformation and technological integration on revenue of the business sector at global level. It employs a simple linear regression model to examine the impact of the afore-mentioned independent variables on the revenue growth of the business sector. It develops a quantitative approach to obtain the magnitude and numeric impact of digitalization on business development.

Universities have been formed in the era of communication through the «printed text», and the digital revolution taking place in the world in the last decades creates new opportunities and challenges for them. Digital technologies form a fundamentally new basis for the production, storage and transmission of knowledge; they lead to a profound transformation of all types of communication, content and organization of thinking and activity. In order to manage higher education development in Russia, it is important to understand 1) which place digitalization has among development priorities of universities, 2) whether their strategies produce the leadership in production and use of modern digital technologies or there is a risk that universities will become outsiders in this field. The article presents the results of a large-scale expert survey (1481 experts from 65 universities) on the prospects and priorities of the development of universities in Russia. Key research questions are: 1) which place digitalization takes among other large-scale changes («trends») topical for the modern university; 2) which place «digital challenge» occupies among other challenges? 3) do the actual priorities of Russian universities management reflect the significance of the «digital challenge»? According to the survey, the «total digitalization» of the economy and society will be the key trend in the period until 2035. Consequently, the «digitalization challenge» (the need to move towards the large-scale use of digital technologies in education and university management) will be the most significant one for universities. The experts believe that investment in digital infrastructure should feature prominently in the system of development priorities and have quick impact. However, the survey shows a certain gap between the «due» (according to the experts) and the actual structure of the priorities for the development of Russian universities. The main trend of changes and the challenge for universities is «digitalization», while among the actual priorities of investment in development, «PR and promotion of the university», «cooperation with the Ministry of Education and Science and federal agencies» are at the first positions, and investment in digital infrastructure is only at the third position. Even lower is the actual priority of such important areas of investment as the motivation of teachers and students («investment in activity»); international cooperation; cooperation with business; educational technology of the new generation; attraction of «new students»; attraction of «new personnel»; starting the exploratory research; support for scientific schools. Among the various elements of higher education reform in Russia, the «digitization» of the educational process is viewed by experts as the most promising direction, which is already showing its effectiveness. The survey results show the need for amending the strategic priorities of Russian universities. While maintaining a high priority of investment in digital technologies, it is necessary to raise the priority of investment in human capital, i. e. in «new personnel» (leading scientists, practitioners with unique experience, talented young scientists and teachers, etc.), stimulating the initiative of teachers, staff and students and their involvement in development process.

A bibliometric study is performed on digital platforms in Africa, systematically mapping the principal contributors, prevailing thematic areas, and prospective avenues for future investigation. The analysis underscores the significant role played by South Africa, alongside a specific group of other English-speaking nations—including Nigeria, Kenya, Ghana, Ethiopia, Uganda, and Zimbabwe. Among the core topics most frequently addressed are the digital and gig economies, online learning environments, social media applications, digital health, and mental health—domains that continue to hold considerable relevance in light of accelerating advancements in artificial intelligence and machine learning. The continent’s combination of rapid demographic growth and substantial investments in digital infrastructure constitutes a uniquely favorable context for the proliferation of digital platforms. Moreover, the literature also identifies a range of peripheral yet noteworthy themes, such as mobile money, financial inclusion, innovation and entrepreneurship, agriculture, youth engagement, and sustainable development. Collectively, these insights contribute to a more comprehensive understanding of both the current state and the evolving trajectory of digital platform research across the African continent.

This study examines the impact of the COVID-19 pandemic on the digital transformation landscape in the Kingdom of Saudi Arabia. Its main goal is to find out to what extent the pandemic has spurred digital technology adoption. During the pandemic, Saudi Arabia has seen a rapid transition to digital solutions in various areas such as remote working, online education and e-commerce. And telemedicine. This study examines the factors that contribute to this transition and assesses its long-term consequences. A quantitative, inductive and explanatory study design was selected for this study to analyze primary data collected from 247 respondents working in official UK organisations, ministries and agencies. Saudi Arabia through a survey questionnaire page. Statistical analysis tools were used to evaluate the conclusions of the results. Key findings highlight the central role of government investments in digital infrastructure and highlight the challenges of digital literacy and data security. Ultimately, this study acknowledges that the pandemic has acted as a catalyst, reshaping traditional business models and service delivery. To build on this momentum, the recommendations call for sustainable investment in digital infrastructure, increasing digital literacy, and encouraging innovation through collaborative and responsive partnerships. Actively on network security issues.

Purpose This study evaluates the role of digital infrastructure and policy initiatives in Malaysia’s economic growth, focusing on the Digital Economy Performance Indicator (DEPI) from 2017 to 2021. Design/methodology/approach Through the implementation of national initiatives like the Digital Free Trade Zone (DFTZ) and the National Fiberisation and Connectivity Plan (NFCP), Malaysia has emphasized the importance of digital transformation for economic resilience and global competitiveness. The DEPI framework assesses key dimensions—connectivity, affordability, infrastructure, human capital, and digital technology integration—using the entropy weight coefficient method to ensure objectivity. Findings Findings suggest that while Malaysia has made notable progress in digital connectivity and infrastructure, challenges persist in affordability, especially in rural areas. The development of human capital, particularly digital literacy, also remains crucial for long-term sustainability. Practical implications The research concludes that further investment in digital infrastructure and skills development is essential for Malaysia to thrive in the global digital landscape. Originality/value This study offers insights for policymakers to address the digital divide and foster a more inclusive and competitive digital economy. Peer review The peer review history for this article is available at: https://publons.com/publon/10.1108/IJSE-10-2024-0826

In the context of the digital transformation of the economy, the development of digital infrastructure — a set of technological, organizational, and institutional components that ensure ubiquitous access to digital services, data, and platforms — is becoming a key driver of sustainable growth. This article examines the role of digital infrastructure as a system-forming factor in economic growth in modern national economies. A comparative analysis of the impact of broadband internet, data centers, cloud computing, and other elements of the digital environment on macroeconomic indicators in countries with varying levels of development was conducted. Using empirical data for 2015–2023, a model was constructed to illustrate the relationship between GDP growth rates and digital accessibility and infrastructure maturity indices. The study’s results confirm that investments in digital infrastructure have a sustained positive effect on labor productivity, digital entrepreneurship development, and institutional effectiveness. Particular attention is paid to institutional barriers and the asymmetry of digital development in regional and global contexts. Recommendations are proposed for developing a balanced digital infrastructure modernization policy as the foundation for sustainable and inclusive growth.

This study examines the impact of the COVID-19 pandemic on academic performance and student participation in the National High School Exam (ENEM) in the state of Pará, Brazil, focusing on the interaction between socioeconomic factors, access to technology, and regional disparities. The research employed a mixed-methods approach, analyzing quantitative data from ENEM results (2020-2022) and qualitative interviews with educators and students. The findings indicate that the pandemic exacerbated pre-existing educational inequalities, particularly affecting low-income students and those enrolled in public schools. The highest dropout rates were recorded among students with a family income of up to one minimum wage, highlighting the barriers posed by limited access to technology and infrastructure for remote learning. A statistical analysis revealed a 20% increase in scores among students with access to computers and the Internet, particularly in private schools. The study also found significant regional differences across Pará's mesoregions, with Marajó and Southeast Pará facing more persistent challenges in reducing dropout rates compared to the Metropolitan Region of Belém. These results underscore the urgent need for region-specific public policies that address disparities in educational resources, including targeted investments in digital infrastructure and teacher training for remote education. The study concludes that comprehensive support programs, including psychological assistance for students, are essential for building a more resilient and equitable educational system capable of withstanding future crises.