Digital economy in a global perspective: is there a digital divide?

Abstract

This paper aims at analysing the state of the Digital Economy by observing growth patterns of some Developmental Variables (GDP and GDP Per capita) and some digitisation variables. We have analysed with the help of growth models, correlation and Granger Causality amongst Developing, Developed and the World Economy during a period of recent 15 years.There are five main findings. First, the existence of strong network economies between the broadband and the mobile technologies in developed world. Second, a general decline in fixed line services amongst all three-country grouping, which is not surprising. Third, economic growth variables and growth in mobile services are integrally linked. Fourth, there is bi-way causality between some growth variables and digitisation variables. Finally, there is evidence of a digital divide because digital economy at the global is dominated by developed economies, especially in E-commerce, which is a massive chunk of the global economy.