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Effects of digital transformation of the economy and quality of life in Russia

TERRA ECONOMICUS, , Vol. 18 (no. 3),

This paper deals with the process of digital transformation, its effects and their distribution in the regional aspect. The research is an attempt to define the influence of digital factors on the main indicator of people’s wealth (gross domestic product per capita) considering regional and temporal differences during the period from 2015 to 2018 in the regions of the Russian Federation. The digital component of people’s quality of life is defined based on the Russian regional index (digital index). To estimate the effects, panel data models were used to show the relationships between the parameters in space and time simultaneously for the period from 2015 to 2018. The econometric models surved as a tool for evaluating: 1) influence of the digital index on the real GRP per capita; 2) its influence on the real GRP per capita considering temporal and regional differences. To specify regional differences, digital inequality in the districts and subjects of the Russian Federation was considered. The research findings showed that the Russian regional index of digital component of people’s quality of life grew by 0.051 during the years 2015–2018. Regional factors strongly affect the impact of this index on real GRP per capita. The number of regions with negative corrected elasticity ratios (adjusted appropriately for differences in regions and period) decreased by 5. Variation ratio of the digital index decreased by 10.2%. Compared to the rest of the Russian federal districts, Ural and Northern Caucasus ones demonstrate higher digital inequality. In general, the positive impact of digitalization is identified for economically developed and rich regions of Russia, while for less developed regions, this impact could entail digital risks.
Citation: Litvintseva, G. P., Karelin, I. N. (2020). Effects of digital transformation of the economy and quality of life in Russia. Terra Economicus, 18(3), 53–71. DOI: 10.18522/20736606-2020-18-3-53-71
Acknowledgment: The study was funded by the Russian Foundation for Basic Research (RFBR) within the framework of the research project № 19-010-00195\20.

Keywords: digital economy; quality of life; regional effects; temporal effects; panel data model; regions of Russia

JEL codes: C33, O15, R12

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Publisher: Southern Federal University
Founder: Southern Federal University
ISSN: 2073-6606