DIGITAL ECONOMY WITHIN THE EURASIAN ECONOMIC UNION: CURRENT STATE AND DEVELOPMENT PROSPECTS

Dinara B. KALYBEKOVA

Senior Lecturer at the Department of Finance and Accounting, University of International Business, Almaty, Republic of Kazakhstan

dinara-kalybekova@tanu.pro

Galiya N. SANSYZBAYEVA

Professor at the Department of Management, Al-Farabi Kazakh National University, Almaty, Republic of Kazakhstan

gn.sansyzbayeva@tanu.pro

Madina O. KOISHYBAEVA

Senior Lecturer at the Department of Management and Foundations of Law, Kazakh National Women’s Teacher Training University, Alma-Ata, Republic of Kazakhstan

madina.koishybaeva@uohk.com.cn

Tolkyn OSPANBEK

Senior Lecturer at the Department of Management and Foundations of Law, Kazakh National Women’s Teacher Training University, Alma-Ata, Republic of Kazakhstan

tospanbek@ust-hk.com.cn

Aitolkyn B. KULMAGANBETOVA

Senior Lecturer at the Department of Management and Foundations of Law, Kazakh National Women’s Teacher Training University, Alma-Ata, Republic of Kazakhstan

ai-kulmaganbetova@uohk.com.cn

Abstract

Theoretical ideas about the influence of growing information flows on the current socio-economic system can be found in the concepts of the post-industrial and information society. Changes in production processes, the reorientation of production with the development of material goods for the provision of services, the globalisation of the economy are noted by theorists of the digital community as more fundamental properties of the newest type of society, caused by informatisation. The digital era is defined by continuous streams of data containing information, knowledge, ideas, and innovation. Global digital transformation (digitalisation) has changed not only the economic, but also the social vision of the world. The rapid growth of high-tech production is a key development trend in the modern world industry. However, the situation in developing countries as well as in “countries with economies in transition” differs from that in developed countries. Accordingly, the purpose of the study is to analyse digital transformation in the socio-economic aspect of the countries of the Eurasian Economic Union. The readiness of the countries of the Eurasian Economic Union (EAEU) as a whole for the digital transformation of the economy and society. Within the framework of the study, the main theoretical approaches to understanding digitalisation and its main processes are identified, the opinion of various authors regarding the understanding of the category of digitalisation and digital transformation of the economy is presented. The trends of digital transformation of both the Eurasian Economic Union and in the context of the participating countries, the main prerequisites and main difficulties in this process are considered, the main problems are identified, and the main prospects are also considered. Prospects for further research are conditioned by the subsequent study of the trends in digital transformation of the EAEU countries, considering the differentiation of the EAEU countries by the level of industrial development, as well as by the degree of lagging behind the global transition trends. The study is of practical value within the framework of summarising data on the main directions of digital transformation development, as well as on the existing difficulties in the EAEU countries regarding this process.

Keywords: Industry 4.0, digitalisation, business structures, digital transformation, national economic systems.

JEL classification: F55, F63, R50 

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DOES TRADE OPENNESS AND FISCAL POLICY AFFECT INEQUALITY AND ECONOMIC GROWTH? A STUDY IN INDONESIA

Mohammad KHUSAINI

Dr. in Economics, Faculty of Economic and Business, Brawijaya University-INDONESIA

mohkhusaini@yahoo.com

Setyo TRI WAHYUDI

Ph.D in Economics, Faculty of Economic and Business, Brawijaya University-INDONESIA

Setyo81@gmail.com

Zamrud SISWA UTAMA

Master of Economics Student at Faculty of Economic and Business, Brawijaya University-INDONESIA

Abstract

This paper examines the impact of trade openness and Indonesia’s fiscal policy on income inequality and economic growth. The error correction model approach was used to analyze the effect during the period 1980 to 2015. The results show that trade openness can improve inequality but at the same time impede growth. The effect of fiscal policy on reducing inequality is only generated by tax collection but is temporary. Meanwhile, government spending on infrastructure and health proved to encourage growth. On the other hand, education sector spending and tax collection can actually hamper growth.

Keywords: Trade Openness, Inequality, Growth, Fiscal Policy

JEL classification: E62, F63, H50, O40
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