THE PARADIGM OF DIGITALIZATION AND THE DIGITAL ECONOMY

Abstract

The digital transformation of the modern economy is considered a significant trend conditioned by the newly formed characteristic features of the entire economic system. Since the first half of the 21st century, the digital economy has become an important trend in the development of the global economy. As a determining factor, digitalization has a tangible impact on the development of any socio-economic system in the 21st century.
The acceleration of digitalization processes is primarily driven by the capacity of modern technologies to significantly enhance the efficiency of activities carried out by various actors (both individuals and legal entities), economic sectors, and the economy as a whole. Consequently, the development parameters of the national economy, as well as the overall standard of living, undergo qualitative changes. The technological leap of human society, which ensures increased productivity, creates new opportunities while simultaneously generating new risks. The digital economy opens new opportunities for businesses to access markets, thereby influencing the competitiveness of each economic sector.