Digital transformation and the digital divide: their impact on economic development and ways to address them over the past five years

Abstract

Over the past five years (2020-2025), digital transformation has emerged as a key driver of global economic growth, innovation, and productivity. While the rapid integration of digital technologies has accelerated economic development in many parts of the world, it has also deepened the digital divide between and within countries. This divide—manifested in unequal access to the internet, digital infrastructure, skills, and opportunities—poses significant challenges to inclusive and sustainable development. This study explores the dual impact of digital transformation: its potential to improve economic performance and its role in exacerbating socioeconomic disparities. By analyzing emerging technologies such as artificial intelligence, blockchain, and the Internet of Things, the study aims to identify opportunities and threats in the digital age