Digital globalization and its impact on the world economy
Digital globalization is a new form of globalization. It is causing significant changes in the way of conducting business across borders, without a flow of economic benefits, and in expanding the participation of all market players.
The growth of data collection (Big Data) and all the information related to digital globalization determines that future global economic, financial and social links increase through digital platforms. Covid-19 is causing a shock in the global economy, which is proving to be faster and more serious than the global financial crisis of 2008. If the current crisis is pushing towards a certain "deglobalization" at the same time, Covid-19 represents a challenge and a lever for digital globalization and the digital transformation of economies.
Digital globalization in the 21st century is essentially fueled by new digital technologies and is characterized by being accelerating and increasing the flow of data and information around the world. In the process of digitizing economies, global data flows are increasing and digital platforms allow more countries and smaller companies to participate.
As highlighted in the 2016 McKinsey Global Institute Report, cross-border data flows are also increasing (for example, cross-border bandwidth has grown 45 times since 2005 and the operationalization of the 5G network is now increasingly evident). Global data flows consist mainly of information, research, communications, transactions, videos, and intra-company traffic. And they alone support and allow virtually any other type of cross-border flow.