Economic Growth and Development Models in the Context of Technological Advancements and Globalisation

Abstract

The paper dwells on the dynamism of models of economic growth and development following the high-paced technological advancement and globalisation. It addresses the weakness of the classical theories of growth with regard to the multidimensional and dynamic nature of contemporary economies that are being reshaped by the digital transformation, the spread of innovation, and global economisation. The four research questions inform the paper as it explores the effects of technological advances, globalisation implications, variables of institutional and human capital and the problem of digital inequality. The research is qualitative and analytical in nature and entails a thorough review of the academic literature, policy reports, and theoretical views that border on endogenous growth, innovation-driven development, and global value chains. The paper examines the relationships between technology adoption and openness to trade and structural economic change in the absence of modelling using econometric analysis, using a conceptual synthesis. The results indicate that an increase in the levels of technological preparedness and globalisation leads to increased productivity, competitiveness and sustainable growth in the economies. However, the gains of these processes are not distributed equally, which leads to the increasing polarisation of the developed and developing economies due to the type of institutions and the degree of human capital and digital infrastructure. The paper also suggests the relevance of the role of institutional arrangements and dynamic policy environments in either predetermining the growth outcomes. The paper concludes that the contemporary paradigms of development must change to more accommodative and open systems that embrace the digital transformation, global interdependence and institutional flexibility. Policy implications show that there is a necessity to invest in digital infrastructure, development of skills, innovation ecosystem