Transformations  in
Business & Economics

IT PRODUCTS, E-COMMERCE, AND GROWTH: ANALYSIS OF LINKS IN EMERGING MARKET
Iryna Roshchyk, Olena Oliinyk, Halyna Mishchuk, Yuriy Bilan

ABSTRACT. Using statistical data for 2010-2020, the paper analyses the emerging market of IT products in order to look into the opportunities for e-business development and Ukraine's economic growth. We propose a novel use of analytical characteristics and form groups of activities accordingly, as follows: the market capacity of IT products; cost and productivity of the workplace at the IT-sphere; productivity/cost ratio. The size of the economy and end-user's ability to purchase such products determine the IT products' market capacity. The paper finds that the IT products market's productivity/cost ratio is over two times higher than for the average enterprise. We finally elaborate a GDP per capita model based on the capacity of the IT products market: the development of the market for IT products leads to economic growth. The model helps understand the IT-sphere's attractiveness for investment and how the state can support IT-products' market development and use appropriate regulatory measures .

KEYWORDS:  e-business; IT products market; economic growth; e-commerce turnover; GDP per capita; correlation-regression analysis.

JEL classification:  M15, O32, O47.