If we observe the world economies, we will notice that over the last few decades, there has been a drastic transformation as countries strive for economies driven by technology. To compete efficiently on the global stage, countries have innovated and maximized the use of technology to boost its economy. One very important aspect of technology is that it bridges the gap between countries and citizens through technology-based products and commercial products.
Technology-based economic development has indeed become a means through which a nation’s economy can thrive. Technology has been proven to represent a positive force that enhances human capabilities and expands resources. The use of technologically advanced tools by different countries has not only seen them invent the latest high-tech tools, but it has also led to the implementation of new ways of doing things, and also in the development of tools that aid in economic development.
Industrialized nations have been significant in the interaction system because these countries have transitioned from being based solely on Agriculture or extraction of raw materials, to being based on the production of manufactured goods through advanced technological equipment. Over the years, these countries have maintained a constant and significant economy at a very first pace. Looking at the impact of technology in the world today, it is widely accepted that technology is a key driver of a country’s economic growth.
Its implementation and use of it allow for more efficient production, and an easier way of doing things, which is what a country needs to boost its economic growth. In the labor market, technology is having profound effects courtesy of automation and digital advances where labor demands are shifted from routine low middle-level skills to higher-level and more sophisticated, analytical, technical, and managerial skills. In emerging economies, manufacturing-led growth has been the dominant driver, due to their comparative advantage.
Labor-intensive production, such an advantage has eroded the automation of low-skill work which has created the need to develop alternative pathways to economic growth aligned with technological change. According to research, studies have examined the contribution of individual use of ICT on economic growth. It was discovered that for every one percentage point increase in internet access, economic growth increased by 0.224 percent.
Social media is another application of individual ICT usage, which many firms now use for meeting the needs of consumers as well as building industry networks. It has been disclosed that there is a relationship between social media and economic growth. For instance, in developing countries, social media has become an indirect factor of growth, with new businesses created through social media platforms.
Most countries are beginning to adopt the use of technology in almost all of their sectors because they have discovered that a country that spends on the implementation of new technologies will grow faster than another country that is accumulating more capital but spending less on technological advancements.
Technology has been proven to be at the forefront in driving a nation’s economy. With so many start-ups springing up in Nigeria, and also the establishment of ICT centers, I strongly believe that the country’s economy will skyrocket. According to reports, the information technology and telecommunications sector is currently the largest contribution to Nigeria’s Gross Domestic Product (GDP).