THE EFFECT OF DIGITALIZATION ON MANUFACTURING SECTOR: COMPARISON OF DEVELOPED AND DEVELOPING COUNTRIES

Abstract

In this study, it is investigated that the effect of digitalization indicators on manufacturing sector, index of information and communication development, global compatitiveness and global innovation index variablesare used which is in the countries both is devoloping anddeveloped. The variable sanalyzed with using panel data analysis is taken from the period between 2007 and 2017. According to the results of panel cointegrationanalysis such a longrunrelation is found between the variables of the manufacturing production index, information and communication technology development index, global competitiveness and global innovation index. Inaddition it is reached that in developing and developed countries the solution ofunbalance situation sarefaced in short-run has beensolving in long-run. As a result of this study, in developing and developed countries it is proved that entering intorivarly with(entering in competation) in global market has a positive effect on manufacturing production in particular.