Impact of Technology On Economic Growth: The economy accepts that technology is the single factor that has made economic expansion possible. It boosts the organization’s ability to produce more goods and services more effectively. The new technology is routines and protocols that represent codified knowledge. Technology aids in gaining sufficient information about the optimal use of economic resources to generate goods and services. The development of technology has led to a rise in economic growth and greater efficiency. Technology has enhanced every aspect of business, from manufacturing to company profit.
Additionally, it has aided in the globalization of the company. The overall productivity of the company changes positively as a result of technological innovation. A positive shift will benefit the company’s productivity and bottom line. Technology advancement necessitates the use of less expensive inputs. Rapid expansion is possible with advanced technologies.
The development of diverse technologies is crucial for the prosperity of poor nations since it is the main driver of economic development. The social welfare of individuals and the expansion of market output are two other aspects of economic development. Both macroeconomic economic growth and business earnings at the micro level depend on technology development. When there is societal progress that is sustainable, social development can occur.
Businesses may provide and create goods or services rapidly while keeping a stable level of profit by using technology. It aids the company’s ability to generate more because to the variety of its goods and services. It has increased job specialization and worker division of labor, which entails selecting the most qualified person for the job in order to complete it swiftly and efficiently.
Additionally, it has made it easier for people to access and utilize natural resources, which is advantageous for both governments and the national economy. Inventions and innovation have a critical role in both the development of technology and the expansion of the economy.
It also claims that labor, capital, and technologies have promoted economic progress in terms of production. When all economic sectors see dramatic changes and the GNP and real per capita income are rising, the country is said to be in economic progress. It refers to economic expansion accompanied with structural adjustments.
Achievement Through Technologies:
1. The goal of increasing production.
2. Lowering the production cost.
3. The objective to achieve faster growth rates.
Due to the lack of output caused by a scarcity of workers in Western nations, the function of technology in economic growth gained increased significance. Although development and growth are two distinct processes, both are necessary when focusing on economic development. It is assisting in the nation’s overall manufacturing of commodities. Even technology has brought online apps with sizes and characteristics that may be customized to suit the preferences of everybody in the entire world.
We may shop from the comfort of our own homes for items that will boost our income and the nation’s economy. By raising economic wealth and income levels, which can also lead to issues on the other side, social health is also developed. According to Schumpeter, the sole factor that determines economic advancement is technological innovation. He was inspired by the tight connection between economic development and technological progress. According to the hypothesis, if one economy is a technology pioneer, another will follow suit and keep the lead in terms of per capita compared to the first.
Technology’s Role in Economic Development
1. Natural Resource Discovery : Utilizing the natural resources that are buried in the oceans, lands, and mountains is made possible by modern technology.
Oil, iron, copper, gas, and gold exploration would not be conceivable without technological innovation.
2. Industrial Revolution: Tractors, High Yield seeds, threshers, insecticides, and fertilizers for plants and agricultural land have all been made possible by technology.
The revolution led to the production of productive crops, which turned into a lucrative industry and assisted in ending the scarcity of food and grains.
3. Increased Productivity: The economy has been able to grow and produce at a faster rate because to technology.
It has been accomplished by effective use of human resources and the use of contemporary methods in the Indian economy’s industrial sector.
4. Long Term Process: An economy grows over a long period of time, and while a short-term procedure may contribute to increase national income for a few years,
it is not thought of as contributing to the country’s overall economic development.
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The effective creation of improved goods and services is claimed to be aided by technology and regional economic growth. The entire process of developing and utilizing technology in the industrial process is complicated. Information technology not only makes the nation richer and more prosperous, but it also provides businesses the potential to make history, something they haven’t been able to do for a very long time. The majority of individuals think that technological advancement and economic expansion are related.
Additionally, it prevents us from working to our full potential, which could result in destruction in the future. Technology involves changes in the availability of resources, in people’s abilities and productivity, in the demographic make-up, and in institutional and organizational structures. The term “technology” also refers to the acquisition of technology without source cooperation. Additionally, it involves the process of implementing and releasing new technologies, as well as bringing one product to market with the help of the entire company.
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Technology as a Remedy For Economic Development
Because technology reduces the need for low-skilled workers and the amount of manpower in an organization, it has a significant impact on the global economy. As tasks are completed automatically by automation and technological advancements, an organization employs fewer people. The use of new technology also led to the identification of the pay disparity. While the gap between rich and poor has widened in many nations, there has been a decline in inequality between nations as a result of the high-income economy’s continued contribution to the fast-growing economy.
This economic integration faces increasing problems as a result of technology. Due to their comparative advantage in hard-earned output from their enormous pools of low-skilled, low-wage workers, productivity-driven development in the developing economy has been a significant component in the relationship. Low self-employment among low-skilled individuals undermines such comparative advantages, necessitating the development of growth alternatives that keep pace with technological advancement.
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Conclusion: Both good and negative effects of technology are being seen on economic progress. It assists in the massive market manufacturing of goods and engages with clients worldwide. Technology has improved international business communication, which is causing businesses to succeed and grow all across the world.
By introducing new mechanisms as a result of technological improvement, it is also improving the efficiency and effectiveness of the firm. The drawback is that as a consequence of the introduction of mechanisms, fewer personnel are needed, which is leading to unemployment in the nation. Additionally, some individuals have been displaced as a result of the installation of equipment to run the firm successfully and efficiently. Controlled technology use is necessary to prevent disruptions to the worker’s lifestyle and pay. In any case, technology plays a significant role in improving enterprises and the nation’s economy. However, we must keep in mind that technology prevents us from performing any unnecessary physical labor, so we must use it where it is necessary and not abuse its availability.
Edeh Samuel Chukwuemeka, ACMC, is a lawyer and a certified mediator/conciliator in Nigeria. He is also a developer with knowledge in various programming languages. Samuel is determined to leverage his skills in technology, SEO, and legal practice to revolutionize the legal profession worldwide by creating web and mobile applications that simplify legal research. Sam is also passionate about educating and providing valuable information to people.