Growth Theory of Digital Economics

Abstract

In this chapter, we will discuss about the theory of economic growth, and study on thoughts of economic growth theory to analyze and derive the growth theory of digital economy. We see that the digital economy has been growing rapidly, showing characteristics not only of traditional economic growth, but also unique to itself. This provides us a new way to study on the growth of the digital economy: on the one hand, we must inherit the basic framework and concepts in the traditional economic growth theory, that is, link economic output with the scale of labor and capital and productivity, etc. to form a basic framework to understand economic growth. On the other hand, we should see the differences in the forms of the digital economy, especially the network economy, and explore the internal logic in the growth of the network economy based on the complicated and heterogenous research model of economic utility. Next, we will have a discussion on the growth theory of digital economics from three different perspectives: the equation of digital economic growth, the limitations of traditional growth theory, and a new perspective for digital economics.