Abstract
Purpose: The purpose of the paper is to analyze the influence of digitization and to determine the perspectives of reduction of national debt in Industry 4.0 in developing countries.
Design/methodology/approach: As countries of BRICS were the first to be involved into the Fourth industrial revolution, they are the objects of this research. The authors analyze the size of national debt in BRICS countries in 2019. Regression analysis is used for determining the key factors of dynamics of national debt and the influence of the digital economy on national debt. Analysis of variation and probability analysis are used for determining the perspectives of reduction of national debt in developing countries based on the opportunities of the digital economy.
Findings: It is shown by the example of BRICS (2019) that formation of the digital economy in developing countries stimulates the reduction of state budget. Unlike developed countries, the possibilities of using the potential of Industry 4.0 for improvement of dynamics of national debt in developing countries are more limited. The only possibility envisages adaptation of state management to the specifics of digital business.
Originality/value: It is determined that with probability of 45% national debt in BRICS countries in 2020 could be reduced by 14.61–40.87%. The determined large perspectives are the basis for increased attention to development of digital business in developing countries for reduction of national debt.
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The research was performed with financial support from the Russian Foundation for Fundamental Research within the scientific project No. 18-010-00103 A.
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Matvienko, K.V., Milkina, E.A. (2020). National Debt in Industry 4.0 in Developing Countries: Analysis of the Influence of Digitization and Perspectives of Reduction of Debt Obligations. In: Popkova, E., Sergi, B. (eds) Scientific and Technical Revolution: Yesterday, Today and Tomorrow. ISC 2019. Lecture Notes in Networks and Systems, vol 129. Springer, Cham. https://doi.org/10.1007/978-3-030-47945-9_167
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