Title: Pleasure economy vs. industrial economy in developing countries in Industry 4.0

Authors: Sergei V. Shkodinsky; Olga V. Titova; Elena A. Sulimova; Oleg G. Karpovich

Addresses: Financial Research Institute of the Ministry of Finance of the Russian Federation, Moscow, 127006, Russia; Institute of Market Problems, Russian Academy of Sciences, Moscow, 117418, Russia; Department of Innovation Management in Industries of the Engineering Academy of RUDN University, Moscow, 117198, Russia ' Department of Finance and Credit of Altai State University, Federal State Budgetary Institution of the Higher Education "Altai State University", Barnaul, 656049, Russia ' Plekhanov Russian University of Economics, Educational and Scientific Center "Management", Academic Department of Organizational and Managerial Innovations, Moscow, 115093, Russia ' Director of the Institute for Contemporary International Studies of the Diplomatic Academy of the Ministry of Foreign Affairs of the Russian Federation, Moscow, 119034, Russia

Abstract: The purpose of the paper is to develop a scientific concept of using transition to Industry 4.0 as a mechanism of formation and development of the pleasure economy for stimulating the sustainable development and increase of quality of life in developing countries. The authors determine multiple regression dependence of the index of application of technologies of Industry 4.0 and the green economy index on the sectorial structure of GDP according to the World Bank and determine the optimal share of each sphere that is necessary for achieving the target value of the index of application of technologies of Industry 4.0 and the green economy index. The authors prove that if state interference with Industry 4.0 is insufficient, this will strengthen their industrial specialisation, and the economy will be built on this. This will lead to increase of ecological costs and to decline of quality of life.

Keywords: pleasure economy; industrial economy; developing countries; scenarios of economic growth; digital economy; Industry 4.0.

DOI: 10.1504/IJTGM.2021.116736

International Journal of Trade and Global Markets, 2021 Vol.14 No.4/5, pp.404 - 412

Received: 04 Feb 2020
Accepted: 18 Apr 2020
Published online: 31 Jul 2021 *

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