The impact of technological change on the transformation of global and local markets in countries with economies in transition

Abstract

This systematic review analyzes the impact of technological change on market transformation in transition economies, focusing on Ukraine through a synthesis of 85 studies (2010–2025). Guided by PRISMA methodology, the study integrates econometric modeling, sectoral trends, and regional disparities to reveal asymmetric technological adoption. Key findings indicate digital finance and agriculture lead with 45% and 30% adoption rates, contributing 1.8% and 1.2% to GDP, respectively, while manufacturing lags at 8% adoption due to institutional and infrastructural gaps. Econometric results demonstrate that a 1% rise in technological adoption drives 0.58% GDP growth, escalating to 0.76% in high-governance regions like Lviv, where blockchain reduced land fraud by 40%, a novel quantification of governance-technology synergy. Conversely, conflict-affected Donetsk saw -1.5% GDP growth despite partial tech adoption, underscoring governance’s critical moderating role, a previously underexplored factor in transitional contexts. Rural-urban divides persist, with 60% of villages lacking 4G coverage and only 12% of workers trained in AI. The study highlights Ukraine’s dual role as a tech innovator and a cautionary tale of geopolitical and institutional constraints, offering a first-of-its-kind synthesis of crisis-driven innovation and spatial inequities. Practical recommendations include streamlining regulations, investing $500 million in rural broadband, and reskilling 100,000 workers by 2025. By validating endogenous growth theory’s emphasis on localized ecosystems and Schumpeterian disruption, this study pioneers a policy framework tailored to transitional economies, bridging theoretical rigor with actionable metrics for equitable growth.