How Social Media Affects on Economy?

Abstract

It is commonly accepted that social media reduces the productivity of an organization. However, due to the shape of social media changing over time and assisting to evolve new businesses, several studies state that social media is no more an economic killer. The aim of the present study is to review social media's effect on economic growth. For this purpose, it conducted a systematic literature review. After identifying appropriate keywords, it searched five research databases and extracted related articles. The selected articles were summarised considering the article’s description of social media and economic relations. Apart from that, it searched the social media usage and inflation statistics of economically default countries to visualise the relationship between the usage of social media over inflation. The literature review found social media positively impacts macroeconomic and small business activities, but negatively impacts national economic growth. Proving the literature outcome, the inflation statistics analysis illustrated a positive relation between social media usage and inflation increase. Then it can state that social media affect economic growth adversely but assist to start economic activities.