A Comprehensive and Critical Literature Review of Dependency Theory from 2005 to 2025 in the Context of the Digital Age

This literature review provides a comprehensive and critical analysis of the evolution and application of dependency theory from 2005 to 2025, specifically within the context of the digital age. While traditional dependency theory focuses on economic and industrial disparities between the "core" and "periphery," this review demonstrates its renewed relevance in understanding contemporary global inequalities driven by digital transformation. The central argument synthesized from the literature is that a new form of "digital dependency" has emerged, characterized by mechanisms such as platform capitalism, data colonialism, and algorithmic control, which reinforce and deepen historical power imbalances (Couldry & Mejias, 2019; Kwet, 2019).The review traces the theoretical shift from classic dependency to neo-dependency frameworks capable of analyzing the roles of multinational technology corporations and intangible data flows. It critically examines the empirical dimensions of this new dependency, including reliance on foreign-owned digital infrastructure, technological lock-in, and the rise of financial neo-colonialism through fintech.Furthermore, the review explores the burgeoning counter-movements in the Global South, centered on achieving digital and data sovereignty through policy innovation, indigenous data governance, and the development of alternative technological platforms (Hummel et al., 2021; Taylor & Kukutai, 2016). By synthesizing two decades of scholarly work, this review argues that dependency theory remains an indispensable critical lens for interrogating the political economy of the digital age, revealing how digital inclusion can paradoxically entrench new and more insidious forms of exploitation. It concludes by identifying key gaps in the current literature and proposing future research directions to further decolonize our understanding of technology's role in global development.