THE DIGITAL ENTERPRISE LANDSCAPE: HOW DESI METRICS SHAPE ECONOMIC GROWTH IN THE EU

Maria Magdalena Doroiman () and Nicoleta Sirghi ()
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Maria Magdalena Doroiman: Doctoral School of Economics and Business Administration, Faculty of Economics and Business Administration, West University of Timisoara, Timisoara, Romania
Nicoleta Sirghi: Department of Economics and Economic Modelling, Faculty of Economics and Business Administration, West University of Timisoara, Timisoara, Romania

Oradea Journal of Business and Economics, 2024, vol. 9, issue 2, 36-46

Abstract: The European Union’s (EU) economic growth is increasingly driven by digitalization across all areas, including the digital transformation of businesses. This paper explores how the digital transformation of enterprises could influence economic growth in the EU by analyzing data from the Digital Economy and Society Index (DESI) and economic metrics from Eurostat for the post-pandemic period (2021-2022). This paper uses econometric techniques like Panel Corrected Standard Errors (PCSEs) and Robust Regression with Huber Iteration (RRHI) to investigate the cause-and-effect relationships between digitalization and economic factors such as GDP growth rate and real GDP per capita growth. The results show that different digital strategies have varying effects on economic performance. The paper also emphasizes the critical role of real labor productivity in connecting digital transformation with economic performance. The implications of this paper highlight the need for nuanced policy strategies that foster digital skills, improve technological infrastructure and support the Small and Medium Enterprises (SMEs) in their digitalization efforts in order to achieve the ambitious objectives of the EUs Digital Decade. The results also propose a strategic focus on specific technologies that offer immediate economic advantages and enable a stronger incorporation of digital progress across various business operations in the member states.

Keywords: digitalization; digital enterprises; digital policies; digital transformation; economic growth; econometric modelling. (search for similar items in EconPapers)
JEL-codes: I31 J24 O10 O30 (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:ora:jrojbe:v:9:y:2024:i:2:p:36-46

DOI: 10.47535/1991ojbe194

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