The Use of the Data Envelopment Analysis–Malmquist Approach to Measure the Performance of Digital Transformation in EU Countries

Jarmila Horváthová and Martina Mokrišová ()
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Jarmila Horváthová: Faculty of Management and Business, University of Prešov, Konštantínova 16, 080 01 Prešov, Slovakia
Martina Mokrišová: Faculty of Management and Business, University of Prešov, Konštantínova 16, 080 01 Prešov, Slovakia

Economies, 2024, vol. 12, issue 11, 1-20

Abstract: Currently, the process of the digital transformation of EU countries is very important and often discussed. It will not only bring new opportunities for companies and the broader population but will also enable the transition to a more ecological economy. An important goal is to speed up the digitalization processes taking place in companies. It is very important to use already established digitalization elements more efficiently. This also resulted in the motivation for the given research. The aim of this paper is to quantify the change in the efficiency of the digital transformation of EU countries. As part of this research, the Variable Returns to Scale Data Envelopment Analysis (VRS DEA) model and the Malmquist index (MI) based on the DEA approach were applied. The results of the model made it possible to assess how the changes in technical efficiency and technological changes contributed to the changes in efficiency. The long-term theoretical added value of this paper lies in its proposal for countries and their governments to monitor not only the number of introduced digital elements, but also the efficiency of their use relative to some aggregate output; for example, GDP (Gross Domestic Product) or unemployment rate. The added value of this research is that less developed countries use digitalization elements more effectively than developed countries.

Keywords: data envelopment analysis; digital transformation; efficiency; Malmquist index; EU countries (search for similar items in EconPapers)
JEL-codes: E F I J O Q (search for similar items in EconPapers)
Date: 2024
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