Open Access Journal Article

Assessing the Correlation Between Digitalization and Economic Performance: An Empirical Analysis for European Countries

by Ensem Mourou a,*
a
Faculty of Economics, University of Miskolc, Miskolc, Hungary
*
Author to whom correspondence should be addressed.
JIE  2024 2(3):34; https://doi.org/10.58567/jie02030003
Received: 7 May 2024 / Accepted: 17 December 2024 / Published Online: 3 January 2025
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Abstract

The rapid evolution of information and communication technology (ICT) has resulted in significant transformations across a wide range of social and economic activities. As a result, the ongoing digitalization process is emerging as a critical force in determining progress and modernity. This study looks at the complex relationship between digitalization and economic growth in European Union (EU) countries from 2017 to 2022, using the Digital Economy and Society Index (DESI) issued by the European Commission. Our work employs a sophisticated panel data estimate approach and the fundamental Cobb-Douglas model and presents an empirical perspective on the relationship between digital technology and economic prosperity. Based on the fixed-effect panel estimate, our findings show a significant correlation: A 1% rise in digitalization (as measured by the DESI index) correlates with a 0.3838% impressive rise in GDP growth. This study emphasizes the need to comprehend and utilize digital technologies' revolutionary potential. It presents a solid argument for stakeholders and governments to embrace digital innovation and leverage it to achieve long-term, sustainable economic growth.

Keywords: Digitalization; DESI; GDP; Digital economy; Digital transformation;
Copyright: © 2025 by Mourou. This is an open-access article distributed under the terms of the Creative Commons Attribution License (CC BY) (Creative Commons Attribution 4.0 International License). The use, distribution or reproduction in other forums is permitted, provided the original author(s) or licensor are credited and that the original publication in this journal is cited, in accordance with accepted academic practice. No use, distribution or reproduction is permitted which does not comply with these terms.

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ACS Style
Mourou, E. Assessing the Correlation Between Digitalization and Economic Performance: An Empirical Analysis for European Countries. Journal of Information Economics, 2024, 2, 34. https://doi.org/10.58567/jie02030003
AMA Style
Mourou E. Assessing the Correlation Between Digitalization and Economic Performance: An Empirical Analysis for European Countries. Journal of Information Economics; 2024, 2(3):34. https://doi.org/10.58567/jie02030003
Chicago/Turabian Style
Mourou, Ensem 2024. "Assessing the Correlation Between Digitalization and Economic Performance: An Empirical Analysis for European Countries" Journal of Information Economics 2, no.3:34. https://doi.org/10.58567/jie02030003
APA style
Mourou, E. (2024). Assessing the Correlation Between Digitalization and Economic Performance: An Empirical Analysis for European Countries. Journal of Information Economics, 2(3), 34. https://doi.org/10.58567/jie02030003

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