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Assessing the Impact of ICT Sector on Sustainable Development in the European Union: An Empirical Analysis Using Panel Data

Author

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  • Sorin-Iulian Cioacă

    (Department of Money and Banking, the Bucharest University of Economic Studies, 010961 Bucharest, Romania)

  • Silvia-Elena Cristache

    (Department of Statistics and Econometrics, the Bucharest University of Economic Studies, 010552 Bucharest, Romania)

  • Mariana Vuță

    (Department of Finance, the Bucharest University of Economic Studies, 010961 Bucharest, Romania)

  • Erika Marin

    (Department of Statistics and Econometrics, the Bucharest University of Economic Studies, 010552 Bucharest, Romania)

  • Mihai Vuță

    (Department of Accounting and Auditing, the Bucharest University of Economic Studies, 010374 Bucharest, Romania)

Abstract

Information and communication technologies (ICT) play a central role at the European level because it fosters innovation and increases productivity through an enlarged access to information. As such, the main objective of this work was to assess the impact of various ICT core indicators at the European Union level on two of their sustainable development goals: economic growth and reduction of inequality. To this purpose, we used panel data models based on data collected from the Eurostat database. We proposed two panel data regression models, according to which we found a positive statistically significant relationship between the variable measuring level of internet access and change in GDP per capita. We also found a negative relationship between the transition towards a digital society and the dependent variable INEQ_INC, namely an increase of 1% of ICT sector share in GDP will lead to a decrease of 0.27% of income inequality distribution. This result showed that the progress made in implementing a digital society may decrease societal income inequality.

Suggested Citation

  • Sorin-Iulian Cioacă & Silvia-Elena Cristache & Mariana Vuță & Erika Marin & Mihai Vuță, 2020. "Assessing the Impact of ICT Sector on Sustainable Development in the European Union: An Empirical Analysis Using Panel Data," Sustainability, MDPI, vol. 12(2), pages 1-16, January.
    • Handle: RePEc:gam:jsusta:v:12:y:2020:i:2:p:592-:d:308299
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