IDEAS home Printed from https://ideas.repec.org/a/gam/jecomi/v12y2024i3p63-d1352393.html
   My bibliography  Save this article

Digital Progression and Economic Growth: Analyzing the Impact of ICT Advancements on the GDP of European Union Countries

Author

Listed:
  • Anastasios I. Magoutas

    (School of Social Sciences, Hellenic Open University, 26335 Patras, Greece
    Department of Business Administration, National and Kapodistrian University of Athens, 10559 Athens, Greece)

  • Maria Chaideftou

    (School of Social Sciences, Hellenic Open University, 26335 Patras, Greece)

  • Dimitra Skandali

    (Department of Business Administration, National and Kapodistrian University of Athens, 10559 Athens, Greece)

  • Panos T. Chountalas

    (School of Social Sciences, Hellenic Open University, 26335 Patras, Greece
    Department of Business Administration, University of Piraeus, 18534 Piraeus, Greece)

Abstract

This research thoroughly examines the dynamic relationship between the European Union’s economic growth and rapid advancements in Information and Communication Technology (ICT). Specifically, it assesses how certain ICT indicators are associated with significant economic growth. Utilizing an extensive dataset from the Digital Economy and Society Index 2022 (DESI), the Statistical Office of the European Union (EUROSTAT), and the Organisation for Economic Co-operation and Development (OECD), this study encompasses data from all 27 European Union member states. Employing structural equation modelling, our analysis illustrates the positive correlation between ICT development and the Gross Domestic Product (GDP) index. Our findings highlight the critical role of swiftly evolving technological landscapes, emphasizing the growing influence of new Artificial Intelligence (AI) technologies in business sectors. Furthermore, this study showcases the need to enhance human capital and expedite the growth of e-government technologies. These advancements are pivotal in strengthening the infrastructure supporting citizens and public enterprises across European countries, thereby contributing to their economic vitality.

Suggested Citation

  • Anastasios I. Magoutas & Maria Chaideftou & Dimitra Skandali & Panos T. Chountalas, 2024. "Digital Progression and Economic Growth: Analyzing the Impact of ICT Advancements on the GDP of European Union Countries," Economies, MDPI, vol. 12(3), pages 1-17, March.
    • Handle: RePEc:gam:jecomi:v:12:y:2024:i:3:p:63-:d:1352393
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2227-7099/12/3/63/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2227-7099/12/3/63/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Albiman, Masoud Mohammed & Sulong, Zunaidah, 2017. "The linear and non-linear impacts of ICT on economic growth, of disaggregate income groups within SSA region," Telecommunications Policy, Elsevier, vol. 41(7), pages 555-572.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Abdulqadir, Idris A. & Asongu, Simplice A., 2022. "The asymmetric effect of internet access on economic growth in sub-Saharan Africa," Economic Analysis and Policy, Elsevier, vol. 73(C), pages 44-61.
    2. Ofori, Isaac K. & Osei, Dennis B. & Alagidede, Imhotep P., 2022. "Inclusive growth in Sub-Saharan Africa: Exploring the interaction between ICT diffusion and financial development," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 46(7).
    3. Njangang, Henri & Beleck, Alim & Tadadjeu, Sosson & Kamguia, Brice, 2022. "Do ICTs drive wealth inequality? Evidence from a dynamic panel analysis," Telecommunications Policy, Elsevier, vol. 46(2).
    4. Henri Njangang & Alim Beleck & Sosson Tadadjeu & Brice Kamguia, 2021. "Do ICTs drive wealth inequality? Evidence from a dynamic panel analysis," Working Papers of the African Governance and Development Institute. 21/057, African Governance and Development Institute..
    5. Samba Diop & Simplice A. Asongu, 2022. "Information and Communication Technologies (ICTs) as catalyst for the achievement of Sustainable Development Goals (SGDs) at the local level in Africa," Working Papers of the African Governance and Development Institute. 22/084, African Governance and Development Institute..
    6. Ofori, Isaac Kwesi & Asongu, Simplice A., 2021. "ICT Diffusion, Foreign Direct Investment and Inclusive Growth in Sub-Saharan Africa," MPRA Paper 107757, University Library of Munich, Germany.
    7. Sun, Hongye & Kim, Giseung, 2021. "The composite impact of ICT industry on lowering carbon intensity: From the perspective of regional heterogeneity," Technology in Society, Elsevier, vol. 66(C).
    8. Abdulqadir, Idris & Asongu, Simplice, 2021. "The asymmetric effect of internet access on economic growth in sub-Saharan Africa: Insight from a dynamic panel threshold regression," MPRA Paper 109904, University Library of Munich, Germany.
    9. Stamopoulos, Dimitrios & Dimas, Petros & Tsakanikas, Aggelos, 2022. "Exploring the structural effects of the ICT sector in the Greek economy: A quantitative approach based on input-output and network analysis," Telecommunications Policy, Elsevier, vol. 46(7).
    10. Julia Varlamova & Ekaterina Kadochnikova, 2023. "Modeling the Spatial Effects of Digital Data Economy on Regional Economic Growth: SAR, SEM and SAC Models," Mathematics, MDPI, vol. 11(16), pages 1-31, August.
    11. Toyo A. M. Dossou & Kihumuro Jotham & Kouessi P. Dossou & Emmanuelle N. Kambaye & Simplice A. Asongu & Alastaire S. Alinsato, 2023. "Do internet and mobile usage affect the Democracy-economic growth nexus in Africa?," Working Papers 23/074, European Xtramile Centre of African Studies (EXCAS).
    12. Emara, Noha & Zhang, Yuanhao, 2021. "The non-linear impact of digitization on remittances inflow: Evidence from the BRICS," Telecommunications Policy, Elsevier, vol. 45(4).
    13. Mounir Dahmani & Mohamed Mabrouki & Adel Ben Youssef, 2021. "The ICT, Financial Development, Energy Consumption and Economic Growth Nexus in MENA Countries: Panel CS-ARDL Evidence," GREDEG Working Papers 2021-46, Groupe de REcherche en Droit, Economie, Gestion (GREDEG CNRS), Université Côte d'Azur, France.
    14. Nchofoung, Tii N. & Asongu, Simplice A., 2022. "ICT for sustainable development: Global comparative evidence of globalisation thresholds," Telecommunications Policy, Elsevier, vol. 46(5).
    15. Zhang, Qianxiao & Shah, Syed Ale Raza & Yang, Ling, 2022. "An Appreciated Response of Disaggregated Energies Consumption towards the Sustainable Growth: A debate on G-10 Economies," Energy, Elsevier, vol. 254(PA).
    16. Kashif Iqbal & Hui Peng & Muhammad Hafeez & Khurshaid, 2020. "Analyzing the Effect of ICT on Migration and Economic Growth in Belt and Road (BRI) Countries," Journal of International Migration and Integration, Springer, vol. 21(1), pages 307-318, March.
    17. Herrera, Gabriel Paes & Constantino, Michel & Su, Jen-Je & Naranpanawa, Athula, 2023. "The use of ICTs and income distribution in Brazil: A machine learning explanation using SHAP values," Telecommunications Policy, Elsevier, vol. 47(8).
    18. Henri Njangang & Alim Beleck & Sosson Tadadjeu & Brice Kamguia, 2021. "Do ICTs drive wealth inequality? Evidence from a dynamic panel analysis," Research Africa Network Working Papers 21/057, Research Africa Network (RAN).
    19. Charles Shaaba Saba & Nicholas Ngepah, 2021. "Nexus between telecommunication infrastructures, defence and economic growth: a global evidence," Netnomics, Springer, vol. 22(2), pages 139-177, December.
    20. N.M. Odhiambo, 2022. "Information Technology, Income Inequality and Economic Growth in sub-Saharan African Countries," Working Papers AESRI-2022-14, African Economic and Social Research Institute (AESRI), revised Jan 2022.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jecomi:v:12:y:2024:i:3:p:63-:d:1352393. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.