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The Digital Enterprise Landscape: How Desi Metrics Shape Economic Growth In The Eu

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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)

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.

Suggested Citation

  • Maria Magdalena Doroiman & Nicoleta Sirghi, 2024. "The Digital Enterprise Landscape: How Desi Metrics Shape Economic Growth In The Eu," Oradea Journal of Business and Economics, University of Oradea, Faculty of Economics, vol. 9(2), pages 36-46, September.
    • Handle: RePEc:ora:jrojbe:v:9:y:2024:i:2:p:36-46
    DOI: http://doi.org/10.47535/1991ojbe194
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    digitalization; digital enterprises; digital policies; digital transformation; economic growth; econometric modelling.;
    All these keywords.

    JEL classification:

    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General

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