THE DYNAMICS OF DIGITAL TRANSFORMATION: REGIONAL TRENDS AND THEIR INTERCONNECTIONS

Eighth International Scientific Conference Contemporary Issues in Economics, Business and Management [EBM 2024], [pp. 267-277]

AUTHOR(S) / АУТОР(И): Cetulean Maxim

Download Full Pdf   

DOI: 10.46793/EBM24.267C

ABSTRACT / САЖЕТАК:

Digital transformation is considered as an important force for economic development in times of structural changes in regions emerging ‘out of the fringes’ and integration into global markets. This paper views the dynamics of digital transformation: regional trends and their interconnections through the example of Serbia, Georgia, and Moldova. The analysis has established major thematic areas highlighting the development of digital infrastructure, the role of innovation in economic modernization, as well as the integration of digital strategies into the public and private sectors.The research closely examines the relationship between Internet connectivity and economic growth in the countries under study. For this purpose, such indicators as the level of broadband penetration, and GDP growth rates. The research findings reveal a significant association between Internet connectivity and economic performance improvements in various sectors, such as digital services, technology-driven industries, and e-commerce. Such findings only confirm the transformative potential that digitalization has in achieving economic resilience as well as innovation. This paper adds to the existing academic literature on digital transformation, by providing empirical evidence of how digital connectivity influences economic growth. This emphasizes the necessity of strategic investment in digital infrastructure and the formulation of policy frames to address regional disparities and attain and enhance sustainable development. The paper’s conclusions will be significant for policymakers and other concerned stakeholders intent on realizing the potential for economic progress and regional integration through the proper application of digital transformation.

KEYWORDS / КЉУЧНЕ РЕЧИ:

Digital transformation, emerging economies, regional development, economic growth, resilience

REFERENCES / ЛИТЕРАТУРА:

  • Atasoy, H. (2013). The effects of broadband internet expansion on labor market outcomes. Industrial and Labor Relations Review, 66(2), 315- 345 https://doi.org/10.1177/001979391306600203
  • Crandall, R., & Jackson, C. (2001). The $500 billion opportunity: The potential economic benefit of widespread diffusion of broadband Internet access. Brookings Policy Brief, 84, 1-8.
  • Cronin, F. J., Parker, B. E., Colleran, K. E., & Gold, A. M. (1991). Telecommunications infrastructure and economic growth: An analysis of causality. Telecommunications Policy, 15, 529–535.
  • Czernich, N., Falck, O., Kretschmer, T., & Woessmann, L. (2011). Broadband infrastructure and   economic   growth. The   Economic   Journal,   121(552),   505- 532 https://doi.org/10.1111/j.1468-0297.2011.02420.x
  • Dutta, A. (2001). Telecommunications and economic activity: An analysis of Granger causality. Journal of Management Information Systems, 17, 71–95.
  • European Commission. (2010). A digital agenda for Europe. European Union. https://doi.org/10.2759/20409
  • Federal Communications Commission (FCC). (2010). Connecting America: The National Broadband Plan. FCC. https://www.fcc.gov/national-broadband-plan
  • Grace, J., Kenny, C., & Qiang, C. (2001). Information and communication technologies and broad-based development: A partial review of the evidence.
  • Gruber, H., & Koutroumpis, P. (2011). Mobile telecommunications and the impact on economic development. Economic Policy, 26(67), 387–426.
  • Katz, R., & Callorda, F. (2018). The economic contribution of broadband, digitization, and ICT regulation. International Telecommunication Union. https://www.itu.int/pub/D-PREF-EF.BDR-2018
  • Koutroumpis, P. (2009). The economic impact of broadband on growth: A simultaneous approach. Telecommunications Policy, 33(9), 471-485.
  • Lee, S., Marcu, M., & Lee, S. (2011). An empirical analysis of fixed and mobile broadband diffusion. Information Economics and Policy, 23(3–4), 227–233 https://doi.org/10.1016/j.infoecopol.2011.05.001
  • Madden, G., & Savage, S. J. (1998). CEE telecommunications investment and economic growth. Information Economics and Policy, 10(2), 173–195  https://ideas.repec.org/a/eee/iepoli/v10y1998i2p173-195.html
  • OECD. (2020). Broadband networks and their impact on economic growth. OECD Digital Economy Papers. https://doi.org/10.1787/5kmh79jrntd5-en
  • Qiang, C. Z. W., Rossotto, C. M., & Kimura, K. (2009). Economic impacts of broadband. Information and Communications for Development 2009: Extending Reach and Increasing Impact, 35-50.
  • Röller, L. H., & Waverman, L. (2001). Telecommunications infrastructure and economic development: A simultaneous approach. American Economic Review, 91(4), 909- 923. https://doi.org/10.1257/aer.91.4.909
  • Yilmaz, S., Haynes, K., & Dinc, M. (2001). The impact of telecommunications infrastructure investment on sectoral growth. Australasian Journal of Regional Studies, 7, 383– 397.