The impact of digital transformation on macroeconomic stability: Evidence from EU countries
The impact of digital transformation on macroeconomic stability: Evidence from EU countries
Author(s): Inna Tiutiunyk, Josef Drábek, Nataliia Antoniuk, Valentinas Navickas, Pavlo RubanovSubject(s): Supranational / Global Economy, Business Economy / Management, Evaluation research, Economic development, Transformation Period (1990 - 2010), Present Times (2010 - today), EU-Accession / EU-DEvelopment, ICT Information and Communications Technologies
Published by: Fundacja Centrum Badań Socjologicznych
Keywords: macroeconomic stability; digital transformation; competitive advantages; sustainable development; financial innovation;
Summary/Abstract: The article deals with investigating the role of digital transformation in achieving competitive advantages of the economy. The paper identifies the benefits and risks of the digital transformation for macroeconomic stability of the economy. The comparison of the average level of the digital transformation and indicators of macroeconomic stability of EU countries for the period 2001–2020 allowed the authors to distinguish clusters of countries by the nature and direction of the relationship between the analyzed indicators. The results of VAR modelling on the example of EU countries proved the relationship between the level of digitalization of the economy and indicators of its macroeconomic stability. The paper simulates the responses of macroeconomic stability parameters to single and accumulated shocks of digital transformation. The results show the bidirectional causality between the digital transformation of the economy and indicators of its macroeconomic stability. The findings of the study are beneficial for authorities to form competitive advantages of the economy and its sustainable development.
Journal: Journal of International Studies
- Issue Year: 14/2021
- Issue No: 3
- Page Range: 220-234
- Page Count: 15
- Language: English