IDEAS home Printed from https://ideas.repec.org/a/aic/saebjn/v70y2023isip19-31n1.html
   My bibliography  Save this article

European Efficiency or Inefficiency in Economic Growth Through Digital Transformation

Author

Listed:
  • Mircea Radu Georgescu

    (Alexandru Ioan Cuza University of IaÅŸi, Faculty of Economics and Business Administration)

  • Anca Elena Lungu

    (Alexandru Ioan Cuza University of Iasi, Faculty of Economics and Business Administration)

  • Ioana Andreea Bogoslov

    (Lucian Blaga University of Sibiu, Faculty of Economic Sciences Sibiu)

  • Eduard Alexandru Stoica

    (Lucian Blaga University of Sibiu, Faculty of Economic Sciences Sibiu)

Abstract

The current global changes bring to the fore the importance of the innovation and digital transformation for economic development. Under the previous assumption, an objective evaluation of the economic growth discrepancies, considering the digitalization process, is required. The main goal of the present research is to analyse the economic growth of the European countries, based to the digitalization process, by using an input-output method. Under these circumstances, a Data Envelopment Analysis (DEA) was performed, considering the digitalization dimensions of DESI Index as input and the economic growth (annual %) as output. Based on the proposed model, the results highlighted the bidirectional relationship between economic growth and digitalization. Consistent with the research results, the European countries can be divided in two main categories: the efficient and the inefficient. On one hand, we can find the relatively efficient European states in terms of achieving the economic growth through digitalization (Ireland, Romania, Croatia and Greece). On the other hand, there is a numerous list of the inefficient ones, including important countries like Finland, Germany or France. Obviously, a remarkable aspect related to their situation is that, considering the national available inputs, an output maximization will be possible. According to the proposed model, the efficient countries can serve as peers or optimal benchmarks for solving the issue of relative inefficiency, by adapting and implementing their good practices.

Suggested Citation

  • Mircea Radu Georgescu & Anca Elena Lungu & Ioana Andreea Bogoslov & Eduard Alexandru Stoica, 2023. "European Efficiency or Inefficiency in Economic Growth Through Digital Transformation," Scientific Annals of Economics and Business (continues Analele Stiintifice), Alexandru Ioan Cuza University, Faculty of Economics and Business Administration, vol. 70(SI), pages 19-31, February.
  • Handle: RePEc:aic:saebjn:v:70:y:2023:i:si:p:19-31:n:1
    as

    Download full text from publisher

    File URL: http://saeb.feaa.uaic.ro/index.php/saeb/article/view/2005
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. M. Lábaj & M. Luptáčik & E. Nežinský, 2014. "Data envelopment analysis for measuring economic growth in terms of welfare beyond GDP," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 41(3), pages 407-424, August.
    2. A. Charnes & W. W. Cooper & E. Rhodes, 1981. "Evaluating Program and Managerial Efficiency: An Application of Data Envelopment Analysis to Program Follow Through," Management Science, INFORMS, vol. 27(6), pages 668-697, June.
    3. Charnes, Abraham & Cooper, William W. & Li, Shanling, 1989. "Using data envelopment analysis to evaluate efficiency in the economic performance of Chinese cities," Socio-Economic Planning Sciences, Elsevier, vol. 23(6), pages 325-344.
    4. Jenny C. Aker & Isaac M. Mbiti, 2010. "Mobile Phones and Economic Development in Africa," Journal of Economic Perspectives, American Economic Association, vol. 24(3), pages 207-232, Summer.
    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. Zanakis, Stelios H. & Mandakovic, Tomislav & Gupta, Sushil K. & Sahay, Sundeep & Hong, Sungwan, 1995. "A review of program evaluation and fund allocation methods within the service and government sectors," Socio-Economic Planning Sciences, Elsevier, vol. 29(1), pages 59-79, March.
    2. Glover, Fred & Sueyoshi, Toshiyuki, 2009. "Contributions of Professor William W. Cooper in Operations Research and Management Science," European Journal of Operational Research, Elsevier, vol. 197(1), pages 1-16, August.
    3. Ozcan, Yasar A., 1995. "Efficiency of hospital service production in local markets: The balance sheet of U.S. medical armament," Socio-Economic Planning Sciences, Elsevier, vol. 29(2), pages 139-150, June.
    4. Gutiérrez-Romero, Roxana & Ahamed, Mostak, 2021. "COVID-19 response needs to broaden financial inclusion to curb the rise in poverty," World Development, Elsevier, vol. 138(C).
    5. Franz R. Hahn, 2007. "Determinants of Bank Efficiency in Europe. Assessing Bank Performance Across Markets," WIFO Studies, WIFO, number 31499, August.
    6. Olayinka David-West & Oluwasola Oni & Folajimi Ashiru, 2022. "Diffusion of Innovations: Mobile Money Utility and Financial Inclusion in Nigeria. Insights from Agents and Unbanked Poor End Users," Information Systems Frontiers, Springer, vol. 24(6), pages 1753-1773, December.
    7. Büschken, Joachim, 2009. "When does data envelopment analysis outperform a naïve efficiency measurement model?," European Journal of Operational Research, Elsevier, vol. 192(2), pages 647-657, January.
    8. Simplice A. Asongu, 2014. "Knowledge Economy and Financial Sector Competition in African Countries," African Development Review, African Development Bank, vol. 26(2), pages 333-346, June.
    9. Sulaiman, H. & Malec, K. & Maitah, Mansoor, 2014. "Appropriate tools of Marketing Information System for Citrus Crop in the Lattakia Region, R. A. SYRIA," AGRIS on-line Papers in Economics and Informatics, Czech University of Life Sciences Prague, Faculty of Economics and Management, vol. 6(3), pages 1-10, September.
    10. Adler, Nicole & Friedman, Lea & Sinuany-Stern, Zilla, 2002. "Review of ranking methods in the data envelopment analysis context," European Journal of Operational Research, Elsevier, vol. 140(2), pages 249-265, July.
    11. Chen,Rong - DECIG, 2021. "A Demand-Side View of Mobile Internet Adoption in the Global South," Policy Research Working Paper Series 9590, The World Bank.
    12. Murinde, Victor & Zhao, Tianshu, 2009. "Bank competition, risk taking and productive efficiency: Evidence from Nigeria's banking reform experiments," Stirling Economics Discussion Papers 2009-23, University of Stirling, Division of Economics.
    13. Maude Hasbi & Antoine Dubus, 2019. "Determinants of Mobile Broadband Use in Developing Economies: Evidence from Sub-Saharan Africa," Working Papers hal-02264651, HAL.
    14. Soteriou, Andreas C. & Zenios, Stavros A., 1999. "Using data envelopment analysis for costing bank products," European Journal of Operational Research, Elsevier, vol. 114(2), pages 234-248, April.
    15. Grégoire Rota-Graziosi & Fayçal Sawadogo, 2020. "The tax burden on mobile network operators in Africa," Working Papers hal-03109370, HAL.
    16. Renata Machado de Andrade & Suhyung Lee & Paul Tae-Woo Lee & Oh Kyoung Kwon & Hye Min Chung, 2019. "Port Efficiency Incorporating Service Measurement Variables by the BiO-MCDEA: Brazilian Case," Sustainability, MDPI, vol. 11(16), pages 1-18, August.
    17. Aimable Nsabimana & Patricia Funjika, 2019. "Mobile phone use, productivity and labour market in Tanzania," WIDER Working Paper Series wp-2019-71, World Institute for Development Economic Research (UNU-WIDER).
    18. Fethi, Meryem Duygun & Pasiouras, Fotios, 2010. "Assessing bank efficiency and performance with operational research and artificial intelligence techniques: A survey," European Journal of Operational Research, Elsevier, vol. 204(2), pages 189-198, July.
    19. Freyburg, Tina & Garbe, Lisa & Wavre, Véronique, 2022. "The political power of internet business: A comprehensive dataset of Telecommunications Ownership and Control (TOSCO)," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, issue Online fi, pages 1-1.
    20. Avkiran, Necmi K., 2001. "Investigating technical and scale efficiencies of Australian Universities through data envelopment analysis," Socio-Economic Planning Sciences, Elsevier, vol. 35(1), pages 57-80, March.

    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:aic:saebjn:v:70:y:2023:i:si:p:19-31:n:1. 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: Sireteanu Napoleon-Alexandru (email available below). General contact details of provider: https://edirc.repec.org/data/feaicro.html .

    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.