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

Author

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  • 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
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    References listed on IDEAS

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    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.
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