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The role of digital transformation in the socio-economic recovery post COVID-19

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  • Hanan Amin Mohamed

Abstract

Several measures have been taken to reduce the impact of COVID-19 pandemic. One of these measures is the broad digital transformation that has rapidly and unexpectedly forced the deployment of digital technologies into corporations’ business models and organizational structures. This digital transformation has affected all the socio-economic aspects. In response to the COVID-19 global pandemic, this paper explores the impact of the implementation of digital transformation on the socio-economic recovery by employing cross-sectional regression analysis on 99 countries in year 2020. The paper analyzes the impact of digital transformation on each of economic growth, health care, and income inequality. The results reveal that the digital transformation has a positive and significant impact on the GDP per capita in which a 1% increase in digital transformation results in 1.52% increase in GDP per capita, a positive and significant impact on income equality in which a 1% increase in digital transformation leads to 0.05% increase in income equality, and a negative and significant impact on infant mortality rate, in which a 1% increase in digital transformation results in 0.85% decrease in infant mortality rate which reflects its positive impact on the health care. Hence, the digital transformation has a positive and significant effects on different socio-economic aspects.

Suggested Citation

  • Hanan Amin Mohamed, 2023. "The role of digital transformation in the socio-economic recovery post COVID-19," Applied Economics, Taylor & Francis Journals, vol. 55(32), pages 3716-3727, July.
    • Handle: RePEc:taf:applec:v:55:y:2023:i:32:p:3716-3727
    DOI: 10.1080/00036846.2022.2117779
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