This study examines the impact of digital transformation on GDP growth in seven European countries—France, Italy, Sweden, Germany, Czech Republic, Hungary, and Austria—between 2017 and 2022. Using panel data methods, the analysis highlights the positive contribution of the Digital Economy and Society Index (DESI) and R&D expenditure to economic performance. Tertiary education exhibits a significant negative impact, reflecting inefficiencies in aligning education systems with the demands of a digital economy, while trade openness moderates DESI’s impact, with diminishing returns at higher levels. Lagged effects indicate that the benefits of digital transformation take time to materialize. The findings underscore the need for investments in digital infrastructure, innovation, and workforce reskilling, along with addressing regional disparities. This research contributes to understanding digital transformation’s role in fostering inclusive and sustainable growth.
Cite this paper
Regasse, G. and Karfa, Z. (2025). The Impact of Digital Transformation on Economic Growth: A Panel Analysis of Seven European Countries (2017-2022). Open Access Library Journal, 12, e2994. doi: http://dx.doi.org/10.4236/oalib.1112994.
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