IMPACT OF ICT SECTOR DEPLOYMENT ON THE ECONOMIC DEVELOPMENT OF THE EUROPEAN UNION

The information and communication technology (ICT) usage and the digitalization, as the broader implication of ICT deployment, fosters innovation and social cohesion and, over time, becomes an increasingly important driver of economic and social growth. Moreover, the digitalization yield directly to...

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Bibliographic Details
Main Authors: Petrić, Marin, Praničević, Daniela Garbin, Šimundić, Blanka
Format: Conference Proceeding
Language:English
Subjects:
Access to information
Communication
Digital economy
Digital technology
Economic development
Economic growth
Human Development Index
Internet access
Software
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Summary:The information and communication technology (ICT) usage and the digitalization, as the broader implication of ICT deployment, fosters innovation and social cohesion and, over time, becomes an increasingly important driver of economic and social growth. Moreover, the digitalization yield directly to economic growth through the ICT supply side by enhancing the contribution of ICT goods and services in total value added (i.e. production effect). Although the impact of ICT on economic growth and overall development over time become more evident, due to rising in ICT investments and ICT usage, the analyses based on the comprehensive indicators of the economic and the ICT development, still remain open for additional research attention. In that context, the aim of the paper is to explore the impact of the ICT sector on the development of EU countries. In this research context, the Human Development Index (HDI) was used as an indicator of economic development, that indicate the life quality of individuals in EU countries in terms of their income, the estimated life expectancy and the educational level. Additionally, International Digital Economy and Society Index (DESI) is used as an indicator of the ICT sector development. The empirical research was conducted on a sample of 28 EU countries. By using a dynamic panel model it was determined that ICT variable influence the HDI of EU countries. Survey results also indicate that broadband Internet usage, individual-level of Internet use and ecommerce use positively contribute to the EU economic development, while the use of egovernment services and the increase number of the ICT professionals employed have a negative impact on the same variable. Since the research results provide insight into the areas relevant for economic development the same may contribute and be used as a guideline for development policies at national and sectoral levels as well.
ISSN:2671-132X
2671-132X