The relationship between GDP growth and digitalisation

Abstract

This study starts with analysing previous literature to explain the impacts of digitalisation performance on economic development. The subjects of this study are the European Union member states, and their performances and development levels are considered. Member states' real GDP growth rate is collected to reveal the economic development levels. Digital Economy and Society Index (DESI) is used to understand their digital performance better. As a result of the analysis, member states with high digital performance are expected to be better off in the market, and their economic growth is estimated to have faster speed. Technological activities are assumed to have crucial roles in economic activity, including SMEs in e-commerce, mobile banking, and IT infrastructures. As a result of this study, less developed member states with low digital performances have higher GDP growth since they have more space for improvement. Therefore, the decisive effect of digitalisation on the economic growth rate cannot be presented in the expected way.

Keywords

• gdp
• digital economy and society index
• digitalisation
• european union