Sustainable Economic Development and Digital Progress of EU Countries

Abstract

Global economic trends are shifting steadily in the direction of digital and sustainable economy, so countries throughout the world strive to achieve sustainable development along with digital change. Like the rest of the world, the EU economies face significant challenges related to new technologies, digital and sustainable economic development. The relationship between digitalization and sustainable development has been the subject of recent research. This paper's objective is to demonstrate the success of the European Union in digitalization and sustainable economic development. The paper uses regression to analyze the link between the DESI index and the variables of sustainable economic development in the EU countries for the period 2016-2020. The results show that all the variables are positive and statistically significant at the 1% level, except adjusted net savings (ANS) which is insignificant. Additionally, the DESI index will rise by 0.794%, 0.264%, and 9.602% respectively if income per capita, renewable energy, and urbanization grow by 1%. The variables of sustainable economic development have influence on digital performance of the EU economies.