Global Analysis Regarding the Impact of Digital Transformation on Macroeconomic Outcomes

Abstract

In the context of the development of information technologies, the concerns about assessing the effects of digital transformation have increased. Although it is intuitively accepted that digital transformation has a favourable impact on macroeconomic variables (based on the interdependencies between micro- and macroeconomic performance), there is little scientific research providing evidence of this. Building on this identified research problem, this study aims to bridge the gap between theory and practice. After assessing the extent to which the world’s economies have responded to the need for digital transformation, an econometric analysis was conducted to quantify the impact of digital transformation on economic and social outcomes. To ensure the representativeness of the results, the econometric analysis was conducted on a sample of 46 countries selected according to the size of their gross national income per capita. The NRI (Network Readiness Index) and the sub-indices associated with the economic environment (future technologies, business, and economy) were used as independent variables. Gross domestic product (GDP) was used as a dependent variable. The results indicate that NRI has a positive and significant impact on GDP per capita. Analysis at the sub-indices level partially confirms this result and highlights that their contributions to the growth of macroeconomic performance may be different. The study results have practical utility as they provide clues on the structural efficiency of the benchmarks underpinning the digital transformation. To increase the positive impact on macroeconomic outcomes, policy-makers can propose and implement policies to facilitate access to those technologies that prove to be more effective.