The impact of digitalization on public administration, economic development, and well-being in the EU countries

Androniceanu, Armenia (author), Georgescu, Irina (author), Sabie, Oana Matilda (author)

Purpose : Digitalization has been the driving change in creating jobs and increasing economic growth in recent years. However, the digitalization of countries and sectors is uneven. The paper focuses on various factors that have an impact on the economic development and well-being in EU countries. Its purpose is to show the evolution of EU countries in terms of digital transformation and how other indicators, such as e-government, human development index, labour productivity, and economic growth influenced the well-being in EU countries in 2019–2021. Design/methodology/approach: The dataset consists of 15 numerical indicators extracted from Eurostat and World Bank databases. We apply principal component analysis and cluster analysis. Findings and Practical Implications: The main research results show that the first dimension – named the impact of innovation on well-being – is dominated by e-government, the percentage of ICT specialists in total, internet use by individuals, the Human Development Index, the Digitalization Index, the Happiness Indicator, human capital, and the integration of digital technology. The second dimension is characterized by government expenses and productivity. Finally, the third dimension is dominated by the GDP growth rate. 77.67% of the total variance is explained by the first three principal components. Originality: Four clusters have been identified by means of the K-Means clustering algorithm. All four clusters are well determined, with cluster 1 including the three Nordic countries ranking first, followed by cluster 3 of well-developed countries and cluster 4 containing mainly emerging economies.

• Language: English
• Keywords: public administration, digitalization, economic growth, well-being
• Work type: Article
• Typology: 1.01 - Original Scientific Article
• Organization: FU - Faculty of Administration
• Publication status: Published
• Publication version: Version of Record
• Year: 2022
• Number of pages: Str. 9-31, 191
• Numbering: Vol. 20, no. 2
• PID: 20.500.12556/RUL-143419
• UDC: 35:004(4-6EU)
• ISSN on article: 2591-2240
• DOI: 10.17573/cepar.2022.2.01
• COBISS.SI-ID: 132381955
• Publication date in RUL: 20.12.2022

Record is a part of a journal

• Title: Central European public administration review
• Publisher: Fakulteta za upravo
• ISSN: 2591-2240
• COBISS.SI-ID: 293849600

Licences

• License: CC BY-NC-ND 4.0, Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International
• Link: http://creativecommons.org/licenses/by-nc-nd/4.0/
• Description: The most restrictive Creative Commons license. This only allows people to download and share the work for no commercial gain and for no other purposes.

Secondary language

• Language: Slovenian
• Title: Vpliv digitalizacije na javno upravo, gospodarski razvoj in blaginjo v državah EU

Abstract

Namen: V zadnjih letih je digitalizacija gonilo sprememb pri ustvarjanju delovnih mest in povečevanju gospodarske rasti, vendar v vseh državah in panogah ne poteka enakomerno. Prispevek izpostavlja dejavnike, ki vplivajo na gospodarski razvoj in blaginjo v državah EU. Njegov namen je prikazati razvoj držav EU z vidika digitalne preobrazbe ter kako so drugi kazalniki, kot so e-uprava, indeks človekovega razvoja, produktivnost dela in gospodarska rast, vplivali na blaginjo v državah EU v obdobju 2019–2021. Zasnova/Metodologija/Pristop: Podatki temeljijo na 15 numeričnih kazalnikih, pridobljenih iz podatkovnih zbirk Eurostata in Svetovne banke. Uporabljena je analiza glavnih komponent in analiza po metodi razvrščanja v skupine. Ugotovitve in vpliv v praksi: Glavni rezultati raziskave kažejo, da v prvi dimenziji, imenovani vpliv inovacij na blaginjo, prevladujejo e-uprava, delež strokovnjakov za IKT, uporaba interneta med posamezniki, indeks človekovega razvoja, indeks digitalizacije, kazalnik sreče, človeški kapital in vključevanje digitalne tehnologije. Za drugo dimenzijo so značilni državni izdatki in produktivnost. V tretji dimenziji prevladuje stopnja rasti BDP. S prvimi tremi glavnimi komponentami je pojasnjenih 77,67 % celotne variance. Izvirnost: Z algoritmom za razvrščanje v skupine K-Means so bili določene štiri skupine. Na prvem mestu je skupina št. 1, ki vključuje tri nordijske države, sledita skupina št. 3 z razvitimi državami in skupina št. 4 z gospodarstvi v vzponu.

• Keywords: javna uprava, digitalizacija, gospodarska rast, blaginja