Analysis of the Connection between the Digital Economy and Society Index and Economic Growth. The Case of Romania

Abstract:

Nowadays the concept of digitization is found in all areas of economic life and has become a necessity more than a trend, a focus at European level and a determining factor of economic growth. For this reason, starting with 2015 at EU level, the Digital Economy and Society Index is calculated, a complex index, which incorporates five components considered essential for assessing the size of the digital economy.  The Digital Economy and Society Index includes five main components: connectivity, human capital, internet use, digital technology integration, digital public services. In this paper we intend to determine the connection between the five main components of Digital Economy and Society Index  and economic growth in Romania. In this sense we used data series for the period 2015 - 2020 and as a research method we used linear regression. This analysis aims to highlight the level at which Romania is within the 28 EU states, as well as to highlight the role that the components of the digital economy and society have in economic growth. This analysis is useful in order to determine the level at which our country is compared to European Union countries and to identify which component of the Digital Economy and Society Index has a significant influence on economic growth. Last but not least, based on the conclusions obtained, it is possible to determine the measures to be taken and especially the vulnerabilities that hinder the performance of digitization.