Salvatore Capasso, Giovanni Canitano (a cura di)
Mediterranean Economies 2023
DOI: 10.1401/9788815411167/c6
Esses, Csete and Németh [2021] investigated the nexus between digitalization and sustainable development for a selected number of countries (the so-called Visegrad Group of Central
{p. 190}European countries). Martinez et al. [2022] also focused on the 27 EU member states (in the period 2015-2019) to empirically find a positive impact of digitalization on a specific facet of sustainability, that is sustainable production (SP). Also related to the economic sphere, we found studies analysing the impact of digitalization on a number of dimensions including, among others, labour market indicators such as employment rate and labour deficit [Polycronidou, Zoumpoulidis and Valsamidis 2021; Başol and Yalçın 2021], entrepreneurship [Ghazy, Ghoneim and Lang 2022], logistics performance [Moldabekova et al. 2021], and economic growth [Fernández-Portillo, Almodóvar-González and Hernández-Mogollón 2020]. Other studies within the same group focused on the nexus between digitalization and dimensions of people’s health and development in all EU countries, notably happiness [Ionescu-Feleagă, Ionescu and Stoica 2022], subjective life satisfaction [Elmassah and Hassanein 2022], sedentary behaviour [Moreno-Llamas, García-Mayor and De la Cruz-Sánchez 2020], and human development [Bogoslov and Lungu 2020].
Finally, the reviewed sample also includes two quantitative studies [Ivanović-Đukić, Stevanović and Rađenović 2019; Stavytskyy, Kharlamova and Stoica 2019] whose goal was to understand the role of digitalization as mediator or dependent variable. Ivanović-Đukić, Stevanović and Rađenović [2019] investigated the influence of digitalization on the relationship between entrepreneurship and economic growth in 21 EU states and found that the level of digitalization has a different role for different types of innovative entrepreneurship. Stavytskyy, Kharlamova and Stoica [2019] extended the analysis to all 28 EU member states (years 2014-2018) focusing on antecedents of digitalization. Interestingly, the authors found that a higher level of economic development of the country leads to an increase in the digitalization of the country and that the level of the country’s digital development is determined primarily by its previous development. From a methodological perspective, consistent with their objectives, all studies in groups two and three tend to rely on a theory-testing approach and adopted a number of inferential statistical methods to test relations among variables that include, among others, structural equation modelling [e.g., Noja et al. 2022], least squares [e.g., Elmassah and Hassanein 2022], and a variety of regression models [e.g., Moreno-Llamas, García-Mayor and De la Cruz-Sánchez 2020]. {p. 191}
This brief literature review clearly shows that little is known about the impact of COVID-19 on digitalization in EU countries, with the most recent data yet to undergo research analysis. Moreover, within the EU, no studies have yet analysed the role of EuroMed countries in boosting the competitiveness of the Mediterranean region as a whole through the digital development of their economic and social activities.

3. Methods

In exploring the main trends regarding digitalization in EuroMed countries, a comparative lens and a longitudinal approach were adopted. The units of analysis are the nine Mediterranean countries making up the informal group called «EuroMed 9», namely Portugal, Spain, France, Italy, Greece, Cyprus, Malta, Slovenia and Croatia. Data about various aspects of digitalization of the above countries were produced and made publicly available by the European Commission in 2022.
These data measure the Digital Economy and Society Index (DESI) and were collected for the years 2017, 2020 and 2022. Descriptive statistics in the form of bar histograms and box plots were elaborated starting from primary data. Referring to table 1, comparative analysis across EuroMed countries and through time was carried out for the following dimensions and indicators: 1) the overall DESI, as an aggregation of its four main dimensions (i.e., human capital, connectivity, integration of digital technology and digital public services) measured with the same weight (25 per cent); 2) each of the four main dimensions of the index; 3) a number of selected indicators related to each main dimension (reported in bold in table 1 for convenience).
In order to support the interpretation of descriptive statistics and help explain the patterns and trends and the digital imbalance among the analysed countries, qualitative data about each country were drawn up by critically examining national digital strategies, laws, government portals and specific DESI country reports produced by the European Commission.{p. 192}

4. Empirical results and discussion

4.1. The overall DESI

To date, digitalization in the EuroMed countries is uneven, since its configuration depends on specific conditions and factors of each region such as available resources, comparative advantages, population size, the scale of the economy and areas of specialisation. In all the figures below, in the second box on the right, the «solid» segment (label on the left) represents the mean value of only the countries in the Med area, while the «dashed» segment (label on the right) represents the mean value calculated for the entire Eurozone.
Figure 1 shows the trend of the Digital Economy and Society Index for the years 2017, 2020 and 2022, in order to understand whether the behaviour of governments, businesses and citizens residing in the Med countries considered has gradually converged towards greater digitalization.
It emerges from the figure that Malta and Spain have the highest index (respectively 60.9 and 60.8). In the same year (2022), Slovenia (53.4) and France (53.3) are positioned close to the European mean (52.5), while Portugal (50.8), Italy (49.3), Cyprus (48.4) and Croatia (47.5) are slightly below the EU mean. Greece (38.9), on the other hand, ranks bottom among the nine Med countries examined. Compared to the previous surveys that took place in 2017 and 2020, all the countries considered showed a positive and fairly similar growth rate towards the greater diffusion of digitalization. This suggests that despite the uneven level of digitalization, there are signs of convergence among EuroMed countries, as evidenced by the reduction of the variability in the boxplot over time: this is markedly lower in the years 2020 and 2022 with the exception of Greece, which appears to be an outlier.
As shown clearly by table 2, all countries witnessed an increase in their overall DESI from 2017 to 2022; however, in 2022 only Malta and Spain were significantly above the EU average. This means that the two countries, as a whole, made sizeable investments in digital infrastructures, disseminated digital knowledge among the population, and saw digital technological solutions circulate between businesses and families. Malta confirmed its ranking {p. 193}from 2021 to 2022, being 6th among EU countries. This excellent position can be explained by the significant investments made over the last five years within the Digital Malta Strategy 2014-2020 on the development and deployment of digital technologies, such as AI and blockchain, with the launch of the first regulatory framework on blockchain in 2018 and its AI Strategy in 2019. Table 2 also shows that Malta made good relative progress as regards the overall level of digitalization of its economy and society, and has maintained a comparatively high ranking within the EU over the last five years.
1.ig. 1. DESI overall score of EuroMed countries (2017-2020-2022).
Definition: weighted score of the DESI dimension (0-100).
Source: authors’ elaboration on the Digital Economy and Social Index, 2022.
Source: authors’ elaboration on the Digital Economy and Social Index, 2022.
Tab. 2. Comparison in the temporal variation of DESI overall score of EuroMed countries
EuroMed Country
Δ2017-2022 (%)
Δ2017-
EU average (%)
Δ2022-
EU average (%)
Position variation in EU ranking
Year 2021 → 2022
Malta
19.2
6.7
8.4
6th→6th
Spain
20.3
5.5
8.3
9th→7th
Slovenia
17.7
0.7
0.9
13th→11th
France
19.5
-1.2
0.8
15th→12th
Portugal
15.3
0.5
-1.7
16th→15th
Italy
21.1
-6.8
-3.2
20th→18th
Cyprus
19.2
-5.8
-4.1
21st→20th
Croatia
17.1
-4.6
-5
19th→21st
Greece
16.5
-12.6
-13.6
25th→25th
 
 
 
 
 
Source: authors’ elaboration on EU data.
Between 2017 and 2022, Malta’s aggregate DESI score grew slightly more than expected by the convergence curve, meaning it improved at a marginally higher pace than the score of the EU as a whole. A case in point is the situation of Portugal, which ranks 15th of the 27 EU Member States in the 2022 edition of the DESI, up one position from last year’s ranking. Portugal’s relative progress was generally slightly below that of its peers, so there is room for the country to accelerate its digitalization efforts. Indeed, it can be observed that despite an increase in its DESI overall score in the period 2017-2022, its position in comparison to the EU average worsened over time, shifting from +0.5 per cent in 2017 to –1.7 per cent in 2022. As for Italy, its position in the EU ranking improved by two points thanks to significant investments in digitalization which explains the highest variation among EuroMed nations between the period
{p. 195}2017-2022 in its overall score (21.1 per cent). Indeed, Italy is catching up and, looking at the progress of its DESI score over the past five years, it is advancing at a considerable pace. In recent years, digital issues have gained political traction notably with the establishment of a ministry responsible for digital affairs, the adoption of several key strategies and the launch of many policy measures. However, this huge effort was not enough to align the country with the EU average, as it is still way below, together with Greece, Croatia, Cyprus and Portugal. However, it is also worth noting that the relative gap reduced from –6.8 per cent in 2017 to –3.2 per cent in 2022. Cyprus also improved its position, climbing one step up from its 2011 ranking. Positively, the country’s relative progress, considering its starting point, is above the expected rate, indicating that it is converging to the EU average. As for Croatia, although its DESI score grew slightly more than that of the EU between 2017 and 2022, its position in the 27 EU Member States ranking slightly worsened. Finally, Greece maintained its position in the ranking, but it is the worst performer among the EuroMed countries in terms of positive variation of its DESI overall score and still below the EU average in 2022, with a gap that even increased compared to 2017.