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.
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.