Inna Tiutiunyk

Department of Finance and Entrepreneurship, Sumy State University, Ukraine

i.karpenko@finance.sumdu.edu.ua 

ORCID 0000-0001-5883-2940

The impact of digital transformation on macroeconomic stability: Evidence from EU countries

Josef Drabek

Faculty of Wood Sciences and Technology

Technical University in Zvolen, Slovakia

josef.drabek@tuzvo.sk 

ORCID 0000-0001-6855-6919

Nataliia Antoniuk

Department of Finance and Entrepreneurship, Sumy State University, Ukraine

n.antoniuk@finance.sumdu.edu.ua 

ORCID 0000-0001-8610-3219

Valentinas Navickas

Alexander Dubcek University of Trencin, Trencin, Slovakia

valentinas.navickas@ktu.lt

ORCID 0000-0002-7210-4410

Pavlo Rubanov

Department of Finance and Entrepreneurship, Sumy State University, Ukraine

p.rubanov@finance.sumdu.edu.ua 

ORCID 0000-0002-9415-8786

Abstract. The article deals with investigating the role of digital transformation in achieving competitive advantages of the economy. The paper identifies the benefits and risks of the digital transformation for macroeconomic stability of the economy. The comparison of the average level of the digital transformation and indicators of macroeconomic stability of EU countries for the period 2001–2020 allowed the authors to distinguish clusters of countries by the nature and direction of the relationship between the analyzed indicators. The results of VAR modelling on the example of EU countries proved the relationship between the level of digitalization of the economy and indicators of its macroeconomic stability. The paper simulates the responses of macroeconomic stability parameters to single and accumulated shocks of digital transformation. The results show the bidirectional causality between the digital transformation of the economy and indicators of its macroeconomic stability. The findings of the study are beneficial for authorities to form competitive advantages of the economy and its sustainable development.

Received: February, 2021

1st Revision: June, 2021

Accepted: September, 2021

DOI: 10.14254/2071-8330.2021/14-3/14

JEL Classification: H20, H71, F49, K34

Keywords: macroeconomic stability, digital transformation, competitive advantages, sustainable development, financial innovation