THE SOCIAL CONSEQUENCES OF DIGITALIZATION: THE EXPERIENCE OF THE EUROPEAN UNION
I.V. YASHCHYSHYNA 1
T.L. BODNARCHUK 1
1 Kamianets-Podilskyi Ivan Ohiienko National University, Ukraine
Nauka naukozn. 2022, 3(117): 03–20
Section: Science and Innovation-driven Development of Economy and Society
Abstract: The impact of digital economic transformation on the social development of the EU countries as a result of the research is highlighted. The research problem is chosen in view of the increasing role of digitalization in all the aspects of modern socio-economic life and the uncertainty of its consequences, especially the social ones. The study is based on methods of classification (to systematize positive effects and threats of the digitalization process by a set of criterial features of the social sphere) and regression analysis (to determine the vector and the significance of correlation between the indicators of digitalization and social development in EU countries). Its references sources are research works of foreign and domestic scientists and statistical data of the EU and international organizations.
Positive effects and threats of the economy digitalization are classified and summed up for the social sphere as a whole and the following areas: employment and social relations, the level of satisfaction of needs, literacy and education of the population, access to medical care, social security and protection, social communication. It is demonstrated that the social consequences of the digital economic transformation are controversial in nature, given that the informatization of the economy, apart from positive effects on society and human, increases the threats such as structural unemployment, social differentiation, digital divide, loss of privacy, etc.
A correlation between the levels of digital and social development in EU countries was revealed by constructing and verifying econometric models of dependence of social indicators (Human Development Index and Social Progress Index) on measures of digitalization (Digital Economy and Society Index and Digital Competitiveness Rating). The constructed paired regressions confirmed the social effects of digitalization. The results of the study can be used by national government offices for strategic support to digitalization of the Ukrainian economy on the whole and facing social challenges in particular.
Keywords: digitalization, social development of countries, social sphere, digital technologies, Internet users, IMD World Digital Competitiveness Ranking, Digital Economy and Society Index.
- Ayhan, B. (Ed.) (2017). Digitalization and Society. New York. https://doi.org/10.3726/978-3-653-07022-4
- Brenner, B., & Hart, B. (2021). The perceived relationship between digitalization and ecological, economic, and social sustainability. Journal of Cleaner Production, 315. https://doi.org/10.1016/j.jclepro.2021.128128
- Schiffhauer, B., & Seelmeyer, U. (2021). Responsible Digital Transformation of Social Welfare Organizations. Digital Transformation of Learning Organizations, 131–144. https://doi.org/10.1007/978-3-030-55878-9_8
- Katz, R.L. (2017). Social and economic impact of digital transformation on the economy. GRS17 Discussion paper.
- Komarčević M., Dimić M., & Čelik, P. (2017). Challenges and impacts of the digital transformation of society in the social sphere. SEER: Journal for Labour and Social Affairs in Eastern Europe, 20(1), 31–48. https://doi.org/10.5771/1435-2869-2017-1-31
- Weiss, Ch., Ficarra, M., Rückert, D., & Virginie, A. (2021). Digitalization in Europe 2020– 2021: Evidence from the EIB Investment Survey. European Investment Bank.
- Krzywdzinski, M., Gerber, Chr., & Evers, M. (2018). The Social Consequences of the Digital Revolution. Le grandi questioni sociali del nostro tempo: a partire da Luciano Gallino. Edizioni Ca’ Foscari, Venezia, 101–120. https://doi.org/10.30687/978-88-6969-273-4/008
- Hrytsenko, A., & Burlai, T. (2020). The impact of digitalization on social development. Economic theory, 3, 24–51. https://doi.org/10.15407/etet2020.03.024 [in Ukrainian].
- Khaustov, М.М., & Bondarenko, D.V. (2021). Digitalization: gains and treats for society. Scientific collection «Interconf», 51, 49–58 [in Ukrainian].
- Khandii, O. (2019). Social threats in the digitalization of economy and society. Fifteenth Scientific and Practical International Conference «International Transport Infrastructure, Industrial Centers and Corporate Logistics», 67. https://doi.org/10.1051/shsconf/20196706023
- Khandii, O.О., & Shamileva, L.L. (2019). The impact of digital transformation on the economy and labor: socio-economic risks and implications. Economic Herald of the Donbass, 3(57), 181–189. http://doi.org/10.12958/1817-3772-2019-3(57)-181-188 [in Ukrainian].
- Lyashenko, V. І., & Vishnevskyi, О. S. (2018). Digital modernization of Ukraine’s economy as an opportunity of breakthrough development. Kyiv [in Ukrainian].
- Kostyshyna, Т. (2021). Social protection in the context of the development of the digital economy. Economic Analysis, 31, 1, 279–288. http://doi.org/10.35774/econa2021.01.279 [in Ukrainian].
- Yeliseiva, L.V. (2019). The impact of information and digitalization of the economy on the transformation of social capital. Effective Economy, 11. http://doi.org/10.32702/2307-2105-2019.11.77 [in Ukrainian].
- Pyshchulina, O. (2020). Digital economy: trends, risks and social determinants. Kyiv: Zapovit [in Ukrainian].
- Plikus, I. (2019). Entrepreneurship and self-employment in the digital economy: state, problems, and new opportunities.
Young Scientist, 11 (75), 591–595. https://doi.org/10.32839/2304-5809/2019-11-75-126 [in Ukrainian].
- Pukhtaevych, G.O. (2003). Analysis of the national economy. Kyiv National Economic University [in Ukrainian].
- Stern, S., Krylova, P., & Harmacek, J. (2020). Social Progress Index 2020. Methodology Summary. Washington.