Competitiveness and Digital Transformation in the Eastern European Countries: A Comparative Analysis of Indicators

Abstract

The paper's goal is to compare the relationship between competitiveness and digital transformation indicators in the Eastern European countries. The World Competitiveness Index, digital transformation index, government efficiency index, business efficiency index, infrastructure index, World Digital Competitiveness Index, knowledge index, technology index, and future readiness index represent the crucial examined indicators. These indices were chosen in order to thoroughly evaluate the level of digital transformation and how it relates to national competitiveness. The comparative analysis employed different methodologies and actual ratings by using representative data. The relationships between important variables have been examined using Spearman's testing of hypotheses. The competitiveness and digital transformation indicators are shown to be strongly positively correlated. A comparative analysis of the Eastern European countries discovered a strong positive correlation between the analyzed indicators, showing that competitiveness is associated with a higher level of digital transformation. The analysis offers an essential dataset for Eastern European countries' comparisons and indicates suggestions for long-term assessments of the relationship between competitiveness and digital transformation. A higher WCI score, which reflects global competitiveness, is connected with high DTI, GEI, BEI, INF, WDCI, KI, TI, and FRI scores. Policies that improve digital infrastructure, talent development, and innovation frameworks are necessary, as seen by the differences in digital transformation levels among nations. The competitiveness and digital transformation key indicators' rankings and scores can be vital for future cross-national comparisons and provide helpful recommendations for policymakers.