Formulation of Digitization Impact Index (DII)

Abstract

This research paper is aimed at formulation of Digitization Impact Index (DII) based on five major dimensions, i.e., Share of Information and Communications Technology (ICT) goods in trade (SICT), Per capita Income Growth Rate (PCIGR), Labor Participation Growth Rate (LPGR), Share of Research and Development Expenditure to Income (RDI), and The Digital Economy and Society Index ® (DESI) respectively across 6 sample European countries for the time period of 10 years (2009 – 2018) (Base Year = 2008; DII = 100) by two methods to evaluate and analyze the impact of digitization especially in the perspective of two extremely important macroeconomic factors related to growth of per capita GDP and employment generation among the working population since the era of digitization is synonymous to economic growth and opening of new vistas of employment regardless of geographical locations.