TRANSFORMATION OF THE EUROPEAN IT SECTOR UNDER THE INFLUENCE OF FINANCIAL AND ECONOMIC INSTABILITY
Abstract
The article is devoted to the study of the transformation of the European IT sector in the current conditions, which is one of the steps towards understanding how digital solutions in the financial sector affect the overcoming of financial and economic instability in European countries. The authors conduct a thorough review of existing developments in global and national science, determining that the dynamism of changes and the rapid spread of information technologies in the world economy mandate a more in-depth study of the chosen topic. The article investigates the key aspects of the European Commission's initiative to create a Digital Single Market (2015) and shows that digitalization facilitates the generation of new ideas, prompting rapid modification of existing business models and thereby increasing the importance of building an IT sector that would produce solutions and tools for these developments. The article further analyzes the specifics of information technology implementation in the financial sector, identifies the benefits and risks of its digitalization. The authors substantiate the need to form and develop an institutional and legal framework for the functioning of the digital economy based on international cooperation in order to combine the traditional system with the newly developing one, so that economic entities can enjoy the benefits without being subjugated to artificial intelligence. It has been shown that excessive use of mobile money transactions and ATMs can also contribute to financial sector instability by increasing the percentage of non-performing loans and the ratio of bank loans to deposits. The growing use of mobile and online transactions raises the issue of cybersecurity, which requires new IT solutions, as better and more advanced technological infrastructure helps to control financial fraud to some extent. It is concluded that the rapid introduction of IT solutions in the financial sector necessitates access to sufficient resources and revenues in less developed member states to be able to compete in the EU market; the search for IT solutions to mitigate risks increases the need to increase investment in the creation of a secure and stable digital infrastructure. The authors' further research will be aimed at substantiating the strategic directions of IT solutions implementation in the context of financial inclusion and stability.
References
Дугінець Г.В., Генералов О.В., Методологічний контент функціонування «ідеального шторму» в глобальному вимірі. Проблеми економіки. 2023. №3. C. 215–220. DOI: https://doi.org/10.32983/2222-0712-2023-3-215-220
Kwilinski, A., Lyulyov, O., & Pimonenko, T. The Impact of Digital Business on Energy Efficiency in EU Countries. Information, 2023. 14 (9), Article 480. https://doi.org/10.3390/info14090480
Szeles, M. R., & Simionescu, M. Regional patterns and drivers of the EU digital economy. Social Indicators Research, 2020 150(1), 95-119. https://doi.org/10.1007/s11205-020-02287-x
Oloyede, A. A., Fark, N., Noma, N., Tebep, E., & Nwaulune, A. K. Measuring the impact of the digital economy in developing countries: A systematic review and meta-analysis. Heliyon. 2023. https://doi.org/10.1016/j.heliyon.2023.e17654
Nicoli, N., & Iosifidis, P. EU digital economy competition policy: From ex-post to ex-ante. The case of Alphabet, Amazon, Apple, and Meta. Global Media and China, 2023. 8(1), 24-38. https://doi.org/10.1177/20594364231152673
Lambach, D., & Monsees, L.. Beyond sovereignty as authority: the multiplicity of European approaches to digital sovereignty. Global Political Economy (published online ahead of print 2024). https://doi.org/10.1332/26352257Y2024D000000007
Nordhaus, W.D. Productivity growth and the new economy. Brook. Pap. Econ. Act. 2002, 33, 211–26. URL: https://www.nber.org/papers/w8096
Cardona, M., Kretschmer, T., & Strobel, T.IC T and productivity: conclusions from the empirical literature. Information Economics and policy, 2023, 25(3), 109-125. DOI: https://doi.org/10.1016/j.infoecopol.2012.12.002
Fernández-Portillo, A., Almodóvar-González, M., & Hernández-Mogollón, R. Impact of ICT development on economic growth. A study of OECD European union countries. Technology in Society, 2020, 63, 101420. https://doi.org/10.1016/j.techsoc.2020.101420
Hanclova, J., Doucek, P., Fischer, J., & Vltavska, K. Does ICT capital affect economic growth in the EU-15 and EU-12 countries?. Journal of business economics and management, 2015, 16(2), 387-406. DOI: https://doi.org/10.3846/16111699.2012.754375
Evangelista, R., Guerrieri, P., & Meliciani, V. The economic impact of digital technologies in Europe. Economics of Innovation and new technology, 2014, 23(8), 802-824. https://doi.org/10.1080/10438599.2014.918438
Peña‐Vinces, J. C., Cepeda‐Carrión, G., & Chin, W. W. Effect of ITC on the international competitiveness of firms. Management decision, 2012, 50(6), 1045-1061. https://doi.org/10.1108/00251741211238328
Fernández-Uclés, D., Elfkih, S., Mozas-Moral, A., Bernal-Jurado, E., Medina-Viruel, M. J., & Abdallah, S. B. Economic efficiency in the tunisian olive oil sector. Agriculture, 2020, 10(9), 391. https://doi.org/10.3390/agriculture10090391
Prochniak, M., Wasiak, K. The impact of the financial system on economic growth in the context of the global crisis: empirical evidence for the EU and OECD countries. Empirica 44, 295–337 (2017). DOI: https://doi.org/10.1007/s10663-016-9323-9
Lavery, S., & Schmid, D. European integration and the new global disorder. JCMS: Journal of Common Market Studies, 2021, 59(5), 1322–1338. DOI: https://doi.org/10.1111/jcms.13184
Lavery, S., McDaniel, S. and Schmid, D. Finance Fragmented? Frankfurt and Paris as European Financial Centres after Brexit. Journal of European Public Policy, 2019, Vol. 26, No. 10, pp. 1502–1520. https://doi.org/10.1080/13501763.2018.1534876
Мазур, Ю., Фротер, О., Длугоборська, Л., & Пархоменко, Л. Використання штучного інтелекту в галузях економіки (сільське господарство, промислове виробництво, переробка продукції). Наука і техніка сьогодні, 2023, (3 (17)). DOI: https://doi.org/10.52058/2786-6025-2023-3(17)-566-575
Ніжейко К. Практичні засади функціонування міжнародних стратегічних альянсів в ІТ-сфері. Інвестиції: практика та досвід. 2023. № 22. С. 147–153. DOI: https://doi.org/10.32702/2306-6814.2023.22.147
Підоричева, І. Ю. Науково-технологічне та інноваційне співробітництво між Україною та Європейським Союзом: перспективи і стратегічні напрями розвитку. Економіка України, 2022, (2), 50–74. https://doi.org/10.15407/economyukr.2022.02.050
Кавуненко, Л. П., Черногаєва, О. Г., & Вашуленко, О. С. Інтеграція України та країн СНД у європейський науковий простір: досвід участі у рамкових програмах ЄС. Наука, технології, інновації. 2019, № 2 (10). С. 54–66. DOI: https://doi.org/10.35668/2520-6524-2019-2-07
Shapoval A., Yakubovskiy S. The impact of specific factors on the revenue of the IT sectors in Poland and the Czech republic. Аctual Problems of International Relations. 2023. Т. 154. No. 1. С. 82–93. DOI: 10.17721/apmv.2023.1.154.82-93
McKinsey Global Surveys, 2021: A year in review URL: https://www.mckinsey.com/~/media/mckinsey/featured%20insights/mckinsey%20global%20surveys/mckinsey-global-surveys-2021-a-year-in-review.pdf
Duhinetsʹ H.V., Heneralov O.V. (2023) Metodolohichnyy kontent funktsionuvannya «idealʹnoho shtormu» v hlobalʹnomu vymiri. [Methodological content of the functioning of the "ideal storm" in the global dimension] Problemy ekonomiky. 2023. №3. C. 215–220. DOI: https://doi.org/10.32983/2222-0712-2023-3-215-220
Kwilinski, A., Lyulyov, O., & Pimonenko, T. (2023) The Impact of Digital Business on Energy Efficiency in EU Countries. Information, 14 (9), Article 480. DOI: https://doi.org/10.3390/info14090480
Szeles, M. R., & Simionescu, M. (2020) Regional patterns and drivers of the EU digital economy. Social Indicators Research, 150(1), 95–119. DOI: https://doi.org/10.1007/s11205-020-02287-x
Oloyede, A. A., Fark, N., Noma, N., Tebep, E., & Nwaulune, A. K. (2023) Measuring the impact of the digital economy in developing countries: A systematic review and meta-analysis. Heliyon. DOI: https://doi.org/10.1016/j.heliyon.2023.e17654
Nicoli, N., & Iosifidis, P. (2023) EU digital economy competition policy: From ex-post to ex-ante. The case of Alphabet, Amazon, Apple, and Meta. Global Media and China, 8(1), 24–38. DOI: https://doi.org/10.1177/20594364231152673
Lambach, D., & Monsees, L. (2024) Beyond sovereignty as authority: the multiplicity of European approaches to digital sovereignty. Global Political Economy (published online ahead of print 2024). DOI: https://doi.org/10.1332/26352257Y2024D000000007
Nordhaus, W.D. (2002) Productivity growth and the new economy. Brook. Pap. Econ. Act. 33, 211–26. URL: https://www.nber.org/papers/w8096
Cardona, M., Kretschmer, T., & Strobel, T. (2023) ICT and productivity: conclusions from the empirical literature. Information Economics and policy, 25(3), 109–125. DOI: https://doi.org/10.1016/j.infoecopol.2012.12.002
Fernández-Portillo, A., Almodóvar-González, M., & Hernández-Mogollón, R. (2020) Impact of ICT development on economic growth. A study of OECD European union countries. Technology in Society, 63, 101420. DOI: https://doi.org/10.1016/j.techsoc.2020.101420
Hanclova, J., Doucek, P., Fischer, J., & Vltavska, K. (2015) Does ICT capital affect economic growth in the EU-15 and EU-12 countries? Journal of business economics and management, 16(2), 387–406. DOI: https://doi.org/10.3846/16111699.2012.754375
Evangelista, R., Guerrieri, P., & Meliciani, V. (2014). The economic impact of digital technologies in Europe. Economics of Innovation and new technology, 23(8), 802–824. DOI: https://doi.org/10.1080/10438599.2014.918438
Peña‐Vinces, J. C., Cepeda‐Carrión, G., & Chin, W. W. (2012) Effect of ITC on the international competitiveness of firms. Management decision, 50(6), 1045–1061. DOI: https://doi.org/10.1108/00251741211238328
Fernández-Uclés, D., Elfkih, S., Mozas-Moral, A., Bernal-Jurado, E., Medina-Viruel, M. J., & Abdallah, S. B. (2020) Economic efficiency in the tunisian olive oil sector. Agriculture, 10(9), 391. DOI: https://doi.org/10.3390/agriculture10090391
Prochniak, M., Wasiak, K. (2017) The impact of the financial system on economic growth in the context of the global crisis: empirical evidence for the EU and OECD countries. Empirica 44, 295–337 DOI: https://doi.org/10.1007/s10663-016-9323-9
Lavery, S., & Schmid, D. (2021). European integration and the new global disorder. JCMS: Journal of Common Market Studies, 59(5), 1322–1338. DOI: https://doi.org/10.1111/jcms.13184
Lavery, S., McDaniel, S. and Schmid, D. (2019) Finance Fragmented? Frankfurt and Paris as European Financial Centres after Brexit. Journal of European Public Policy, Vol. 26, No. 10, pp. 1502–1520. DOI: https://doi.org/10.1080/13501763.2018.1534876
Mazur YU., Froter O., Dluhoborsʹka L., Parkhomenko L. (2023). Vykorystannya shtuchnoho intelektu v haluzyakh ekonomiky (silʹsʹke hospodarstvo, promyslove vyrobnytstvo, pererobka produktsiyi). [Use of artificial intelligence in economic sectors (agriculture, industrial production, product processing)] Nauka i tekhnika sʹohodni, (3 (17)). DOI: https://doi.org/10.52058/2786-6025-2023-3(17)-566-575
Nizheyko K. Praktychni zasady funktsionuvannya mizhnarodnykh stratehichnykh alʹyansiv v IT-sferi. [Practical principles of functioning of international strategic alliances in the IT sphere] Investytsiyi: praktyka ta dosvid. 2023. № 22. S. 147–153. DOI: https://doi.org/10.32702/2306-6814.2023.22.147
Pidorycheva I. (2022). Naukovo-tekhnolohichne ta innovatsiyne spivrobitnytstvo mizh Ukrayinoyu ta Yevropeysʹkym Soyuzom: perspektyvy i stratehichni napryamy rozvytku. [Scientific-technological and innovative cooperation between ukraine and the european union: perspectives and strategic directions of development]. Ekonomika Ukrayiny, (2), 50–74. DOI: https://doi.org/10.15407/economyukr.2022.02.050
Kavunenko L . P., Chernohayeva, O. H., & Vashulenko, O. S. (2019). Intehratsiya Ukrayiny ta krayin SND v yevropeysʹkyy naukovyy prostir: dosvid uchasti u ramkovykh prohramakh YES. [Integration of Ukraine and the CIS countries into the european scientific space: experience of participation in EU framework programs]. Nauka, tekhnolohiyi, innovatsiyi. № 2 (10). S. 54–66. DOI: https://doi.org/10.35668/2520-6524-2019-2-07
Shapoval A., Yakubovskiy S. (2023) The impact of specific factors on the revenue of the IT sectors in Poland and the Czech Republic. Аctual Problems of International Relations. Т. 154. No. 1. С. 82–93. DOI: 10.17721/apmv.2023.1.154.82-93
McKinsey Global Surveys, 2021: A year in review URL: https://www.mckinsey.com/~/media/mckinsey/featured%20insights/mckinsey%20global%20surveys/mckinsey-global-surveys-2021-a-year-in-review.pdf
This work is licensed under a Creative Commons Attribution 4.0 International License.
