Scientific Bulletin of Mukachevo State University. Series “Economics”

Vol. 12, No. 1, 2025 26.03.2025 open access Open access

Assessment of the digital transformation of Ukraine’s economy: Challenges, opportunities, and strategic prospects

Tetiana Shcherban, Volodymyr Hoblyk, Tetiana Chernychko, Vasyl Pigosh, Iryna Kozyk

DOI https://doi.org/10.52566/msu-econ1.2025.159 Pages 159 –168 Views 3,264 Views

Abstract

The digital transformation of Ukraine’s economy enhances efficiency, competitiveness, and modernisation across key sectors by optimising business processes, developing infrastructure and e-governance, and fostering digital skills among the population. This study aimed to develop a comprehensive system for the digital transformation of Ukraine’s economy, considering contemporary challenges, opportunities, and the necessary mechanisms for managing this process. The research methodology was based on an analysis of international experience in implementing digital technologies, an assessment of the economic benefits of digitalisation, and an examination of the impact of technology on the efficiency of public administration and business. The study also included a review of current trends in the digital economy and an assessment of their applicability in Ukraine. The key findings of the study confirmed that the digital transformation of Ukraine’s economy creates new opportunities for economic growth, increased productivity, and enhanced competitiveness. The transition to a digital economy in Ukraine should focus on establishing conditions for the development of innovative sectors, reducing dependence on raw material exports, and increasing the added value of products. This priority has been emphasised in the process of developing the national digital transformation strategy, which should include the expansion of digital infrastructure, support for innovative technologies, and the implementation of new digital services in public administration and business. Particular attention has been given to cybersecurity and personal data protection amid the rapid advancement of digital solutions. The practical significance of the study lies in the application of its findings to the development of national digitalisation strategies, which will contribute to economic growth and Ukraine’s integration into the global digital economy

Keywords

digital technologies, economic modernisation, e-governance, business innovation, digital infrastructure, cybersecurity, digital skills

References

[1] Al-Aloosy, K.F.Q., Mirvalad, S., & Shabakhty N. (2024). Evaluating the impact of internet communication quality in human resource management on the productivity of construction projectsHeliyon, 10, article number e28500.

[2] Beerepoot, N., & Lambregts, B. (2015). Competition in online job marketplaces. Global Networks, 15(2), 236-255. doi: 10.1111/glob.12051.

[3] Bondarenko, S., Makeieva, O., Usachenko, O., Veklych V., Arifkhodzhaieva T., & Lernyk, S. (2022). The legal mechanisms for information security in the context of digitalization. Journal of Information Technology Management, 14(Special Issue), 25-58. doi: 10.22059/jitm.2022.88868.

[4] Buzhymska, K.O., & Zhelikhovska, M.V. (2021). Modern trends and models of entrepreneurship development in the conditions of the digital economy. Entrepreneurship and Trade, 28, 15-19. doi: 10.36477/2522-1256-2021-28-02.

[5] Gumennykova, T., Pryimak, V., Myroshnychenko, N., & Bazyl, O. (2023). Analysis of trends in pedagogy and psychology: Implementation of globalization solutions. Futurity Education, 3(2), 55-78. doi: 10.57125/FED.2023.06.25.04.

[6] Dahlman, C., Mealy, S., & Wermelinger, M. (2016). Harnessing the digital economy for developing countries. OECD Development Centre Working Papers, No. 334.  doi: 10.1787/4adffb24-en.

[7] Digital Economy and Society Index (DESI) 2022. (2022). Retrieved from https://ec.europa.eu/newsroom/dae/redirection/document/887 66

[8] Dutta, S., Lanvin, B., Rivera, L., & Wunsch-Vincent, S. (2023). Global Innovation Index 2023. Innovation in the face of uncertainty (16th ed.). Geneva: World Intellectual Property Organization.

[9] E-Government Development Index. (n.d.). Country data. Retrieved from https://publicadministration.un.org/egovkb/Data-Center.

[10] European Commisson. (2022). The Digital Economy and Society Index (DESI). Retrieved from https://digital-strategy.ec.europa.eu/en/policies/desi.

[11] European Commisson. (2024). Shaping Europe’s digital future. Retrieved from https://digital-strategy.ec.europa.eu/en.

[12] Gal, P., Nicoletti, G., Von Rüden, C., & Sorbe, S. (2019). Digitalization and productivity: In search of the holy grail – firm-level empirical evidence from European countriesInternational Productivity Monitor, 37, 39-71.

[13] Gurzhiy, N., Nazarova, S., & Vasylina, O. (2024). Digital economy and its impact on changing consumer habits and market strategies: Digital transformations and institutional contextAcademic Visions, 30.

[14] Haltiwanger, J., & Jarmin, R.S. (2000). Measuring the digital economy. Swetland: U.S. Bureau of the Census.

[15] Heeks, R. (2017). Information and communication technology for development. London: Routledge.

[16] International Monetary Fund. (2024). World economic outlook database. Retrieved from https://www.imf.org/en/Publications/SPROLLs/world-economic-outlook-databases#sort=%40imfdate%20descending.

[17] Khaustova, M. (2023). The concept of digitalization: National and international approaches. Law and Innovations, 2(38), 7-18. doi: 10.37772/2518-1718-2022-2(38)-1.

[18] Mesenbourg, T.L. (2001). Measuring the digital economy. Retrieved from https://www.census.gov/content/dam/Census/library/working-papers/2001/econ/digitalecon.pdf.

[19] Ministry of Digital Transformation. (2021). Digital literacy of the population of Ukraine. Retrieved from https://osvita.diia.gov.ua/uploads/0/2625-doslidzenna_2021_ukr.pdf.

[20] Ministry of Digital Transformation. (2023). Digital literacy survey in Ukraine. Retrieved from https://osvita.diia.gov.ua/uploads/1/8800-ua_cifrova_gramotnist_naselenna_ukraini_2023.pdf.

[21] Munandar, D., Winantia, M.B., Narimawati, U. (2024). Effect of digital optimization strategy and communication on employee performance. Integrated Journal of Business and Economics, 8(2), 218-230. doi: 10.33019/ijbe.v8i2.856.

[22] Olczyk, M., Kuc-Czarnecka, M., & Saltelli, A. (2022). Changes in the Global Competitiveness Index 4.0 methodology: The Improved approach of competitiveness benchmarking. Journal of Competitiveness, 14(1), 118-135. doi: 10.7441/joc.2022.01.07.

[23] Overchuk, V., Afanasieva, N., & Kovalova, O. (2024). Formation of health-saving competencies as a personal resource in conditions of prolonged traumatization. Multidisciplinary Research Journal, 6(4), article number 2024054. doi: 10.31893/multiscience.2024054.

[24] Quinones, G., Nicholson, B., & Heeks, R. (2015). A Literature review of E-entrepreneurship in emerging economies: Positioning research on Latin American digital startups. In R.L. La Rovere, L. de M. Ozório & L. de J. Melo (Eds.), Entrepreneurship in BRICS (pp. 179-208). Cham: Springer. doi: 10.1007/978-3-319-11412-5_11.

[25] Skliar, T. (2021). Ethical standards for digital technology use in social work practice. Social Work and Education, 8(1), 42-51. doi: 10.25128/2520-6230.21.1.3.

[26] State Statistics Service of Ukraine. (2022a). Use of information and communication technologies in enterprises: Use of the Internet, social media, cloud computing services in 2022. Retrieved from https://www.ukrstat.gov.ua/operativ/operativ2021/zv/ikt/vikpt_18-22.xlsx.

[27] State Statistics Service of Ukraine. (2022a). Use of information and communication technologies in enterprises: E-commerce in 2022. Retrieved from: https://www.ukrstat.gov.ua/operativ/operativ2021/zv/ikt/vikpt_3D_18-22.xlsx.

[28] State Statistics Service of Ukraine. (n.d.a). Information society. Retrieved from https://www.ukrstat.gov.ua/operativ/menu/menu_u/zv.htm.

[29] State Statistics Service of Ukraine. (n.d.b). Science, technology, and innovation. Retrieved from https://www.ukrstat.gov.ua/operativ/menu/menu_u/ni.htm.

[30] Stone, D.L., Deadrick, D.L., Lukaszewski, K.M., & Johnson R. (2015). The influence of technology on the future of human resource managementHuman Resource Management Review, 25, 216-231.

[31] Tantawi, K., Fidan, I., Huseynov, O., Musa, Ya., & Tantawy, A. (2024). Advances in industry 4.0: From intelligentization to the industrial metaverse. International Journal on Interactive Design and Manufacturingdoi: 10.1007/s12008-024-01750-0.

[32] van Ark, B. (2016). The productivity paradox of the new digital economyInternational Productivity Monitor, 31, 3-18.

[33] World Bank. (n.d.). World bank open data. Retrieved from https://data.worldbank.org/.

[34] World Digital Competitiveness Ranking. (2024). Retrieved from https://www.imd.org/centers/wcc/world-competitiveness-center/rankings/world-digital-competitiveness-ranking/.

[35] Zavyalova, E., & Sokolov, D. (2022). The digitalization of human resource management: Present and future. Foresight and STI Governance, 16(2), 42-51. doi: 10.17323/2500-2597.2022.2.42.51.

Suggested citation

Shcherban, T., Hoblyk, V., Chernychko, T., Pigosh, V., & Kozyk, I. (2025). Assessment of the digital transformation of Ukraine’s economy: Challenges, opportunities, and strategic prospects. Scientific Bulletin of Mukachevo State University. Series “Economics”, 12(1), 159-168. https://doi.org/10.52566/msu-econ1.2025.159