Template-Type: ReDIF-Article 1.0

Author-Name: Szabolcs Szentmihalyi
Author-Workplace-Name: Magyar Nemzeti Bank
Author-Email: szentmihalyisz@mnb.hu


Title: Digitalisation and Convergence - The Example of Estonia

Abstract: Estonia achieved development while maintaining balance through comprehensive,
innovative competitiveness reforms, with significant economic convergence between
2010 and 2019. The development level of the Estonian economy rose from 64.2
per cent of the EU average to 82.3 per cent during this period, the second highest
change in the East-Central European region in the last decade. On the whole, the
room for manoeuvre for Estonian macroeconomic policies was very limited over the
past two decades as a result of the fixed exchange rate system and later introduction
of the euro. As a result, the growth path that ultimately led to rapid convergence
had to be pursued in the area of competitiveness and structural policies. Estonia
found the opportunity to break through in digitalisation and transformed itself
into the region's digital leader through symbolic gestures and practical steps, not
only leading to improvement in productivity but also contributing to the creation
of world-renowned companies.

Classification-JEL: 
Keywords:
Pages: 143-158
Volume: 22
Issue: 1
Year: 2023
File-URL: https://en-hitelintezetiszemle.mnb.hu/letoltes/fer-22-1-fa1-szentmihalyi.pdf
File-Format: Application/pdf
Handle: RePEc:mnb:finrev:v:22:y:2023:i:1:p:143-158