THE DYNAMICS OF DIGITAL TRANSFORMATION: REGIONAL TRENDS AND THEIR INTERCONNECTIONS 2025EBM24ЗБОРНИЦИ

Digital transformation is considered as an important force for economic development in times of structural changes in regions emerging ‘out of the fringes’ and integration into global markets. This paper views the dynamics of digital transformation: regional trends and their interconnections through the example of Serbia, Georgia, and Moldova. The analysis has established major thematic areas highlighting the development of digital infrastructure, the role of innovation in economic modernization, as well as the integration of digital strategies into the public and private sectors.The research closely examines the relationship between Internet connectivity and economic growth in the countries under study. For this purpose, such indicators as the level of broadband penetration, and GDP growth rates. The research findings reveal a significant association between Internet connectivity and economic performance improvements in various sectors, such as digital services, technology-driven industries, and e-commerce. Such findings only confirm the transformative potential that digitalization has in achieving economic resilience as well as innovation. This paper adds to the existing academic literature on digital transformation, by providing empirical evidence of how digital connectivity influences economic growth. This emphasizes the necessity of strategic investment in digital infrastructure and the formulation of policy frames to address regional disparities and attain and enhance sustainable development. The paper’s conclusions will be significant for policymakers and other concerned stakeholders intent on realizing the potential for economic progress and regional integration through the proper application of digital transformation.