Key Factors Influencing the Development of the Digital Economy in Ukraine

ABSTRACT: This study investigates the key factors influencing the development of Ukraine’s digital economy. By analyzing data from 2015 to 2023, including internet penetration, digital literacy, foreign direct investment, and government IT spending, the paper applies econometric methods to identify which variables most significantly affect digital economic growth. Results indicate that digital literacy and internet penetration have the strongest positive impact, followed by foreign investment and governmental support.[1] The findings highlight the critical need for policy focus on education and infrastructure to sustain digital transformation. Recommendations for policymakers include expanding digital education programs, enhancing broadband access, and improving the investment environment. Limitations and directions for future research are also discussed.