An analysis of the impact of digitalization on SMES' exports by sector: Empirical evidence from selected European countries

The primary purpose of this paper is to econometrically explore the impact of digitalization on the exports of small and medium-sized enterprises (SMEs) across seven European Union (EU) countries (Czechia, Germany, Greece, Hungary, Latvia, France, Poland, Romania) based on data covering the years 2012-2023.The Panel-Corrected Standard Errors (PCSE) with Fixed Effects (FE-M) approach is employed for this purpose.For robustness checks, Driscoll-Kraay Standard Errors (DKSE) with FE-M are applied.According to the findings, individual internet usage has a positive impact on the exports of the scientific and technical activities sector and the mining and quarrying sector.Furthermore, the employment of specialists in information and communication technology (ICT) positively affects the exports of the wholesale and retail trade sector and the mining and quarrying sector.Moreover, fixed broadband subscriptions affect the exports of both the information and communication sector and transportation and storage sector positively.However, the exports of the scientific and technical activities sector are negatively influenced by fixed broadband subscriptions.