Industry 4.0
Vol. 10 (2025), Issue 6, pg(s) 228-229

BUSINESS & “INDUSTRY 4.0”

Digitalization as a catalyst of productivity: evidence from eu export performance

  • 1 Bratislava University of Economics and Business

Abstract

This article examines how labor productivity and digital adoption influence the export performance of European economies in the context of Industry 4.0. Building on Porter’s view of productivity as a key source of competitiveness, we test whether digitalization strengthens its effect on exports. Using an unbalanced EU panel for 2014–2024, the analysis combines World Bank trade indicators, ILO productivity data, and an EU digitalization index. Two-way fixed-effects regressions control for country heterogeneity and time shocks. The results show that income levels and market size support export performance, while productivity alone is not significant. After including digitalization, productivity becomes a significant driver, and the productivity–digitalization interaction is positive and highly significant. This implies that digitalization does not directly raise exports but amplifies the export-enhancing effect of productivity, highlighting the complementary role of digital capabilities in improving trade competitiveness in the era of Industry 4.0.

Keywords

References

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