Digitalization of Ukraine’s economy as a factor in strengthening regional development resilience

Abstract

Digitalization is now considered as necessary for strengthening development and resilience of any nation. The present study examined the role of digitalization in regional economic resilience in Ukraine in the scenario of disruption and displacement. The study utilized comparative cross-regional dataset. The analysis evaluated variations in digital infrastructure and business-facing e-services in various regions of Ukraine.  It also examined other factor than can help in recovery and enhancing resilience. Those factors included SME continuity, employment stability and logistics restoration. Quantitative tables summarized differences in the availability and uptake of e-services for permitting, taxation, reporting and supply-chain coordination. Further, the qualitative interviews with regional administrators and firm representatives provided evidence of operational mechanisms. The first and most notable finding is the very strong positive correlation (r = 0.87, p < 0.01) between the Digitalization Index and the Resilience Index; between E-service uptake and Firm continuity (r = 0.82, p < 0.01). The strong positive correlation confirmed that digitalization intensity was closely associated with post-shock economic recovery at the regional level. The findings indicated those regions with higher levels of digital readiness and specially those offering comprehensive online business registration, reporting and logistics platforms demonstrated faster recovery of enterprise activity and more stable supply flows. However, the areas with limited digital access or low administrative capacity faced longer recovery times and greater firm attrition. The results suggest that digitalization is needed for the structural resilience and it helps in enabling administrative continuity and business reactivation without physical presence.