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<p>The Western Balkan (WB) region is at a turning point in its economic development as strategic infrastructure investments can drive major economic growth and integration with broader European markets. Studies highlight how important infrastructure is for stimulating economic growth, increasing connectivity, and boosting regional competitiveness. Given the high costs associated with traditional infrastructure projects, the Western Balkans must consider more cost-effective alternatives that offer significant economic and environmental benefits. Hence, focusing on energy and digital infrastructure presents a viable solution that directly aligns with the principles of circularity and regenerative economy, by promoting resource efficiency, decarbonization, and long-term resilience. This study assesses whether sustainable development in WB countries can be predicted using digital infrastructure indicators as a proxy for connectivity and identifies key drivers of sustainability outcomes. Applying a Gradient Boosted Trees (GBT) model to 2010–2023 data, we achieved high predictive accuracy (relative error &lt; 1%), with Secure Internet Servers (SIS) emerging as the dominant factor (27.8% global contribution) in both global and local analyses, underscoring digital infrastructure’s pivotal role in regenerating economies through knowledge-based and service-driven systems. Foreign Direct Investment (FDI) and Renewable Energy Consumption (REC) also significantly contribute (7.4% and 7.5%, respectively), emphasizing circular economy principles by highlighting investment in renewable, self-sustaining energy sources. Meanwhile, GDP per capita growth shows minimal impact, suggesting a shift from traditional growth indicators to regenerative value creation. These results suggest that digital infrastructure fosters high-skilled jobs, e-governance, and efficient public services - enhancing quality of life while enabling scalable solutions that support both connectivity and regenerative growth, compared to traditional infrastructure’s longer timelines.</p>

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Digital Infrastructure as the Catalyst for Sustainable Economic Development in the Western Balkans

  • 期刊论文

  • 发表日期：

    2025年8月22日

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  • Sunčica Vuković,
  • Milena Lipovina Božović,
  • Stevan Đurić,
  • Dženana Đurković,
  • Ljiljana Kašćelan

摘要

The Western Balkan (WB) region is at a turning point in its economic development as strategic infrastructure investments can drive major economic growth and integration with broader European markets. Studies highlight how important infrastructure is for stimulating economic growth, increasing connectivity, and boosting regional competitiveness. Given the high costs associated with traditional infrastructure projects, the Western Balkans must consider more cost-effective alternatives that offer significant economic and environmental benefits. Hence, focusing on energy and digital infrastructure presents a viable solution that directly aligns with the principles of circularity and regenerative economy, by promoting resource efficiency, decarbonization, and long-term resilience. This study assesses whether sustainable development in WB countries can be predicted using digital infrastructure indicators as a proxy for connectivity and identifies key drivers of sustainability outcomes. Applying a Gradient Boosted Trees (GBT) model to 2010–2023 data, we achieved high predictive accuracy (relative error < 1%), with Secure Internet Servers (SIS) emerging as the dominant factor (27.8% global contribution) in both global and local analyses, underscoring digital infrastructure’s pivotal role in regenerating economies through knowledge-based and service-driven systems. Foreign Direct Investment (FDI) and Renewable Energy Consumption (REC) also significantly contribute (7.4% and 7.5%, respectively), emphasizing circular economy principles by highlighting investment in renewable, self-sustaining energy sources. Meanwhile, GDP per capita growth shows minimal impact, suggesting a shift from traditional growth indicators to regenerative value creation. These results suggest that digital infrastructure fosters high-skilled jobs, e-governance, and efficient public services - enhancing quality of life while enabling scalable solutions that support both connectivity and regenerative growth, compared to traditional infrastructure’s longer timelines.