Conference Paper 10: The impact of digital transformation on informal sector integration and SDG progress in the EUROMED region

FEMConfPaper10-2024 | June 2025

Title

« Conference Paper 10: The impact of digital transformation on informal sector integration and SDG progress in the EUROMED region »

By

Ceyhun Elgin, Professor of Economics at the American University in Bulgaria and Bogazici University, Turkey

Contributeurs

Note :

This paper was submitted and accepted for presentation at the FEMISE 2024 Annual Conference, “The Euromed Partnership as a Catalyst for SDGs: Advancing Value Chains, Climate Action, Digital Transformation, and Youth Empowerment,” Cairo, Egypt, 10-12 December 2024. The paper was evaluated and peer reviewed by experts, whose contributions are greatly appreciated. The revised version was accepted for publication under the FEMISE Conference Paper series. The opinions and content of this document are the sole responsibility of the authors and can under no circumstances be regarded as reflecting the position of the FEMISE, the IEMed or the AECID.

Summary :

Abstract

This paper explores the intersection of digital transformation, informal sector integration, and sustainable development in the Euromed region, encompassing EU member states and Southern Mediterranean countries. It examines how digital technologies, such as mobile payment systems and e-commerce platforms, facilitate informal sector formalization and contribute to achieving Sustainable Development Goals (SDGs), particularly Goals 8, 9, and 10. The research employs a mixed-methods approach, including quantitative analysis of panel data and qualitative case studies of Spain, Morocco, and Egypt. Findings reveal that digital adoption significantly reduces informal sector size, especially in countries with strong institutional support and intermediate digital readiness. However, barriers such as digital literacy gaps and regulatory challenges persist, necessitating targeted policy interventions. The study provides actionable insights for enhancing digital infrastructure, promoting financial inclusion, and fostering regional cooperation, contributing to a nuanced understanding of how digital transformation can advance inclusive economic development.

Keywords: Digital Transformation; Informal Sector Integration; Sustainable Development Goals; Euromed Region

Download the Conference paper here