nep-ict New Economics Papers
on Information and Communication Technologies
Issue of 2010‒11‒27
four papers chosen by
Walter Frisch
University Vienna

  1. The Causal Relationship between Information and Communication Technology and Foreign Direct Investment By Roghieh Gholami; Almas Heshmati; Sang-Yong Tom Lee
  2. Mediating effects of broadband consumers’ behavior in India By G, Thiagarajan; Nakkeeran, Senthilkumar; Arockiasamy, Arulraj
  3. Horizontal Mergers of Online Firms: Structural Estimation and Competitive Effects By Yonghong An; Michael R Baye; Yingyao Hu; John Morgan
  4. Multilateralising Regionalism: The Case of E-Commerce By Lior Herman

  1. By: Roghieh Gholami; Almas Heshmati; Sang-Yong Tom Lee
    Abstract: This paper investigates the simultaneous causal relationship between investments in information and communication technology (ICT) and foreign direct investment (FDI), with reference to its implications on economic growth. For the empirical analysis we use data from 23 major countries with heterogeneous economics development for the period 1976–99. [Discussion Paper No. 2003/30]
    Keywords: foreign direct investment, FDI, information and communication technology, ICT, stationarity, co-integration, causality
    Date: 2010
  2. By: G, Thiagarajan; Nakkeeran, Senthilkumar; Arockiasamy, Arulraj
    Abstract: Internet usage is rapidly growing in areas like cosmopolitan cities, semi-urban cities in India. I-enabled services offered by various government agencies, educational institutions and commercial activities force users of these services to seek superior internet access like broadband, WiMax is likely to replace traditional broadband and dial-up access soon. Interestingly, reforms in telecom sector are taking place at a rapid pace in India. Many private players started internet services affecting monopolistic public sector telecoms. The advent of private ISPs, the consumer behavior and brand choice of broadband consumers are witnessing dynamic shift in favor of private players. Cost competitiveness, transparency, paradigm shift in consumer responsiveness etc weigh in favor of Public Sector telecoms. This paper attempts to identify the factors affecting broadband consumer behavior. Further, paper studies the causes and effects, mediating effects of consumer behavior and conceptualizes a model to capture these effects. The results suggest that adoption of broadband service is playing a mediatory role in consumer satisfaction.
    Keywords: Broadband; Adoption; Normative constructs; mediating
    JEL: M31 M30 M39
    Date: 2010–07–01
  3. By: Yonghong An (Johns Hopkins University); Michael R Baye (Department of Business Economics and Public Policy, Indiana University Kelley School of Business); Yingyao Hu (Johns Hopkins University); John Morgan (University of California - Berkeley)
    Abstract: This paper (1) presents a general model of online price competition, (2) shows how to structurally estimate the underlying parameters of the model when the number of competing firms is unknown or in dispute, (3) estimates these parameters based on UK data for personal digital assistants, and (4) uses these estimates to simulate the competitive effects of horizontal mergers. Our results suggest that competitive effects in this online market are more closely aligned with the simple homogeneous product Bertrand model than might be expected given the observed price dispersion and number of firms. Our estimates indicate that so long as two firms remain in the market post merger, the average transaction price is roughly unaffected by horizontal mergers. However, there are potential distributional effects; our estimates indicate that a three-to-two merger raises the average transaction price paid by price sensitive "shoppers" by 2.88 percent, while lowering the average transaction price paid by consumers "loyal" to a particular firm by 1.37 percent.
    JEL: L0
    Date: 2010–07
  4. By: Lior Herman
    Abstract: This study analyses the extent to which e-commerce provisions in existing RTAs can be multilateralised. E-commerce has been recognised as an important engine for growth and development, yet WTO negotiations in this area have yielded very little progress so far. Against the backdrop of WTO stalemate, an increasing number of RTAs adopted specific provisions and rules for e-commerce. While these provisions increase the tradability of e-commerce, they also risk the creation of an e-commerce spaghetti bowl that will undermine the prospects for future WTO consensus in this area. This study considers two broad approaches for multilateralisation of RTA provisions. First, it suggests bottom-up multilateralisation extending RTAs e-commerce undertakings and provisions to a larger number of trading partners. Second, it proposes top-down multilateralisation which can advance e-commerce provisions, commitments and common learning at the WTO level. Both approaches to multilateralisation emphasise the importance of common definitions, rule-making and extension of bilateral liberalisation undertakings. The study highlights that despite the proliferation of e-commerce provisions in RTAs, many commonalities exist thus increasing the possibility of multilateral convergence.
    Keywords: e-commerce, political economy, WTO, regional trade agreements, multilateralisation
    JEL: F13 F14 F15 F50
    Date: 2010–06–28

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