nep-ict New Economics Papers
on Information and Communication Technologies
Issue of 2015‒12‒28
six papers chosen by
Walter Frisch
Universität Wien

  1. Empirical studies on the impact of ICT usage on employment in Europe By Federico Biagi; Martin Falk
  2. The macro-economic impact of e-commerce in the EU Digital Single Market By Melisande Cardona; Nestor Duch-Brown; Joseph Francois; Bertin Martens; Fan Yang
  3. fixed broadband connections and economic growth: a dynamic oecd panel analysis By Angelo Castaldo; Alessandro Fiorini; Bernardo Maggi
  4. The Impact of Online Sales on Consumers and Firms: Evidence from Household Appliances By Nestor Duch-Brown; Lukasz Grzybowski; Frank Verboven
  5. Consumer perceptions of cross-border e-commerce in the EU By Melisande Cardona; Nestor Duch-Brown; Bertin Martens
  6. E-Skills, Brains And Performance Of The Firms: ICT And Ability Of Firms To Conduct Successful Projects In Luxembourg By Anissa Chaibi; Adel Ben Youssef; Leila Peltier-Ben Aoun

  1. By: Federico Biagi (European Commission – JRC - IPTS); Martin Falk (Austrian Institute of Economic Research (WIFO))
    Abstract: This report has three sections and a key feature of our empirical analysis is the use of several types of advanced ICT activities such as enterprise resource planning systems, mobile internet access and e-commerce practices. The first section presents new empirical evidence regarding the impact of ICT/E-commerce activities on industry performance in Europe measured as employment and labour productivity growth. The data consists of multi-country industry level data for 14 European countries for the period 2002-2010. The main result of this section is that the increase in ICT/e-commerce activities over time has not lead to a decline in jobs. This holds true for both manufacturing and service industries. In contrast, the different types of ICT activities are significantly related to labour productivity. However, the sign and significance of the relationships vary across different types of ICT activities and also vary over time with lower magnitude for the more recent period. The second section looks at the relationship between several indicators of ICT usage and digitalisation, and the relative demand for highly skilled workers. The data is based on two-digit industry data for seven European countries for the period 2002-2010. For manufacturing industries, our estimates show that broadband connected employees, diffusion of mobile internet, use of enterprise resource planning systems and electronic invoicing are all significantly positively related to the industries’ skill intensity. For service industries only mobile internet usage is significant. These estimates indicate that the increase in ERP systems during the period studied accounts for 25% of the increase in the share of workers with a tertiary degree across manufacturing industries and countries. The results are robust with respect to the estimation method and when accounting for endogeneity of ICT. The third section investigates the relationship between technological and organisational innovations, and ICT usage/e-commerce and internet technologies. The data is based on disaggregated data by firm size/industry for 12 European countries for the period 2002-2010. The empirical results show that the sales share of new market products is significantly positively related with both the percentage of workers with mobile internet access and e-procurement activities. Sharing electronic data also contributes to product innovations. We also find that organisational change and enterprise resource planning
    Keywords: Labour Demand, Technological Change, ICT, employment
    JEL: J23 J24 O33 L86
    Date: 2015
  2. By: Melisande Cardona (European Commission - JRC - IPTS); Nestor Duch-Brown (European Commission - JRC - IPTS); Joseph Francois (World Trade Institute); Bertin Martens (European Commission – JRC - IPTS); Fan Yang (Hohenheim University)
    Abstract: This paper examines the economic impact of a change in retail technology - the shift from offline to online shopping – and a change in policy – measures to reduce the barriers to online trade perceived by consumers and retailers. Contrary to the prevalent micro-economic partial equilibrium consumer modelling approach to e-commerce, we use a macro-economic general equilibrium model that brings together the impact on consumers as well as on producers. We use survey data on cross-border e-commerce between EU Member States to estimate the implied cross-border trade cost reduction when consumers move from offline to online consumption as well as the implied costs of perceived regulatory barriers to e-commerce. We distinguish between cross-border and domestic trade costs effects. We find that cross-bordere-commerce reduces trade costs compared to offline trade. Increased price competition squeezes domestic retail price margins and has a negative output effect in that sector (-2.6%). However, the resulting retail efficiency gains have a positive effect on production in other sectors (between 0.9 and 2.6%) and on household consumption (+1.07%). The combined macro-economic effect of these transmission channels adds 0.14% to EU GDP. Additional policy measures to facilitate cross-border e-commerce between EU Member States could add another 0.3% to household consumption and 0.04% to GDP, or 0.03% in the more conservative estimate. The relatively weak GDP effect in comparison with the production and consumption effects indicates that the shift from offline to online retail induces considerable welfare redistribution from retailing to other sectors and to households, more so than a production effect.
    Keywords: e-commerce, online trade, cross-border trade, international online trade, trade costs, trade barriers
    JEL: F14 F47
    Date: 2015–09
  3. By: Angelo Castaldo; Alessandro Fiorini; Bernardo Maggi (Università Sapienza di Roma - Dipartimento di Studi Giuridici, Filosofici ed Economici)
    Abstract: Technological innovation is viewed as a major stimulus for economic growth. High-speed internet access via broadband infrastructure has been experiencing a prompt development since the end of 90s, thanks to the deployment of both fix and mobile technologies. The present study investigates on the behavior of broadband diffusion as a technological determinant of economic growth in the main OECD countries. The estimations performed allowed to control and interpret the time evolution of the phenomenon according to the achievable target of growth, as resulting from the promotion of broadband internet connections. Our main goal is to provide evidence of a relevant - in quantitative term - relation between broadband diffusion and economic dynamics in the short, medium and long run.
    Keywords: Fixed broadband access, economic growth, technology diffusion, dynamic panel
    JEL: L96 O47 O33 H54
    Date: 2015–12
  4. By: Nestor Duch-Brown (European Commission - JRC - IPTS); Lukasz Grzybowski (Telecom Paris Tech); Frank Verboven (Katholieke Universiteit Leuven)
    Abstract: In this paper, we estimate a differentiated products demand model to ask three questions regarding the introduction of e-commerce. First, we ask whether the online distribution channel has increased total sales, or only diverted sales from traditional channels. We find that there is some market expansion effect but also a considerable sales diversion. Second, we ask who benefited most from online sales: consumers or firms. We find that consumers benefited more, which is entirely due to the appearance of an additional distribution channel and not due to increased competition. Third, we ask how the online channel has affected European market integration. We find that international price differences for identical products are larger in the traditional channel than online. However, there is still substantial market segmentation in the online channel between the EU countries. The introduction of e-commerce therefore did not influence price levels and price dispersion in the traditional channel.
    Keywords: e-commerce, online sales, substitution, consumer welfare, nested logit
    JEL: L13 L68 L86
    Date: 2015
  5. By: Melisande Cardona (European Commission - JRC - IPTS); Nestor Duch-Brown (European Commission - JRC - IPTS); Bertin Martens (European Commission – JRC - IPTS)
    Abstract: This report presents empirical evidence about the obstacles that European consumers face when trying to buy online goods and services in other EU Member States. It relies on data from a consumer survey carried out in February-March 2015 in the EU28. By comparing named websites with respondents’ answers on the location of web shops, we find that 77% correctly assess whether a website is located domestically or in a foreign country. We also find that survey results are biased because cross-border purchases are under-reported. In addition, the report finds that prices, variety and transaction costs are strong drivers to shift consumer purchases of goods from offline to online shops, as predicted by economic theory. Consumers’ perceptions of risk still hold them back from online transactions, which leaves some margin for policy makers to improve the regulatory and institutional setting. The results are less conclusive for online access to digital media content and for shifting online purchases from domestic to foreign markets.
    JEL: D12
    Date: 2015–06
  6. By: Anissa Chaibi (IPAG Business School, Paris - GREDEG - Groupe de Recherche en Droit, Economie et Gestion - UNS - Université Nice Sophia Antipolis - CNRS - Centre National de la Recherche Scientifique); Adel Ben Youssef (GREDEG - Groupe de Recherche en Droit, Economie et Gestion - UNS - Université Nice Sophia Antipolis - CNRS - Centre National de la Recherche Scientifique); Leila Peltier-Ben Aoun (GREDEG - Groupe de Recherche en Droit, Economie et Gestion - UNS - Université Nice Sophia Antipolis - CNRS - Centre National de la Recherche Scientifique)
    Abstract: This paper provides original empirical evidence on the causal links between e-skills, usage of Information and Communication Technologies (ICT) and firm's performance using a sample of Luxembourgian manufacturing and services firms. Firm performance is measured in terms of innovation (success of new projects settled). Our main findings are: (i) there's no relationship between the absorptive technology capacity of the firm (measured by ICT staff and Training) and the probability of the implementation of successful ICT projects, (ii) there is a positive effect of e-applications usage (ICT usage) on the probability of the implementation of successful new projects, and (iii) there is an asymmetric effect of usage of e-commerce and e-administration confirming findings of the recent literature
    Keywords: Innovative projects,Ordered models,Innovation,Usage of ICT,Depth of ICT adoption
    Date: 2015–05–01

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