nep-ict New Economics Papers
on Information and Communication Technologies
Issue of 2016‒01‒18
seven papers chosen by
Walter Frisch
Universität Wien

  1. The Impact of Information and Communication Technology Adoption on Multinational Firm Boundary Decisions By Wenjie Chen; Fariha Kamal
  3. Identifying Key Drivers and Bottlenecks in the Adoption of E-Book Readers in Korea By Dongnyok Shim; Jin Gyo Kim; Jorn Altmann
  4. Does it matter how much time students spend on line outside of school? By OECD
  5. Predicting US bank failures with internet search volume data By Florian Schaffner
  6. The Information Industry: Measuring Russia By International Standards By Gulnara I. Abdrakhmanova; Galina G. Kovaleva; Natalia V. Bulchenko
  7. ICT for Financial Inclusion: Mobile Money and the Financial Behavior of Rural Households in Uganda By Ggombe Kasim Munyegera; Tomoya Matsumoto

  1. By: Wenjie Chen; Fariha Kamal
    Abstract: This paper evaluates the effect of adopting internet-enabled information and communication technology (ICT) adoption on the decision to reorganize production across national borders (foreign boundary decision) by multinational enterprises (MNE). Using a transaction cost framework, we argue that ICT adoption influences foreign boundary decisions by lowering coordination costs both internally and externally for the firm. We propose that the heterogeneity in the technology’s characteristics, namely complexity and the production processes’ degree of codifiability, moderate this influence. Using a difference-in-differences methodology and exploiting the richness of confidential U.S. Census Bureau microdata, we find that overall ICT adoption is positively associated with greater likelihood of in-house production, as measured by increases in intra-firm trade shares. Furthermore, we find that more complex forms of ICT are associated with larger increases in intra-firm trade shares. Finally, our results indicate that MNEs in industries in which production specifications are more easily codified in an electronic format are less likely to engage in intra-firm relative to arms-length trade following ICT adoption.
    Date: 2016–01
  2. By: Makhkamov Bakhtiyor Shukhratovich
    Abstract: In article the role and value of information and communication technologies in Uzbekistan, as engine of all economy, investments promoting attraction to the country, to creation of new workplaces, introduction of progressive technologies in production and management, that is finally – to the stable economic growth and increase of a standard of living are researched. Questions of formation and development of National information system which main objectives is development of telecommunication technologies, networks and infrastructure of communication, creation of information systems of automation of activity of government bodies and the centralized databases in the republic are also considered. Key words: information and communication technologies (ICT), legislative base of ICT, National information system
    Date: 2015–12
  3. By: Dongnyok Shim (College of Engineering, Seoul National University); Jin Gyo Kim (Graduate school of Business, Seoul National University); Jorn Altmann (College of Engineering, Seoul National University)
    Abstract: This study seeks to describe the dynamic effects of innovation characteristics and consumer innovativeness as conditioned by consumer decision making in the Korean E-book reader market. Dedicated Korean E-book readers have received little research attention over the last few years, as consumers’ interest in E-book readers has not been as high as was expected. This study identifies the barriers and bottlenecks impacting Korean consumers’ adoption of dedicated E-book readers based on the theories of innovation adoption and consumer behavior. Our estimation results indicate that complexity was the main bottleneck blocking the adoption of dedicated E-book readers in every decision-making stage (cognitive-affective-behavioral), whereas observability was the driver stimulating adoption in every stage. Moreover, the relative advantage of dedicated E-book readers is significant only in the affective stage, while compatibility is meaningful only in the behavioral stage. The results of this study provide useful guidelines to help marketers and engineers design dedicated e-book readers and promote them in Korea.
    Keywords: : Innovation Adoption Theory, Hierarchy of Effects Model, Innovativeness, Multivariate Probit Model, E-Book Reader, South Korea.
    JEL: C11 C31 C83 D12 D85 O32 O33 M31 M37
    Date: 2016–01
  4. By: OECD
    Abstract: In 2012, 15-year-old students spent over two hours on line each day, on average across OECD countries. The most common online activities among 15-year-olds were browsing the Internet for fun and participating in social networks, with over 70% of students doing one of these every day or almost every day. Students who spent more than six hours per day on line outside of school were more likely to feel lonely at school, arrive late and perform at lower levels in mathematics. On average across OECD countries, 7% of students spend this much time on line during a typical weekday.
    Date: 2016–01–12
  5. By: Florian Schaffner
    Abstract: This study investigates how well weekly Google search volumes track and predict bank failures in the United States between 2007 and 2012, contributing to the expanding literature that exploits internet data for the prediction of events. Different duration models with time-varying covariates are estimated. Higher Google search volumes go hand in hand with higher failure rates, and the coefficients for the Google volume growth index are highly significant. However, Google’s predictive power quickly dissipates for future failure rates.
    Keywords: Bank failures, internet, financial crisis, Google, survival analysis
    JEL: G17 G18 G19 G21 G28
    Date: 2015–12
  6. By: Gulnara I. Abdrakhmanova (National Research University Higher School of Economics); Galina G. Kovaleva (National Research University Higher School of Economics); Natalia V. Bulchenko (Ministry of Telecom and Mass Communications of the Russian Federation)
    Abstract: Structural changes influenced by ICT are having an impact on production processes and the release of products in the information and communication technology (ICT) sphere and content (on the level of individual enterprises) and are resulting in the pursuit of new approaches to socio-economic development, to increase the competitiveness of the country and to participate in the international division of labour. In order to identify development priorities and prospects in the information industry we therefore need a clear understanding of what the information industry is, what its boundaries are, what forms of economic activity make up this economic segment, and which products form the corresponding market. This working paper summarizes the results of a study to ‘measure’ the information industry as a segment of the economy producing goods and services linked to ICT and content. Methodological approaches are proposed to establish the ‘Information industry’ definitions based on the Russian Classification of Economic Activities (OKVED) and the Russian Classification of Products by Economic Activities (OKPD) in line with international standards and recommendations by the Organization for Economic Cooperation and Development (OECD). Key indicators of the development of the information industry are also tentatively calculated for Russia and compared with countries abroad. The content of this paper is based on research results commissioned by the Ministry of Telecom and Mass Communications of the Russian Federation and the outcome of evaluations and testing at a round table on the subject ‘IT industry: problems of classification and application’ round table (2014) and a session of the statistics section of the Central House of Scientists at the Russian Academy of Sciences on the subject of ‘Developing the “Information industry” and “IT industry” definitions based on the OKVED2 and OKPD2’ ( The paper was also supported by the Basic Research Program at the National Research University Higher School of Economics (HSE) and the subsidy granted to the HSE by the Government of the Russian Federation for the implementation of the Global Competitiveness Program.
    Keywords: Content and Media sector, ICT sector, information and communication technology (ICT), information industry
    JEL: C1 C5 C83 L63 L81 L82 L86 L96 M2 O14
    Date: 2015
  7. By: Ggombe Kasim Munyegera (National Graduate Institute for Policy Studies); Tomoya Matsumoto (National Graduate Institute for Policy Studies)
    Abstract: Over 35 percent of the adult use mobile money services in 2014, just five years since its inception in Uganda. Using household survey data covering 820 rural households, we examine the effect of this financial innovation on their financial behavior. We find that adopting mobile money services significantly increases the likelihood of saving, borrowing and receiving remittances due to reduction in transaction cost. The amount of savings, credit and remittances is also significantly higher among user households than non-users. To illustrate the importance of service proximity, we show that reducing the distance to the nearest mobile money agent boosts the frequency of using mobile money services. Our results are robust to specification changes and alternative explanations.
    Date: 2015–12

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