nep-ict New Economics Papers
on Information and Communication Technologies
Issue of 2017‒01‒01
six papers chosen by
Walter Frisch
Universität Wien

  1. Not all that Glitters is Gold: ICT and Inclusive Human Development in Sub-Saharan Africa By Simplice Asongu; Jacinta C. Nwachukwu
  2. Social Media Use and Children’s Wellbeing By Emily McDool; Phillip Powell; Jennifer Roberts; Karl Taylor
  3. Macro-geographic location and internet adoption in poor countries: What is behind the persistent digital gap? By Dohse, Dirk; Lim, Cheng Yee
  4. The Effects of Computers on Children’s Social Development and School Participation: Evidence from a Randomized Control Experiment By Robert W. Fairlie; Ariel Kalil
  5. Digitalization and Collective Value Creation By Isaksson, Darja; Wennberg, Karl
  6. Cities and the Structure of Social Interactions: Evidence from Mobile Phone Data By Konstantin Büchel und Maximilian von Ehrlich

  1. By: Simplice Asongu (Yaoundé/Cameroun); Jacinta C. Nwachukwu (Coventry University, UK)
    Abstract: This paper examines the short and long term effects of information and communication technology (ICT) on inclusive human development in a panel of 49 Sub-Saharan African countries for the period 2000-2012. ICT is measured in terms of mobile phone penetration, internet penetration and telephone penetration rates. While mobile phone penetration has positive short run and long term effects on inclusive human development, the effects of internet and telephone penetrations are insignificant. Moreover, the long term inclusive human development benefits of the mobile phone are higher than the corresponding short term rewards. Policy implications are discussed.
    Keywords: ICT; inclusive human development; Africa
    JEL: G20 I10 I32 O40 O55
    Date: 2016–12
    URL: http://d.repec.org/n?u=RePEc:agd:wpaper:16/051&r=ict
  2. By: Emily McDool (Department of Economics, University of Sheffield); Phillip Powell (Department of Economics, University of Sheffield); Jennifer Roberts (Department of Economics, University of Sheffield); Karl Taylor (Department of Economics, University of Sheffield)
    Abstract: Childhood circumstances and behaviours have been shown to have important persistent effects in later life. One aspect of childhood that has changed dramatically in the past decade, and is causing concern among policy makers and other bodies responsible for safeguarding children, is the advent of social media, or online social networking. This research explores the effect of children’s digital social networking on their subjective wellbeing. We use a large representative sample of 10-15 year olds over the period 2010 to 2014 from the UK Household Longitudinal Study, and estimate the effect of time spent chatting on social websites on a number of outcomes which reflect how these children feel about different aspects of their life, specifically: school work; appearance; family; friends; school attended; and life as a whole. We deal with the potential endogeneity of social networking via an instrumental variables approach using information on broadband speeds and mobile phone signal strength published by Ofcom. Our results suggest that spending more time on social networks reduces the satisfaction that children feel with all aspects of their lives, except for their friendships; and that girls suffer more adverse effects than boys. As well as addressing policy makers’ concerns about the effects of digital technology on children, this work also contributes to wider debates about the socioeconomic consequences of the internet and digital technologies more generally, a debate which to date has largely been based on evidence from outside of the UK.
    Keywords: digital society, social media, wellbeing, children
    JEL: D60 I31 J13
    Date: 2016–12
    URL: http://d.repec.org/n?u=RePEc:shf:wpaper:2016011&r=ict
  3. By: Dohse, Dirk; Lim, Cheng Yee
    Abstract: The paper investigates the determinants of Internet adoption in poor countries, focusing on the role of macro-geographic location (neighborhood). It is argued that neighboring countries are interconnected by various kinds of spillovers, including knowledge spillovers as well as spillovers of norms and attitudes that affect individual adoption behavior. The empirical findings support the view that Internet adoption is affected by adoption rates in neighboring countries, even when controlling for a wide range of covariates. Addressing potential endogeneity concerns using an instrumental variables approach moreover suggests these relationships to be causal. The findings imply that international policies to support Internet adoption in poor countries might be more effective if they target groups of neighboring countries rather than single countries in order to better exploit spillovers between neighboring countries.
    Keywords: internet adoption,poor countries,macro-geographic location,spillovers
    JEL: O30 L96 R10
    Date: 2016
    URL: http://d.repec.org/n?u=RePEc:zbw:ifwkwp:2067&r=ict
  4. By: Robert W. Fairlie; Ariel Kalil
    Abstract: Concerns over the perceived negative impacts of computers on social development among children are prevalent but largely uninformed by plausibly causal evidence. We provide the first test of this hypothesis using a large-scale randomized control experiment in which more than one thousand children attending grades 6-10 across 15 different schools and 5 school districts in California were randomly given computers to use at home. Children in the treatment group are more likely to report having a social networking site, but also report spending more time communicating with their friends and interacting with their friends in person. There is no evidence that computer ownership displaces participation in after-school activities such as sports teams or clubs or reduces school participation and engagement.
    JEL: I20
    Date: 2016–12
    URL: http://d.repec.org/n?u=RePEc:nbr:nberwo:22907&r=ict
  5. By: Isaksson, Darja (Future transparent); Wennberg, Karl (The Ratio Institute and Linköping University)
    Abstract: We discuss the spread and impact of digitalization as a disruptive technological change. We show how digitalization is intimately connected to globalization by first, being dependent on globalization for its impact, and second, enhancing the speed of globalization. Digitalization lowers barriers to funding, marketing, sales and distribution, and enables an increasing global flow of goods, services, and financial transactions. We discuss how digitalization also contributes to changing consumer habits and a blurring line between producers and consumers where the latter now have capabilities to build collective knowledge by they themselves becoming producers. Digital platforms are emerging, aggregating data and providing new business models where contact costs are approaching zero. These platforms wield strong economic power and the algorithms by which they operate also change incentives and transaction costs for producers and consumers. We sketch the patterns by which industries digitialize as being characterized by one or a few ‘platforms’ dominating a global market, but where such platforms also facilitate the emergence of more narrow niche businesses and products and allow new types of micro-multinationals to reach out to a larger global crowd and satisfy latent demand. These changes have already happened in media and music, and the principles seen in these industries can be seen as emerging in other sectors. We conclude by highlighting the potential of digitalization to enhance the value of collective goods. We particularly highlight the cases of health care and the energy, and discuss how digital technologies can contribute to collective value creation in these areas.
    Keywords: Entrepreneurship
    JEL: L26
    Date: 2016–12–22
    URL: http://d.repec.org/n?u=RePEc:hhs:ratioi:0283&r=ict
  6. By: Konstantin Büchel und Maximilian von Ehrlich
    Abstract: Social interactions are considered pivotal to urban agglomeration forces. This study employs a unique dataset on mobile phone calls to examine how social interactions differ across cities and peripheral areas. We first show that geographical distance is highly detrimental to interpersonal exchange. We then reveal that individuals residing in high-density locations do not benefit from larger social networks, but from a more efficient structure in terms of higher matching quality and lower clustering. These results are derived from two complementary approaches: Based on a link Formation model, we examine how geographical distance, network overlap, and sociodemographic (dis)similarities impact the likelihood that two agents interact. We further decompose the effects from individual, location, and time specific determinants on micro-level network measures by exploiting information on mobile phone users who change their place of residence.
    Keywords: Social Interactions; Agglomeration Externalities; Network Analysis; Sorting
    JEL: R1 R23 Z13 D85
    Date: 2016–12
    URL: http://d.repec.org/n?u=RePEc:ube:dpvwib:dp1608&r=ict

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