nep-ict New Economics Papers
on Information and Communication Technologies
Issue of 2020‒01‒13
six papers chosen by
Marek Giebel
Universität Dortmund

  1. Determinants of Fixed broadband diffusion: An International Study By Pachis, Athanasios
  2. How Does ICT investment affect Employment and Productivity? Evidence from a Japanese Tax Incentive (Japanese) By TAKIZAWA Miho; MIYAKAWA Daisuke
  3. Visualizing the Evolving Fit of Education and Economy: The Case of ICT Education in Norway By Marco Capasso; Michael Spjelkavik Mark
  4. DECLINING BUSINESS DYNAMISM By Gert Bijnens; Joep Konings
  5. The electronics industry in Indonesia and its integration into global supply chains By Raj-Reichert, Gale.
  6. Will robots automate your job away? Full employment, basic income, and economic democracy By McGaughey, Ewan

  1. By: Pachis, Athanasios
    Abstract: Broadband diffusion has long been recognized as an important driver of economic growth. This study attempts to identify the relevant factors that influence broadband uptake. Contrary to most relevant studies, it utilizes a worldwide sample.This allows to take into account differences on how these factors affect broadband diffusion between countries that exhibit significant variations, in terms of their developmental level. Except other factors, that have been previously identified by previous studies, this study highlights the importance of the development of e-services in inciting broadband diffusion. Finally, we find evidence that there are differences in the relevance of factors such as liberalization or the development of e-services, between countries with disparate income levels, in driving broadband.
    Keywords: telecommunications,broadband diffusion,regulation, developed and developing countries
    JEL: L51 L96
    Date: 2018–07–25
  2. By: TAKIZAWA Miho; MIYAKAWA Daisuke
    Abstract: In this paper, we estimate the causal link between the implementation of information and communication technology (ICT) investments and firm employment and productivity. The empirical results obtained from the instrument variable estimation using the two governmental compulsory surveys and exogenous tax shocks possibly affecting firm ICT investment suggest, first, that increases in ICT investment did not decrease the number of firm-level employees. Second, in fact, the increase in ICT investment positively affected the share of in-house ICT-related employees. Third, we observed a limited causal link between ICT investment and firm productivity over a short term. These results jointly suggest that the increase in ICT investment, which was possibly encouraged by the tax reform, led to the reallocation of in-house employees from jobs not closely connected with ICT to ICT-related jobs in short periods.
    Date: 2019–12
  3. By: Marco Capasso; Michael Spjelkavik Mark
    Abstract: Our study suggests a pattern of methodological steps aimed at an efficient visualization of the fit between an education and an economy. The steps help to detect cross-sectoral skills, originating in a given education path, and to connect them to the evolution of the labour market. Our procedure utilizes statistics derived from labour flows and builds upon the recent scientific literature on skill-relatedness. As an empirical application, we analyse the fit of ICT higher education with the Norwegian economy, using data on intersectoral labour flows (years 2009–2017). Our procedure is then used to analyze the Norwegian job market for ICT-educated people, suggesting the existence of cross-sectoral ICT skill-relatedness which could explain the ongoing dynamics. With the methodological steps we identify sectors linked to the “ICT-sector†as being a skill hub, but also find links to public sector, suggesting the public sector being attractive to ICT-educated people, and links to other skill-related communities containing higher education and R&D as well as data analysis and processing. Finally, the methodology identifies skill-related communities, such as finance and offshore, which are isolated, in terms of skill-relatedness, from the rest of the economy and appear to be islands in the Norwegian economy.
    Keywords: Labour flows, Skill relatedness, Economic Complexity, Capabilities, Industrial dynamics
    JEL: D85 I21 J21 J24 J62
    Date: 2020–01
  4. By: Gert Bijnens; Joep Konings
    Abstract: We build on Decker et al. (2016) who show that business dynamism and entrepreneurship in the U.S. have declined over recent decades and that the characteristics of this decline changed around 2000. Since 2000 the U.S. decline in dynamism has been accompanied by a decline in high-growth, young firms. Using 30 years of data from all for-profit firms incorporated in Belgium, we now offer evidence that Belgium, a far more rigid economy than the U.S., experienced a similar decline in dynamism. Furthermore, the decline set in around 2000 as well. We attribute this not only to the declining share of young firms that become high-growth firms, but more importantly also to the declining propensity for small (not necessarily young) firms to experience fast growth. We do not yet know what caused this decline. Since there are remarkable similarities between Belgium and the U.S. with respect to the secular decline in business dynamism, global trends rather than country specific changes are most likely to be at the basis of this evolution. A possible global trend causing dynamism to decline, is the ICT revolution that started the second half of the ’90s. We find preliminary indications that industries with higher ICT intensity have experienced a dynamism trend change during that same period and show a steeper dynamism decline.
    Date: 2018–01
  5. By: Raj-Reichert, Gale.
    Abstract: Fuelled by outsourcing and offshoring, the electronics industry has become one of the most globally fragmented production systems, with extensive and complex global supply chains. Production of electronics in Indonesia began in the 1980s, when large brands and multinational enterprises established operations in the country. This report describes the history of the electronics industry in Indonesia, its structure, and its integration into global supply chains. Relevant public governance and private compliance initiatives that key stakeholders are pursuing to advance decent work are discussed. The report also identifies challenges and opportunities for the development of Indonesia’s electronics industry while ensuring decent work. This research report is the outcome of the second component of an ILO development cooperation project entitled “The Future of Work in Information and Communication Technology (ICT)”. It further contributes to the implementation of the ILO programme of action on Decent Work in Global Supply Chains established in 2017.
    Date: 2019
  6. By: McGaughey, Ewan (King's College, London)
    Abstract: Will the internet, robotics and artificial intelligence mean a ‘jobless future’? A recent narrative, endorsed by prominent tech-billionaires, says we face mass unemployment, and we need a basic income. In contrast, this article shows why the law can achieve full employment with fair incomes, and holidays with pay. Universal human rights, including the right to ‘share in scientific advancement and its benefits’, set the proper guiding principles. Three distinct views of the causes of unemployment are that it is a ‘natural’ phenomenon, that technology may propel it, or that it is social and legal choice: to let capital owners restrict investment in jobs. Only the third view has any credible evidence to support it. Technology may create redundancies, but unemployment is an entirely social phenomenon. After World War Two, 42% of UK jobs were redundant but social policy maintained full employment, and it can be done again. This said, transition to new technology, when markets are left alone, can be exceedingly slow: a staggering 88% of American horses lost their jobs after the Model T Ford, but only over 45 years. Taking lessons from history, it is clear that unemployment is driven by inequality of wealth and of votes in the economy. To uphold human rights, governments should reprogramme the law, for full employment, fair incomes and reduced working time, on a living planet. Robot owners will not automate your job away, if we defend economic democracy.
    Date: 2019–10–15

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