nep-ict New Economics Papers
on Information and Communication Technologies
Issue of 2021‒07‒12
ten papers chosen by
Marek Giebel
Universität Dortmund

  1. Technological Change and Domestic Outsourcing By Antonin Bergeaud; Clément Malgouyres; Clément Mazet-Sonilhac; Sara Signorelli
  2. The nexus between domestic investment and economic growth in G7 countries; Does internet matter? By Bakari, Sayef
  3. Information theoretic causality detection between financial and sentiment data By Scaramozzino, Roberta; Cerchiello, Paola; Aste, Tomaso
  4. Epidemic Exposure, Fintech Adoption, and the Digital Divide By Saka, Orkun; Eichengreen, Barry; Aksoy, Cevat Giray
  5. The impact of IoT and 3D printing on job quality and work organisation: a snapshot from Spain By Rafael Grande; Alberto Vallejo-Peña; Cesira Urzi Brancati
  6. Labor-saving technological change? Sectoral evidence for Germany By Ferschli, Benjamin; Rehm, Miriam; Schnetzer, Matthias; Zilian, Stella
  7. Working from home during COVID-19 and beyond: Survey evidence from employers By Erdsiek, Daniel
  8. Technologies for adapting to climate change: A case study of Korean cities and implications for Latin American cities By Kim, Hyejung
  9. Distrust or speculation? the socioeconomic drivers of U.S. cryptocurrency investments By Raphael Auer; David Tercero-Lucas
  10. East Asia and East Africa: Different Ways to Digitalize Payments By Qing Xu

  1. By: Antonin Bergeaud (Banque de France - Banque de France - Banque de France); Clément Malgouyres (IPP - Institut des politiques publiques, PSE - Paris School of Economics - ENPC - École des Ponts ParisTech - ENS Paris - École normale supérieure - Paris - PSL - Université Paris sciences et lettres - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique - EHESS - École des hautes études en sciences sociales - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement, PJSE - Paris Jourdan Sciences Economiques - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS Paris - École normale supérieure - Paris - PSL - Université Paris sciences et lettres - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); Clément Mazet-Sonilhac (Banque de France - Banque de France - Banque de France, Institut d'Études Politiques [IEP] - Paris); Sara Signorelli (UvA - University of Amsterdam [Amsterdam])
    Abstract: Domestic outsourcing has grown substantially in developed countries over the past two decades. This paper addresses the question of the technological drivers of this phenomenon by studying the impact of the staggered diffusion of broadband internet in France during the 2000s. Our results confirm that broadband technology increases firm productivity and the relative demand for high-skill workers. Further, we show that broadband internet led firms to outsource some non-core occupations to service contractors, both in the low and high-skill segments. In both cases, we find that employment related to these occupations became increasingly concentrated in firms specializing in these activities, and was less likely to be performed in-house within firms specialized in other activities. As a result, after the arrival of broadband internet, establishments become increasingly homogeneous in their occupational composition. Finally, we provide suggestive evidence that high-skill workers experience salary gains from being outsourced, while low-skill workers lose out.
    Keywords: Broadband,Firm organization,Labor market,Outsourcing
    Date: 2021–06
  2. By: Bakari, Sayef
    Abstract: We examine the effect of the Internet on the relationship between domestic investment and economic growth. Data for G7 countries over the period 1991–2018 are used for panel data analysis. Empirical analaysis prove that domestic investment affect positively on economic growth, however the internet dont has any effect on economic growth. Also, the effect of domestic investment on economic growth proves to be not affected by the Internet.
    Keywords: Domestic Investment, Economic Growth, Internet, G7 Countries, Panel Data Analysis
    JEL: O31 O32 O38 O47 O5
    Date: 2021
  3. By: Scaramozzino, Roberta; Cerchiello, Paola; Aste, Tomaso
    Abstract: The interaction between the flow of sentiment expressed on blogs and media and the dynamics of the stock market prices are analyzed through an information-theoretic measure, the transfer entropy, to quantify causality relations. We analyzed daily stock price and daily social media sentiment for the top 50 companies in the Standard & Poor (S&P) index during the period from November 2018 to November 2020. We also analyzed news mentioning these companies during the same period. We found that there is a causal flux of information that links those companies. The largest fraction of significant causal links is between prices and between sentiments, but there is also significant causal information which goes both ways from sentiment to prices and from prices to sentiment. We observe that the strongest causal signal between sentiment and prices is associated with the Tech sector.
    Keywords: information theory; textual analysis; transfer entropy; financial news; causality; time series; ES/K002309/1; EP/P031730/1; H2020-ICT-2018-2 825215
    JEL: F3 G3 C1
    Date: 2021–05–16
  4. By: Saka, Orkun; Eichengreen, Barry; Aksoy, Cevat Giray
    Abstract: We ask whether epidemic exposure leads to a shift in financial technology usage within and across countries and if so who participates in this shift. We exploit a dataset combining Gallup World Polls and Global Findex surveys for some 250,000 individuals in 140 countries, merging them with information on the incidence of epidemics and local 3G internet infrastructure. Epidemic exposure is associated with an increase in remote-access (online/mobile) banking and substitution from bank branch-based to ATM-based activity. Using a machine-learning algorithm, we show that heterogeneity in this response centers on the age, income and employment of respondents. Young, high-income earners in full-time employment have the greatest propensity to shift to online/mobile transactions in response to epidemics. These effects are larger for individuals in subnational regions with better ex ante 3G signal coverage, highlighting the role of the digital divide in adaption to new technologies necessitated by adverse external shocks.
    Date: 2021–07–02
  5. By: Rafael Grande (University of Malaga); Alberto Vallejo-Peña (University of Malaga); Cesira Urzi Brancati (European Commission - JRC)
    Abstract: This paper analyses how the introduction of advanced digital technologies affected the business model, work organisation, and job quality in selected establishments in Spain. The focus is on two technologies: 3D printing and Internet of things (IoT). Two case studies were carried out in Spain: TTI-Algeciras (stowage and logistic port container terminal) and Airbus (manufacture of aerospace and defence equipment). A qualitative research methodology through semi-structured interviews was implemented. The results show the selected digital technologies has a positive impact on the busi-ness model of TTI-Algeciras and Airbus, either by increasing efficiency and competitiveness, or by improving work organisation. The main findings in terms of job quality, are: improvements in the physical environment resulting from a reduction in occupational hazards: the upskilling of the work-force, due to the need of new technical skills; the increase in worker responsibility and autonomy to the detriment of routine tasks; and, on the negative side, an intensification of work that is now de-termined by the technology. The analysis also shows the importance of communication and new ways of organising teamwork as a crucial factor for the successful introduction of digital technolo-gies in both companies. Finally, the consequences of the restrictive measures against Covid-19 during 2020 have favoured an acceleration of technological change in the workplace.
    Keywords: 3D printing; Internet of Things (IoT); digitisation; digitalisation; digital technologies; future of work
    Date: 2021–06
  6. By: Ferschli, Benjamin; Rehm, Miriam; Schnetzer, Matthias; Zilian, Stella
    Abstract: This paper investigates the links between digitalization, market concentration, and labor productivity at the sectoral level in Germany. Combining data for digitalization and labor productivity from the EU KLEMS database with firm-level data from the CompNet and Orbis Bureau Van Dijk databases to construct market concentration measures between 2000 to 2015, we show that (1) the German economy appears to have digitized since 2000, and (2) there is no clear-cut relationship between digitalization and market concentration at the sectoral and descriptive level. Using a time and sector fixed effects model, however, we find evidence for (3) a positive relationship of productivity to both market concentration and digitalization at the sectoral level in Germany. This finding is robust to alternative measures of digitalization and market concentration, but sensitive to the sector sample. We therefore cautiously conclude that recent technological change appears to have been labor-saving, and that productivity-enhancing "superstar firm" effects seem to exist in Germany.
    Date: 2021
  7. By: Erdsiek, Daniel
    Abstract: Based on survey responses from more than 1,700 managers in Germany, this study elicits employers' perceptions of working from home during COVID-19 and their long-term expectations for the time after the pandemic. Based on employers' forecasts of the share of employees working from home post-COVID, the within-firm intensity of the expected shift is quantified. Many firms expect a persistent shift towards working from home induced by the COVID-19 pandemic. Larger firms and firms with pre-COVID use of working from home are most likely to expect a persistent and intensive shift. As the empirical results indicate, underlying mechanisms for the expected shift might include learning effects facilitating an improved perception of working from home, investments in physical and human capital, a general push in firms' digital progress, and the fact that most firms do not observe a reduction in productivity due to working from home during COVID-19.
    Keywords: COVID-19,working from home,digitalisation,firm-level,managers,survey
    JEL: D22 D23 L22 O33 M54
    Date: 2021
  8. By: Kim, Hyejung
    Abstract: This document presents the climate adaptation technologies applied in cities in the Republic of Korea and their implications for Latin American cities. This case study sets forth the implications to be considered when Latin American cities use technologies as part of efforts to adapt to climate change. Firstly, national and local institutional environments need to be reformed by aligning them with national and regional climate-related policies as well as international initiatives. Secondly, since cities are where adaptation challenges must be faced, support for local governments needs to be enhanced by encouraging them to experiment with new adaptation technologies and transfer them to other cities. Finally, digitalization is one of the essential conditions for enabling adaptation technologies to work effectively.
    Date: 2021–06–29
  9. By: Raphael Auer; David Tercero-Lucas
    Abstract: Employing representative data from the U.S. Survey of Consumer Payment Choice, we disprove the hypothesis that cryptocurrency investors are motivatedby distrust in fiat currencies or regulated finance. Compared with the general population, investors show no differences in their level of security concerns with either cash or commercial banking services. We find that cryptocurrency investors tend to be educated, young and digital natives. In recent years, a gap in ownership of cryptocurrencies across genders has emerged. We examine how investor characteristics vary across cryptocurrencies and show that owners of cryptocurrencies increasingly tend to hold their investment for longer periods.
    Keywords: digital currencies, cryptocurrencies, distributed ledger technology, blockchain, payments, digitalisation, banking, household finance, money, bitcoin, ether, xrp, bitcoin cash, litecoin, stellar, eos
    JEL: D14 D91 E42 G11 G12 G28 O33
    Date: 2021–07
  10. By: Qing Xu (Université Côte d'Azur, France; GREDEG CNRS)
    Abstract: Financial digitalization leads to the global payment revolution. M-payment is one of the essential digital payment methods that increase the efficiency of financial and economic activities, especially for developing countries. This chapter presents different development paths and adoption models of m-payment in East Asia & East Africa. China and South Korea are examples of third-party platform-led mobile payment models; Japan is an example of a bank-based mobile payment model; while East African countries implemented originally a mobile operator-led model and then moved toward a hybrid model with more banks and mobile operators involvement. It presents finally some concluding remarks and reflections on other world regions.
    Keywords: digitalize payments, mobile payment, mobile payment operational models, East Asia, East Africa
    JEL: E42 E44 G23
    Date: 2021–06

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