nep-ict New Economics Papers
on Information and Communication Technologies
Issue of 2021‒07‒26
twelve papers chosen by
Marek Giebel
Universität Dortmund

  1. Filipinos' Access and Exposure to ICT: A General Overview based on the National ICT Household Survey By Tabuga, Aubrey D.; Cabaero, Carlos C.
  2. Adoption of digital and ICT technologies and firms’ productivity By Zoran Aralica; Bruno Skrinjaric
  3. Technological Change and Domestic Outsourcing By Antonin Bergeaud; Clément Malgouyres; Clément Mazet-Sonilhac; Sara Signorelli
  4. Explaining Caste-based Digital Divide in India By R Vaidehi; A Bheemeshwar Reddy; Sudatta Banerjee
  5. Emerging Tax Issues in the Digital Economy By Cuenca, Janet S.
  6. Epidemic Exposure, Fintech Adoption, and the Digital Divide By Orkun Saka; Barry Eichengreen; Cevat Giray Aksoy
  7. Sharing tips for rice, chicken and vegetable production: Do voice messages and social learning complement extension services? By Almanzar, Miguel; de Brauw, Alan; Nakasone, Eduardo
  8. Of Access and Inclusivity Digital Divide in Online Education By Bheemeshwar Reddy A; Sunny Jose; Vaidehi R
  9. Bridging connectivity divides By OECD
  10. Strategies to manage the risks faced by consumers in developing e-commerce By Kiran Javaria; Omar Masood; Fernando Garcia
  11. Digital technology and productivity of informal enterprises: Empirical evidence from Nigeria By Michael Danquah; Solomon Owusu
  12. Digitalization of MSMEs as the Key to Economic Recovery during the Pandemic By Melani, Olivia Erisa

  1. By: Tabuga, Aubrey D.; Cabaero, Carlos C.
    Abstract: Information and communications technology (ICT) has been considered a basic necessity in the digital world. It is noted that it permeates all aspects of life as it provides better and quicker ways for people to learn, interact, and gain access to information. In the Philippines, the 2019 National ICT Household Survey marked the first effort by the government to map the general ICT landscape in the country which examined, among others, the use of cellular phones and computers and the extent of internet usage and online financial transactions. This survey was administered to a nationally representative sample of households and individuals in the country. This paper provides a general overview of ICT use based solely on this survey. The findings show that there is differentiated access to ICT across subnational regions. There also remains a nonnegligible proportion of individuals who do not have access to ICT partly due to lack of infrastructure. There is also much to improve in terms of using ICT for economic purposes, such as acquiring skills, doing online financial transactions, and conducting business. Comments to this paper are welcome within 60 days from date of posting. Email
    Keywords: Philippines, information and communications technology, ICT, online work, e-entrepreneurship, NICTHS, National ICT Household Survey
    Date: 2021
  2. By: Zoran Aralica (The Institute of Economics, Zagreb); Bruno Skrinjaric (The Institute of Economics, Zagreb)
    Abstract: This paper has two main goals. First, it aims to answer the question on how the usage of ICT and digital technologies affects firm productivity. Second, it aims to analyze how change in the share of the manufacturing sector and/or the service sector in a given region direct changes in firm productivity. The analysis was carried out using a financial dataset of Croatian enterprises in the period from 2009 to 2019 and Eurostats’ Digital Economy and Society data, based on “Community survey on ICT usage and ecommerce in enterprises”. The data were analyzed using principal component analysis and panel data methods. The results indicate a positive relationship between adoption of ICT technologies and firm productivity, and a negative correlation between adoption of digital technologies and firm productivity. Furthermore, the results show a high degree of deindustrialization of certain regions and a positive correlation between industry intensity in certain regions and firm productivity. Finally, there seems to be a positive premium on productivity for larger-sized firms, firms participating in international trade, companies situated near to key international markets (i.e., located in counties bordering with the City of Zagreb).
    Keywords: ICT, digital technologies, economy structure, productivity, Croatia
    JEL: O14 O33
    Date: 2021–04
  3. 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
  4. By: R Vaidehi; A Bheemeshwar Reddy; Sudatta Banerjee
    Abstract: With the increasing importance of information and communication technologies in access to basic services like education and health, the question of the digital divide based on caste assumes importance in India where large socioeconomic disparities persist between different caste groups. Studies on caste-based digital inequality are still scanty in India. Using nationally representative survey data, this paper analyzes the first-level digital divide (ownership of computer and access to the internet) and the second-level digital divide (individual's skill to use computer and the internet) between the disadvantaged caste group and the others. Further, this paper identifies the caste group-based differences in socioeconomic factors that contribute to the digital divide between these groups using a non-linear decomposition method. The results show that there exists a large first-level and second-level digital divide between the disadvantaged caste groups and others in India. The non-linear decomposition results indicate that the caste-based digital divide in India is rooted in historical socioeconomic deprivation of disadvantaged caste groups. More than half of the caste-based digital gap is attributable to differences in educational attainment and income between the disadvantaged caste groups and others. The findings of this study highlight the urgent need for addressing educational and income inequality between the different caste groups in India in order to bridge the digital divide.
    Date: 2021–06
  5. By: Cuenca, Janet S.
    Abstract: The issues and challenges in taxation in the digital economy stem from the complex and multifaceted nature of the digital economy. Reaching a common understanding and measurement of its size and impact is critical in devising a tax regime for the digital economy. In APEC Secretariat (2019), the Philippines identified the major barriers and challenges (i.e., scoping and measurement of the digital economy, the regulatory and legal framework--including sandboxes and digital infrastructure gap) to implementing structural reforms relating to the digital economy. It also identified the major policy gaps in terms of its regulatory and legal framework, competition policy, internet infrastructure improvements, and consumer education on digital economy. The opportunities and challenges that the digital economy brings are particularly important for developing countries, including the Philippines. Thus, it is deemed critical for the Philippine government to eliminate the barriers and challenges and address the identified policy gaps to fully reap the benefits from the digital economy. Also, the need for development strategies cannot be overemphasized. This paper argues that development strategies should first focus on developing domestic digital capacities. <p>Comments to this paper are welcome within 60 days from date of posting. Email
    Keywords: taxation, ICT, Digital Economy, information and communication technology, e-commerce, platform economy, digitalized economy, electronic commerce, digital tax, base erosion and profit shiftin, BEPS ?
    Date: 2021
  6. By: Orkun Saka; Barry Eichengreen; Cevat Giray Aksoy
    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.
    Keywords: epidemics, fintech, banking
    JEL: G20 G59 I10
    Date: 2021
  7. By: Almanzar, Miguel; de Brauw, Alan; Nakasone, Eduardo
    Abstract: Considerable resources are allocated to agricultural extension around the world, with questionable cost effectiveness. An obvious question is whether information and communication technologies can be used to push agricultural extension messages effectively at a lower cost. Based on a clustered randomized control trial, we evaluate a pilot in which farmers receive information about agricultural production on rice, vegetables, and chicken rearing via mobile phone voice messages. Our experimental design included groups of households without and with farmer group membership. We evaluate whether farmers received the information, learned it, shared it with non-recipients, and used it, and how the effects of the information campaign on these outcomes changes with being part of an existing farmer group and the proportion of the village population receiving information. We find farmers in the information treatment groups were more knowledgeable about the practices promoted, believe it helped them produce more, and shared it with others. The information campaign was more effective for rice and to a lesser extent chicken rearing than for vegetables. We do not find differential effects by farmer group membership. We find that the amount of information sent to the village increases information diffusion but the speed of sharing the information is similar across treatment groups and by different saturation rates. We conclude that targeted and simple information campaigns can help supplement the information needs of farmers in a cost-effective manner, independently of their participation in farmer groups or extension programs.
    Keywords: CAMBODIA; SOUTH EAST ASIA; ASIA; rice; poultry; chickens; vegetables; food production; agricultural extension; technology; networks; information transfer; agricultural production; technology adoption
    Date: 2021
  8. By: Bheemeshwar Reddy A; Sunny Jose; Vaidehi R
    Abstract: Can online education enable all students to participate in and benefit from it equally? Massive online education without addressing the huge access gap and disparities in digital infrastructure would not only exclude a vast majority of students from learning opportunities but also exacerbate the existing socio-economic disparities in educational opportunities.
    Date: 2021–07
  9. By: OECD
    Abstract: As countries weather the COVID-19 health emergency, high-quality connectivity, more than ever, is essential to ensure that economic activities can continue in a remote manner. However, important disparities in terms of connectivity persist, aggravating the consequences of the health emergency. Therefore, policies aiming to reduce connectivity divides are of paramount importance. This report explores policies and regulations in OECD countries that have proven successful to work towards closing connectivity divides. It offers a roadmap to policy makers on the overarching policies and regulatory measures to expand connectivity, as well as the tailored approaches to extend broadband networks in rural and remote areas.
    Date: 2021–07–20
  10. By: Kiran Javaria (University of Lahore); Omar Masood (University of Lahore); Fernando Garcia (Polytechnic University of Valencia)
    Abstract: The study investigates the management of risk in E-Commerce and what different barriers are faced by consumers during an uncertain and risky situation. The study utilizes both primary and secondary data in order to get reliable results. There are different risk factors that affect the purchasing behaviour of consumers who shop online. The consumer's perception of risk may be the result of all the emotional processes through which consumers recognize, organize and provide meaning to sensations received, such as the need for product quality, safety online and overall satisfaction. The primary data consists of a survey of online shoppers. The research data and questionnaire was administered to 972 internet users who are classed as experienced and avid users. The secondary data includes an analysis of the various theories of consumer behaviour, models of online adoption, risk factors to marketing and shopping online, models of the adoption of innovation and new ways of marketing and trade. Both techniques are utilized that would examine the relationship between perceived risk strategies and customer satisfaction as well as examined the customer involvement and propensity to take risk on existing relation of online shopping.
    Keywords: E-commerce,risk management,financial manager,perceived risk strategies,customer satisfaction,customer involvement,propensity to take risk
    Date: 2020–12–30
  11. By: Michael Danquah; Solomon Owusu
    Abstract: The lingering policy dilemma facing many governments in sub-Saharan Africa in recent years is what can be done in the short to medium term to boost the output and incomes of individuals and enterprises in the informal sector, given the size and persistence of the sector in the region. In this paper we examine the structural impact of access and usage of digital technology by informal enterprises on labour productivity. Using a sample of non-farm informal enterprises in Nigeria, we employ IV LASSO techniques to carry out our analysis.
    Keywords: Information technology, Informal sector, Productivity, Instrumental variable, Regression analysis, Nigeria
    Date: 2021
  12. By: Melani, Olivia Erisa
    Abstract: Efforts were made by the state to restore its economy. MSMEs as an important asset and the driving wheel of the Indonesian economy, which also contributes significantly to the country's GDP, are almost entirely affected by this condition. Some small businesses are unable to survive, mostly due to lack of innovation, and involvement in digitization. There needs to be empowerment for each MSMEs as a step to strengthen the economy and increase competitiveness in domestic and international markets.
    Date: 2021–06–05

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