nep-ict New Economics Papers
on Information and Communication Technologies
Issue of 2021‒08‒09
eleven papers chosen by
Marek Giebel
Universität Dortmund

  1. Potential for India’s Entry into Factory Asia: Some Casual Findings from International Trade Data By Mitsuyo Ando; Kenta Yamanouchi; Fukunari Kimura
  2. Disintermediation: the Rise of the Personal Computer and the Internet in the Late Twentieth Century By Richard N. Langlois
  3. Digital transformation, COVID-19, and the future of work By Schilirò, Daniele
  4. Online education and the Great Convergence By Wada, Shuhei
  5. Digital Divide and the Platform Economy: Looking for the Connection from the Asian Experience By Quimba, Francis Mark A.; Rosellon, Maureen Ane D.; Calizo, Sylwyn C. Jr.
  6. Wages, Skills, and Skill-Biased Technical Change: The Canonical Model Revisited By Audra Bowlus; Lance Lochner; Chris Robinson; Eda Suleymanoglu
  7. Applicability of Link Analysis Software in Intelligence Criminal By Cosmin Butura
  8. Towards Measuring the Platform Economy: Concepts, Indicators, and Issues By Albert, Jose Ramon G.
  9. Cross-Border Issues for Digital Platforms: A Review of Regulations Applicable to Philippine Digital Platforms By Serzo, Aiken Larisa O.
  10. The Influence of Top Management Team (TMT) Characteristics Toward Indonesian Banks Financial Performance During The Digital Era (2014-2018) By Mojambo, Gabriel A.M.; Tulung, Joy Elly; Saerang, Regina Trivena
  11. From Oligopolistiic Digital Platforms to Open/Cooperative ones ? By Julienne Brabet; Lucy Taska; Corinne Vercher-Chaptal

  1. By: Mitsuyo Ando (Keio University, Japan); Kenta Yamanouchi (Kagawa University, Japan); Fukunari Kimura (Keio University, Economic Research Institute for ASEAN and East Asia (ERIA))
    Abstract: Despite its impressive economic growth in the past few decades, India is slow in adopting a task-by-task international division of labour or international production networks (IPNs). Using international trade data for international comparison from multiple angles, this paper visualises the position of India – particularly in machinery IPNs and information and communication technology (ICT) services. Although machinery industries are at the centre of IPNs in East Asia, the paper clearly visualises that India has not yet participated in Factory Asia. Rather, trade data indicate that India is still engaged in import-substituting industrialisation. The paper also argues that ICT services are a strength for the Indian economy, and its competitiveness could be utilised effectively by combining new technologies with traditional industries such as manufacturing. India still has huge potential for utilising the mechanics of a new international division of labour to accelerate economic growth, innovation, and poverty alleviation.
    Keywords: International production networks, unbundling, machinery, global value chain (GVC) participation, gravity equation
    JEL: F14 F68 O53
    Date: 2021–06–30
  2. By: Richard N. Langlois (University of Connecticut)
    Abstract: This paper is an excerpt from a larger book project called The Corporation and the Twentieth Century, which chronicles and interprets the institutional and economic history – the life and times, if you will – of American business in the twentieth century. This excerpt details the history of the personal computer industry and the Internet. It highlights the process of entrepreneurship and decentralized learning in these industries, and it considers the role of industrial and trade polices (in both the U. S. and Japan) in semiconductors and the development of the Internet. The excerpt ends with a consideration of U. S. v. Microsoft at the close of the century.
    Keywords: Innovation; technological change; entrepreneurship; industrial policy; antitrust
    JEL: D23 F14 K21 L26 L4 L52 L63 N62 N82 O3 P12 P P16
    Date: 2021–07
  3. By: Schilirò, Daniele
    Abstract: The COVID-19 pandemic has caused an acceleration of digital transformation, forcing countries and organizations around the world to make big changes in people’s lives. This paper analyses the diffusion of the digital economy and highlights the capabilities and readiness of economies to undertake the process of digital transformation. It also points out that the digital transformation is profoundly changing the global economy and society, not necessarily benefiting everyone. The challenge is to avoid the risk that the new digital system creates a more “restricted” economic and social environment, with the digital divide affecting many people across the world. The study also explores the implications of both digitization and digital technologies on the labor market and future jobs. COVID-19 and digital transformation have overturned assumptions about how individuals work by demanding new tasks and skills from employees. The paper emphasizes that any process of automation involves substituting machines for labor and leads to the displacement of workers, although there are counterbalancing forces. At the same time, digital transformation and its processes offer opportunities to create new tasks and new professional figures. However, the key to success for a fair and inclusive digital transformation lies in the joint efforts of state, business, and people.
    Keywords: digital transformation; digital technologies; COVID-19; digital divide; smart working; job displacement; future jobs
    JEL: J2 J24 M53 M54 O33
    Date: 2021–06
  4. By: Wada, Shuhei
    Abstract: In this study, we extended Acemoglu et al. (2014) in the following two ways. First, we used a constant elasticity of substitution human capital production function to show that in the short run, Internet technologies such as online education are likely to be advantageous for middle-income countries. Second, to examine whether one country voluntarily supplies online education to other countries, we changed the static model to a dynamic model. We found that despite it being a public good, developed countries voluntarily supply online education to developing countries. This is because when online education is provided, the level of human capital is higher in both transitional dynamics and the steady state than otherwise.
    Keywords: Human Capital; Online Education; Leapfrogging; Limit Cycle
    JEL: F63 H41 I24 I25
    Date: 2021–07–23
  5. By: Quimba, Francis Mark A.; Rosellon, Maureen Ane D.; Calizo, Sylwyn C. Jr.
    Abstract: This study presents the indications of the presence of a digital divide in Asia through indicators for the region and selected Asian countries. The digital divide can be seen as a determinant for the use of digital platforms as material access and skills access affect how these platforms will be used and maximized. Data from a number of countries in Asia show that certain segments of the population have better access (motivational, material, skill, and usage) to computers and the internet. These would include those who live in the urban or more affluent areas, those who are neither too old nor too young to utilize the technology, those who are male, those who are more skilled/educated, and those who have high levels of trust. van Dijk’s model posits that these groups would also be more likely participate in - and benefit from - the platform economy. As noted by van Dijk’s model, the digital platforms will face their own divide, which has already started to manifest in certain platforms. The case of accommodation platforms show that the more commercialized and touristy areas will benefit the most. This will place a wider gap between commercial and touristy areas and its periphery. Other platforms also face trust issues and security issues. Capital platforms will tend to increase the income inequality among individuals as documented by the study of JP Morgan. Meanwhile, those who have assets would tend to earn more from digital platforms. To address the inequality that may be caused by the digital platforms, policy interventions should address not only the provision of material access but also addressing the other forms of divide. <p>Comments to this paper are welcome within 60 days from date of posting. Email
    Keywords: gender, inequality, digital divide, platform divide, internet, access
    Date: 2020
  6. By: Audra Bowlus; Lance Lochner; Chris Robinson; Eda Suleymanoglu
    Abstract: The canonical supply-demand model of the wage returns to skill has been extremely influential; however, it has faced several important challenges. Several studies show that the standard approach sometimes produces theoretically wrong-signed elasticities of substitution, yields counterintuitive paths for skill-biased technical change (SBTC), and does not account for the observed deviations in college premia for younger vs. older workers. This paper shows that these failings can be explained by mis-measurement of relative skill prices and supplies (based on standard demographic composition-adjustments) and by inadequate ad hoc functional form assumptions about the path for SBTC. Improved estimates of skill prices and supplies that account for variation in skill across cohorts within narrowly defined groups help explain the observed deviation in the college premium for younger vs. older workers, even with perfect substitutability across age. Re-estimating the model with these prices and supplies produces a good fit with better out-of-sample prediction and robustly yields positive elasticities of substitution between high and low skill workers. The estimates suggest greater substitutability across skill and a more modest role for SBTC. We implement two new approaches to modelling SBTC. First, we study the extent to which recessions induce jumps or trend-adjustments in skill bias and find evidence that both features are important (but differ across recessions). Second, we link SBTC to direct measures of information technology investment expenditures and show that these measures explain the evolution of skill bias quite well. Together, these approaches suggest that the ad hoc assumptions for SBTC previously employed in the literature are too crude to fit the data well, leading to the incorrect conclusion that SBTC slowed during the early-1990s and under-estimates of the elasticity of substitution between high and low skill workers.
    Keywords: skills, human capital, college, skill-biased technical change, wage premium
    JEL: E24 J24 J31 O33
    Date: 2021
  7. By: Cosmin Butura (Dimitrie Cantemir†Christian University of Bucharest, Romania)
    Abstract: The accelerated evolution of technology during all this time has meant for forensic science a bridge from the classic methods of solving cases to modern methods of expertise. Numerous modern forensic identification devices have stormed the field of science in question. The novelty element that represented the beginning of the evolution of technology was the computer, and at the time of its appearance, for forensic specialists, it was a challenge that was determined to be a real success. With the development of the technological field, there is a significant increase in computerized crimes, which could not be controlled and stopped at the same time with the new device, software or pro-gram. If yesterday we were working with documents that became archives, where despite the high crime rate, it was equivalent to the rate of solving them. Cybercrime has become a real problem for the authorities, given that documents are stored on servers and they belong to national security, mentioning here about: the personal data of each citizen, financial statistics, military statistics, etc. Disclosing such secrets poses a major risk to national security, and these criminals are called hackers. Against hackers, intelligence forensics have had to find solutions to stop cybercrime in such a short time. One of the modern programs in the software industry is Link Analysis. This program is used for the purpose of discovering valuable knowledge, such as data analysis from the computer systems of the state institutions concerned, namely links to web platforms or civil society. Link Analysis will allow determining their relationship and also will allow the optimization of all search engines (Google, Yahoo, etc.) in the field of medical, forensic or security. Regarding the networking network, the software makes the connection between determining the integrity of the internet connection in each network node and the physical and virtual connections after analyzing the specific data. With the help of this software, forensic specialists will be able to find all the digital blockages, improving the internet network and thus avoiding cyber-attacks.
    Keywords: internet, software, forensics, cybernetics, data analysis
    Date: 2021–05
  8. By: Albert, Jose Ramon G.
    Abstract: As digital platforms provide consumers opportunities to interact with suppliers of goods and services through the internet, these platforms have radically transformed business activities, as well as the nature of work. The disruptions from the novel coronavirus pandemic also show how platforms enable people to cope with disruptions and to increasingly produce goods and services themselves in some sectors, such as transportation services, food and accommodation, and culture and recreational industries. These platforms provide intermediary and financial services, either implicitly or explicitly, and it is important that policymakers, businesses, and people, in general, have a better sense of the platform economy. National statistical systems, however, hardly give a clear and integrated portrait of the role, nature and size of the platform economy in large part because of measurement issues. This paper defines platforms, typologies and related definitions and classifications, describes drivers of value creation and capture in platforms, and discusses policy implications. It also discusses the major challenges in data collection, arising from the cross-border nature of platforms, as well as the complex activities in a platform economy, among others. The paper also discusses, albeit briefly, some policy implications for the measurement of the platform economy to better understand the socioeconomic implications of increasing digitalization and the rise of the platform economy. <p>Comments to this paper are welcome within 60 days from date of posting. Email
    Keywords: indicators, digital economy, sharing economy, digital platforms, platform economy, data
    Date: 2020
  9. By: Serzo, Aiken Larisa O.
    Abstract: This paper identifies certain policy issues in the current regulatory infrastructure of the Philippines, which may prevent digital platforms from innovating and participating in the global digital economy. <p>In brief, these policy issues relate to the incoherence between the national innovation strategy of the government and the mishmash of regulations that digital platforms are subjected to. In particular, this relates to investment regulations, as well as regulations on mass media, retail, advertising, logistics, telecommunications, and education. Such landscape has led to a regulatory environment that is unable to provide certainty as to the legality of the activities of Philippine-based digital platforms. <p>There is a plethora of constitutional, statutory, and policy support for innovation, e-commerce, digitization, and entrepreneurship in the Philippines. However, there is a disconnect between these policies and the environment created by the actual implementation of the regulations. <p> Comments to this paper are welcome within 60 days from date of posting. Email
    Keywords: regulatory reform, digital platforms, foreign direct investments, internet law, mass media, startups, internet economy
    Date: 2020
  10. By: Mojambo, Gabriel A.M.; Tulung, Joy Elly; Saerang, Regina Trivena
    Abstract: Despite of the abundant opportunities in Indonesian bank industry, digital era began to challenge banks to fully embrace the use of technology (information) with the objective of prolong competitive advantage. An organization becomes a reflection of its top managers. In facing such challenges, Top Management Team (TMT) members initiative to overcome the current status quo, will be reflected to the company under their management. For this reason, an effective TMT structure is a mandatory during the digital era to digitalize banking firms. This research investigates the relationship between top management team characteristics and Indonesian banks financial performance during the digital era. For top management team characteristics, this research includes functional background, gender diversity, average age, level of education, IT Expertise, and experience in years. While to measure the performance of Indonesian banks financial performance the paper includes return on asset (ROA), capital adequacy ratio (CAR), and non-performing loan (NPL). The results show that gender diversity have positive significant influences on NPL, average age have positive significant influences on ROA, CAR, NPL, and IT expertise have positive significant influences on CAR.
    Keywords: Bank, Top Management Team, Financial Performance
    JEL: G2 G21 G3
    Date: 2020–01
  11. By: Julienne Brabet; Lucy Taska; Corinne Vercher-Chaptal (CEPN - Centre d'Economie de l'Université Paris Nord - UP13 - Université Paris 13 - USPC - Université Sorbonne Paris Cité - CNRS - Centre National de la Recherche Scientifique)
    Abstract: Based on a literature review, this paper explores the disruptive nature of digitalization and the oligopolistic digital platforms that embody it, as well as the promises and difficulties of emergent open cooperative platforms. Before analysing the main questions raised by those platforms, we first propose a brief analysis of the digitalization process as a socio-technical mutation, of its risks and opportunities through four prospective scenarios. We then build a typology of the oligopolistic platforms at the heart of the present phase of digitalization that cooperative/open platforms aim to supplant or at least to challenge. Could the combination of the new open source movement, with the principles developed for successful commons and those of the older cooperatives offer an alternative? The obstacles are huge, and the questions raised much more abundant than the answers brought by theory and/or experimentation. The development of alternative platforms is thus questioning modes of: Distribution of the bundles of rights and governance; Centralization and decentralization; Autonomy and synergy; Choice of activities; Growth; Differentiation, standardization, convergence and hybridization; Localisation, globalisation and glocalization; Fair pricing; Organization of work, protection of workers and more largely citizen; Inclusion and exclusion of stakeholders; Funding; Relationship to the State and private or public entities ... among other, often combined, dimensions. Most importantly, alternative platform development also questions the capacity for cooperation of a highly socialized human nature.
    Keywords: Alternative Platforms,Oligopolist Platforms,Digitalization
    Date: 2020–12–04

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