nep-ict New Economics Papers
on Information and Communication Technologies
Issue of 2021‒10‒25
five papers chosen by
Marek Giebel
Universität Dortmund

  1. Epidemic Exposure, Financial Technology, and the Digital Divide By Saka, O.; Eichengreen, B.; Aksoy, C. G.
  2. Toward Cleaner Production: Can Mobile Phone Technology Help Reduce Inorganic Fertilizer Application? Evidence Using a National Level Dataset By Nawab Khan; Ram L. Ray; Hazem S. Kassem; Muhammad Ihtisham; Abdullah; Simplice Asongu; Stephen Ansah; Shemei Zhang
  3. Evolution paths of stakeholder-oriented smart transportation systems based on 5G By Jurva, Risto; Matinmikko-Blue, Marja; Outila, Tarja; Merisalo, Virve
  4. The effects of a risk-based approach to tax examinations: Evidence from Tanzania By Amina Ebrahim; Elineema Kisanga; Ezekiel Swema; Vincent Leyaro; Edwin P. Mhede; Ephraim Mdee; Heikki Palviainen; Jukka Pirttilä
  5. Financial Inclusion Through Fintech in the Digital Economy By Seo, Eunsook; Yoo, Kyeongwon

  1. By: Saka, O.; Eichengreen, B.; Aksoy, C. G.
    Abstract: We ask whether epidemic exposure leads to a shift in financial technology usage and 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 activity. Heterogeneity in response centers on the age, income and employment of respondents. Young, high-income earners in full-time employment have the greatest tendency to shift to online/mobile trans-actions in response to epidemics. These effects are larger for individuals with better exante 3G signal coverage, highlighting the role of the digital divide in adaption to new technologies necessitated by adverse external shocks.
    Keywords: epidemics; fintech; banking
    Date: 2021
  2. By: Nawab Khan (Sichuan Agricultural University,Sichuan, China); Ram L. Ray (Prairie View A&M University, Prairie View, USA); Hazem S. Kassem (King Saud University, Riyadh, Saudi Arabia); Muhammad Ihtisham (Huazhong Agricultural University, Wuhan, China); Abdullah (PMAS-Arid Agriculture University, Pakistan); Simplice Asongu (Yaoundé, Cameroon); Stephen Ansah (Sichuan Agricultural University, Sichuan, China); Shemei Zhang (Sichuan Agricultural University, Sichuan, China)
    Abstract: Increasing agricultural production and optimizing inorganic fertilizer (IF) use are imperative for agricultural and environmental sustainability. Mobile phone usage (MPU) has the potential to reduce IF application while ensuring environmental and agricultural sustainability goals. The main objectives of this study were to assess MPU, mobile phone promotion policy, and whether the mediation role of human capital can help reduce IF use. This study used baseline regression analysis and propensity score matching, difference-in-differences (PSM-DID) to assess the impact of MPU on IF usage. However, the two-stage instrumental variables method (IVM) was used to study the effects of mobile phone promotion policy on IF usage. This study used a national dataset from 7,987 rural households in Afghanistan to investigate the impacts of MPU and associated promotion policies on IF application. The baseline regression outcomes showed that the MPU significantly reduced IF usage. The evaluation mechanism revealed that mobile phones help reduce IF application by improving the human capital of farmers. Besides, evidence from the DID technique showed that mobile phone promotion policies lowered IF application. These results remained robust after applying the PSM-DID method and two-stage IVM to control endogenous decisions of rural households. This study results imply that enhancing the accessibility of wideband in remote areas, promoting MPU, and increasing investment in information communication technologies (ICTs) infrastructure can help decrease the IF application in agriculture. Thus, the government should invest in remote areas to facilitate access to ICTs, such as having a telephone and access to a cellular and internet network to provide an environment and facility to apply IF effectively. Further, particular policy support must focus on how vulnerable populations access the internet and mobile phone technologies.
    Keywords: mobile phone usage; propensity score matching; difference-in-difference; inorganic fertilizer usage; human capital; sustainable development; Afghanistan
    Date: 2021–01
  3. By: Jurva, Risto; Matinmikko-Blue, Marja; Outila, Tarja; Merisalo, Virve
    Abstract: Societies are experiencing large-scale transformation through digitalization programs covering all private and public sectors. Digitalization advances also the growing demands of sustainable development, in which nations and cities all over the world have set ambitious targets. Transportation is one the cornerstone verticals of cities and has attracted wide attention from various stakeholders developing services and solutions for digitalization. In general, ICT solutions are in the core of digitalization and trailblazing technologies have been developed to enable modern transportation services. 5G technology covering wireless connectivity, IoT sensor technology, distributed edge computing, artificial intelligence, high power computing and service platforms offers numerous opportunities to the development of sophisticated smart transportation services. However, to adopt a pervasive approach for the evolvement of digital transportation services, it is important to examine the system level point of view. Developing occasional services for various transport modes without targeted inter-operability of services, the result of digitalization of transportation can be extremely fragmented. This paper aims to highlight the top-down angle of research and development of the smart transportation system. The development requires seamless co-operation of researchers and specialists of transport systems, urban design and planning and wireless technologies to integrate transport infrastructure, 5G wireless communication infrastructure and traffic management systems to enable advanced digital services for all transport modes. Moreover, this article introduces the stakeholders recognized from transport systems, urban design and planning and wireless technologies. The role of each stakeholder is described a like.
    Date: 2021
  4. By: Amina Ebrahim; Elineema Kisanga; Ezekiel Swema; Vincent Leyaro; Edwin P. Mhede; Ephraim Mdee; Heikki Palviainen; Jukka Pirttilä
    Abstract: While technical assistance and increased use of ICT in the area of tax administration have been regarded to hold considerable promise for greater revenue collection, the evidence on how these activities work in the real-world circumstances of developing countries is scant. The paper attempts to fill this gap by evaluating an intervention undertaken jointly by the Finnish and Tanzanian revenue administrations. In this pilot programme, a risk-based method for enhancing firm tax examinations in Tanzania was developed.
    Keywords: Risk-based approach, Tax compliance, Tanzania, Tax administration, Domestic revenue mobilization, Administrative data, Taxable income
    Date: 2021
    Abstract: Since the 2008 global financial crisis, including the recent COVID 19 pandemic, low interest rates and low economic growth have continued around the world. In spite of this low interest rate trend, as the economic downturn prolongs, there is a situation of concern called the “new normal” of low interest rates and low economic growth, and low prices. In this new normal economic structure, the rapid progress of aging is increasing the necessity and desire for asset accumulation. In addition, digital finance such as Fin-tech with the evolution of the underlying technologies and the emergence of new technologies has replaced or improved many functions of existing finance in the advent of the 4th industrial revolution era. These changes are expected to bring benefits to the individual and corporate finance sectors, which have been subject to financial inclusion. On the other hand, digital finance, which is changing at such a rapid pace, may further isolate some individuals who were in the blind spot of finance, such as the elderly, and a support system for this is an issue that should be included in the policy of financial inclusion in each country. In this paper we find that Asian countries like other regions have achieved tangible results in financial inclusion while achieving financial deepening. When looking through various financial inclusion indicators such as holding accounts and loans, ATMs, and bank branches, the Asian region has achieved similar or superior performance to other regions. Compared to the income level, the growth of financial inclusion in Asia was found to be attributable to better performance in middle-income countries than in other similar regions. High-income countries in Asia are performing somewhat lower than similar peer groups in other regions, but this seems to be due to stagnation of growth. More seriously, financial inclusion in low-income countries in Asia is not appearing faster than in other income groups. In Asian countries there appears to be a wide variation in regional financial inclusion. However, Asian countries are expanding around the younger generation in the use of ICT technology that is helpful in spreading financial inclusion so if digital inclusive finance centered on Fintech is properly applied, Asian countries will become a new model for digital financial inclusion. However, since the gap in the use of Fintech in the region is large, how to fill this gap is being raised as an important policy task for each country as well as the whole region. (the rest omitted)
    Keywords: Fintech; Digital Finance; Financial Inclusion; Comparative Studies of Countries
    JEL: O33
    Date: 2020–12–30

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