nep-ict New Economics Papers
on Information and Communication Technologies
Issue of 2022‒03‒14
eleven papers chosen by
Marek Giebel
Universität Dortmund

  1. The Information and Communication Technologies-Economic Growth Nexus in Tunisia: A Cross-Section Dynamic Panel Approach By Mounir Dahmani; Mohamed Mabrouki; Adel Ben Youssef
  2. Foreign Direct Investment, Information Technology and Total Factor Productivity Dynamics in Sub-Saharan Africa By Simplice A. Asongu; Nicholas M. Odhiambo
  3. The broadband diffusion process and its determinants in Algeria: A simultaneous estimation By Bacha, Radia; Gasmi, Farid
  4. Growth Factors in Developed Countries: A 1960–2019 Growth Accounting Decomposition By Gilbert Cette; Aurélien Devillard; Vincenzo Spiezia
  5. Are ICT's boosting tax revenues? Evidence from developing countries By Jean-François Brun; Gérard Chambas; Jules Tapsoba; Abdoul-Akim Wandaogo
  6. Cloud computing's influence on digital marketing By Abid, Hofa
  7. Media and the Internet Access Providers in an Era of Convergence By Pierre-Jean Benghozi; Françoise Benhamou
  8. Cuierzhuang Phenomenon: A model of rural industrialization in north China By Jinghan Tian; Jianhua Wang
  9. Search and Information Frictions on Global E-Commerce Platforms: Evidence from AliExpress By Jie Bai; Maggie X. Chen; Jin Liu; Xiaosheng Mu; Daniel Yi Xu
  10. The Decreasing of Pancasila Values Implementation and Actualization on the Character of Indonesian Youth in the Digital Era By Devi, Silvia; Adiyani, Khairunnisa; Panggabean, Ohara Cristhoper; Wulanika, Linda
  11. Market Volatility, Digital Transformation and Innovation changed the way of competition By Wijenayaka, Amal

  1. By: Mounir Dahmani (Université de Gafsa); Mohamed Mabrouki (Université de Gafsa); Adel Ben Youssef (UCA - Université Côte d'Azur)
    Abstract: The rapid diffusion of information and communication technologies (ICT) is becoming an important determinant of national economic growth. This paper examines the relationship between development of ICT and economic growth in Tunisia based on a sector analysis. We employ the common correlated effect mean group (CCEMG) and augmented mean group (AMG) methods and annual panel data for 1997 to 2017, to explore the relationship between ICT diffusion and economic growth in Tunisia. Our sector analysis shows that the effect of ICT on value added is heterogenous depending on the sector of activity and provides three main findings. First, in some sectors such as financial services, transport, building and civil engineering, hotel and restaurant services and other market services ICT have a positive and significant impact on value added. These sectors benefit from use of ICT. Second, in some sectors such as trade and various manufacturing industries, ICT has a negative and significant impact on value added. These sectors need to be well organized and well managed to avoid domination by informalities. Third, in some sectors such as public administration there is a productivity paradox and despite huge investment in ICT they have no impact on value added due to the absence of a deep organizational change.
    Keywords: ICT diffusion index,economic growth,cross-sectional,dynamic panel,CCEMG,AMG
    Date: 2022
  2. By: Simplice A. Asongu (Yaounde, Cameroon); Nicholas M. Odhiambo (Pretoria, South Africa)
    Abstract: Compared to other regions of the world, the potential for information technology penetration in sub-Saharan Africa (SSA) is very high. Unfortunately, productivity levels in the region are also very low. This study investigates the importance of information technology in influencing the effect of foreign direct investment (FDI) on total factor productivity (TFP) dynamics. The focus is on 25 countries in SSA. Information technology is measured with mobile phone penetration and internet penetration, while the engaged TFP productivity dynamics are TFP, real TFP, welfare TFP, and real welfare TFP. The empirical evidence is based on the Generalised Method of Moments. The findings show that, with the exception of regressions pertaining to real TFP growth for which the estimations do not pass post-estimation diagnostic tests, it is apparent that information technology (i.e. mobile phone penetration and internet penetration) modulate FDI to positively influence TFP dynamics (i.e. TFP, welfare TFP, and welfare real TFP). Policy and theoretical implications are discussed.
    Keywords: Productivity; Foreign Investment; Information Technology; Sub-Saharan Africa
    JEL: E23 F21 F30 L96 O55
    Date: 2022–01
  3. By: Bacha, Radia; Gasmi, Farid
    Abstract: Digital transformation engendered by ICT advances, most notably broadband, pertains to many sectors that are known to drive economic development. This paper seeks to highlight market structure, institutional, and socio-economic factors that influence broadband adoption in Algeria. We apply to a novel 2003-2019 database a procedure that simultaneously, instead of sequentially as typically done, selects the best among the Bass, Gompertz, and Logistic innovation diffusion models estimated with Nonlinear Least Squares and searches for significant determinants of broadband adoption. We find that the data fits reasonably well the Gompertz and Logistic distributions with the latter outperforming the former not only from a statistical standpoint but also and more importantly for it captures Algeria's significant delay in the diffusion of broadband due to the social turmoil of the 1990 years’ decade. We identify some policy levers for fostering ICT applications. We find that the degree of concentration has a U-shaped impact on broadband adoption and that institutional quality, mobile broadband introduction, and tertiary education enrollment have a positive impact. These findings suggest that broadband adoption in Algeria can be expected to gain from encouraging entry with differentiated broadband services through higher-generation access technologies, improving regulatory governance, and enhancing digital literacy through higher education.
    Keywords: Broadband,;Digital transformation,;Innovation diffusion models; Regulation; Competition.
    JEL: L51 L86 L96 O2 O14 O33 O55
    Date: 2022–02
  4. By: Gilbert Cette (Banque de France - Banque de France - Banque de France, NEOMA - Neoma Business School); Aurélien Devillard (NEOMA - Neoma Business School, Centre de recherche de la Banque de France - Banque de France); Vincenzo Spiezia (OECD - The Organisation for Economic Coopération and Development)
    Abstract: Using a new and original database, our paper contributes to the growth accounting literature with three original aspects: First, it covers a long period from the early 60's to 2019, just before the COVID-19 crisis; second, it analyzes a large set of economies (30 plus the Euro Area) at the country level; finally, it singles out the growth contribution of information and communications technologies (ICTs) capital as well as robots. Our findings show that the main drivers of labor productivity growth over the whole 1960–2019 period appear to have been education, total factor productivity (TFP), non-ICT and non-robot capital deepening. The relative contribution of ICT capital is found to be declining from the mid-2000s, although our country-level economy dataset does not make it possible to estimate the TFP contribution of ICTs. The contribution of robots to productivity growth through capital deepening and TFP appears to be significant in Germany and Japan in the sub-period 1975–1995, in France and Italy in 1995–2005, and in several Eastern European countries in 2005–2019. Our findings also confirm the slowdown in TFP in most countries from at least 1995 onwards. This slowdown is mainly accounted for by a decrease in the contributions of non-ICT non-robot capital deepening and TFP.
    Keywords: Growth,Productivity,ICTs,Robots
    Date: 2022
  5. By: Jean-François Brun (CERDI - Centre d'Études et de Recherches sur le Développement International - UCA [2017-2020] - Université Clermont Auvergne [2017-2020] - CNRS - Centre National de la Recherche Scientifique); Gérard Chambas (FERDI - Fondation pour les Etudes et Recherches sur le Développement International); Jules Tapsoba; Abdoul-Akim Wandaogo (CERDI - Centre d'Études et de Recherches sur le Développement International - UCA [2017-2020] - Université Clermont Auvergne [2017-2020] - CNRS - Centre National de la Recherche Scientifique)
    Abstract: This paper investigates the effect of ICT readiness and ICT usage on tax revenue mobilization in developing countries. The paper uses a panel fixed effect methodology on a sample of 96 developing countries from 2005 to 2016. We provide evidences that although ICT readiness affects positively tax revenue, the effect is not significant. However, overall ICT usage increase tax revenue. This positive and significant effect remains valid for various taxes: direct taxes and VAT notably. In addition, business, government and individual use of ICTs each have a greater effect on tax revenues than global ICT usage. Regarding the transmission channels, we find that the effect passes through the control of corruption, government effectiveness and tax compliance. Finally, taking into account the time dimension of the study, the positive effect is observed over the second half of the period under study rather than during the first.
    Keywords: ICTs,Tax revenues,Panel data,Developing countries
    Date: 2020–10–27
  6. By: Abid, Hofa (Bt research scoiety)
    Abstract: Numerous cloud-based marketing apps, ranging from CRM systems to marketing automation tools, are already in widespread usage today. These services assist marketers in tracking their campaigns and efforts across mobile, social, and Web platforms, as well as consumer interactions. There are more methods to engage prospective clients in this technological era, as Internet use has expanded across devices - but it's also more difficult to capture their attention. Consumers want for material that is original, organic, engaging, and individualized. Marketers may use cloud technologies to create new plans based on data and to create more customized and targeted marketing. These tools are almost certainly going to be integrated with one of the following digital marketing components.
    Date: 2021–12–18
  7. By: Pierre-Jean Benghozi (CNRS - Centre National de la Recherche Scientifique, i3-CRG - Centre de recherche en gestion i3 - X - École polytechnique - Université Paris-Saclay - CNRS - Centre National de la Recherche Scientifique); Françoise Benhamou
    Abstract: Technological breakthroughs are an enabler in the convergence between telecommunications operators and media. Close economic examination put at stake the interpretation based on vertical integration and complementary strategies of telecom operators and content producers. Approach to convergence must be renewed because situation is not the same as 20 years ago. The multiplication of TV channels, the development of Internet, and the growing bandwidths have resulted in the explosion of online content. This has contributed to the expansion and predominance of digital platforms that invested significantly in content production and network infrastructure. These original converging strategies call for regulatory issues because the changes raise new challenges associated with the new market structure: segmentation of regulation perspective, competitive and non-price strategies, and net neutrality.
    Keywords: Telecoms industry,Convergence,Media regulation,Telecoms regulation,Internet platforms
    Date: 2021–03–17
  8. By: Jinghan Tian; Jianhua Wang
    Abstract: Cuierzhuang Phenomenon (or Cuierzhuang Model) is a regional development phenomenon or rural revitalization model driven by ICT in the information era, characterized by the storage and transportation, processing, packaging and online sales of agricultural products, as well as online and offline coordination, long-distance and cross-regional economic cooperation, ethnic blending, equality, and mutual benefit. Unlike the Wenzhou Model, South Jiangsu Model, and Pearl River Model in the 1980s and 1990s, the Cuierzhuang Model is not only a rural revitalization brought about by the industrialization and modernization of northern rural areas with the characteristics of industrial development in the information age, but also an innovative regional economic cooperation and development model with folk nature, spontaneous formation, equality, and mutual benefit. Taking southern Xinjiang as the production base, Xinjiang jujubes from Hotan and Ruoqiang are continuously transported to Cuierzhuang, Cangzhou City, Hebei Province, where they are transferred, cleaned, dried and packaged, and finally sold all over the country. With red dates as a link, the eastern town of Cuierzhuang, which is more than 4,000 kilometers apart, connected with Xinjiang in the western region. Along the ancient Silk Road, the farthest route can reach as far as Kashgar through the southern Xinjiang route. Then, how did this long-distance and cross-regional economic cooperation channel form, what are the regional economics or economic geography principles of Cuierzhuang attracting Xinjiang jujube, and the challenges and opportunities faced by Cuierzhuang phenomenon, etc. A preliminary economic analysis has been carried out in this paper.
    Date: 2022–02
  9. By: Jie Bai (Harvard Kennedy School); Maggie X. Chen (George Washington University); Jin Liu (New York University); Xiaosheng Mu (Princeton University); Daniel Yi Xu (Duke University)
    Abstract: We study how search and information frictions shape market dynamics in global e-commerce. Observational data and self-collected quality measures from AliExpress establish the existence of search and information frictions. A randomized experiment that offers new exporters exogenous demand and information shocks demonstrates the potential role of sales accumulation in enhancing seller visibility and overcoming these demand frictions. However, we show theoretically and quantitatively that this demand-reinforcement mechanism is undermined by the large number of online exporters. Our structural model rationalizes the experimental findings and quantifies efficiency gains from reducing the number of inactive sellers.
    Keywords: global e-commerce, exporter dynamics, product quality, information frictions, search frictions
    JEL: F14 L11 O12
    Date: 2021–09
  10. By: Devi, Silvia; Adiyani, Khairunnisa; Panggabean, Ohara Cristhoper; Wulanika, Linda
    Abstract: Today, globalization and digitalization play a critical role in advancing science and technology in developing nations such as Indonesia. The change from a traditional to a digital environment has numerous positive and negative consequences. Globalization and digitalization have also successfully affected many elements of human life. In addition to delivering numerous valuable features and services for humans, the enormity of globalization and digitalization has a detrimental influence, particularly on young Indonesians. The crisis of character and morality among Indonesian young is significant, as seen by their current behavior, which is inconsistent with the character of the Indonesian country and the principles enshrined in Pancasila. Pancasila, which incorporates a variety of instruments, praxis, and axiological ideals, should serve as a guide for young people's behavior. This study investigates the influence of the deteriorating application of Pancasila's practical ideals in the daily lives of young people in the modern, digital era and how globalization impacts the moral degeneration of today's Indonesian youth. The researcher employs the process of Literature Review. The primary sources are literature studies in research papers, journals, and books. The absence of Pancasila ideals application and the expansion of globalization and digitalization among young people are diminishing and impacting the character of Indonesian youth. The application and execution of Pancasila's practical ideals among young Indonesians must be enhanced to prevent the nation's moral integrity from being undermined by the expanding currents of globalization and digitalization.
    Date: 2021–12–28
  11. By: Wijenayaka, Amal
    Abstract: The world is rapidly changing. As a result, organizations have to find new ways to compete with close competitors. It is challenging to use traditional methods and ways. Advertising and price war are not gaining sustainable competitive advantage further. Most past researches mentioned that Innovation is the key to future success. Furthermore, it is required to transform to digitalization. It provides new insight into the organization. Market volatility is a huge challenge to the organization. However, it can be managed with digitalization and Innovation.
    Date: 2022–01–05

This nep-ict issue is ©2022 by Marek Giebel. It is provided as is without any express or implied warranty. It may be freely redistributed in whole or in part for any purpose. If distributed in part, please include this notice.
General information on the NEP project can be found at For comments please write to the director of NEP, Marco Novarese at <>. Put “NEP” in the subject, otherwise your mail may be rejected.
NEP’s infrastructure is sponsored by the School of Economics and Finance of Massey University in New Zealand.