nep-ict New Economics Papers
on Information and Communication Technologies
Issue of 2022‒08‒08
thirteen papers chosen by
Marek Giebel
Universität Dortmund

  1. Comparative Advantages in the Digital Era – A Heckscher-Ohlin-Vanek Approach By Dario Guarascio; Roman Stöllinger
  2. Towards efforts to enhance tax revenue mobilisation in Africa: Exploring the interaction between industrialisation and digital infrastructure By Pamela E. Ofori; Isaac K. Ofori; Simplice A. Asongu
  3. Digital Technologies and Financial Inclusion in Sub-Saharan Africa By Jean-Claude Kouladoum; Muhamadu Awal Kindzeka Wirajing; Tii N. Nchofoung
  4. The Impact of ICT and Intangible Capital Accumulation on Labour Demand Growth and Functional Income Shares By Robert Stehrer
  5. ICT, Technological Diffusion and Economic Growth in Chinese Cities By Qing Li; Yanrui Wu
  6. Exploring the efficacy of e-government models through information systems management-case of The Gambia By Cham, Dawda
  7. Inequality in Internet Access in India: Implications for Learning during COVID By Datta, Sandip; Kingdon, Geeta G.
  8. The Non-Linear Effects of Fixed Broadband on Economic Growth in Africa By Jean C. Kouam; Simplice A. Asongu
  9. ICT, Human Capital, and Productivity in Chinese Cities By Qing Li; Yanrui Wu
  10. The Impact of Ridehailing on Other Travel Modes and on Vehicle Dependency By Iogansen, Xiatian; Circella, Giovanni
  11. Broadband networks of the future By OECD
  12. Digital Divide or Digital Provide? Technology, Time Use and Learning Loss during COVID-19 By Asadullah, Niaz; Bhattacharjee, Anindita
  13. Legal aspects and business ethics in the national film industry By Nuryadi Wijiharjono

  1. By: Dario Guarascio; Roman Stöllinger (The Vienna Institute for International Economic Studies, wiiw)
    Abstract: This paper revisits the Heckscher-Ohlin-Vanek (HOV) theorem and investigates its fit for digital tasks and ICT capital, which both represent endowment factors that are expected to shape the digital transformation. We use a theory-consistent methodology for calculating the measured net factor content of trade (Trefler and Zhu, 2010) and apply it to a unique dataset on digital and non-digital tasks performed in detailed occupations, as well as recent data on ICT capital stocks. Equipped with these data we provide new evidence on the factor-based trade patterns for 25 EU countries and use it to test the HOV theorem. Overall, the performance of the sign test and the rank test is good if not impressive. In 83% of the cases countries are net exporters of those factors with which they are abundantly endowed, with a higher score achieved for digital tasks than for ICT capital. We conclude that the fit of the HOV theorem for highly relevant endowments of the digital era is as good as that of traditional endowment factors.
    Keywords: Heckscher-Ohlin-Vanek theorem, factor content of trade, comparative advantages, digital tasks, ICT capital
    JEL: F11 F14 D57
    Date: 2022–07
  2. By: Pamela E. Ofori (University of Insubria, Varese, Italy); Isaac K. Ofori (University of Insubria, Varese, Italy); Simplice A. Asongu (Yaoundé, Cameroon)
    Abstract: Motivated by the momentous rise in the new economy, the implementation of the African Continental Free Trade Area agreement, and the expected rebound of foreign direct investment to Africa from 2022, this study examines the joint effects of industrialisation and digital infrastructure on resource mobilisation in Africa. To this end, we mine data for 42 African countries for the analysis. The results, which are based on the system GMM estimator show that although unconditionally both industrialisation and digital infrastructure enhance (i) goods and services tax (GST), and (ii) profits, corporate and income tax (PCIT) mobilisation efforts in Africa, the effects of the former is rather remarkable in the presence of the latter. Particularly, we find that although all our digital infrastructure dynamics amplify the effect of industrialisation on GST, only ICT usage and ICT skills matter for PCIT. Second, the study unveils ICT thresholds for complementary policies. Accordingly, industrialisation and ICTs are necessary and sufficient conditions for tax revenue mobilisation only below some ICT thresholds. Above these ICT thresholds, complementary policies are needed to maintain the overall positive incidence on tax revenue mobilisation. Policy recommendations are provided in the end.
    Keywords: AfCFTA; Africa; ICT access; ICT diffusion; Industrialisation; Tax; Revenue
    JEL: C33 F6 H2 H71 O33 O55
    Date: 2022–01
  3. By: Jean-Claude Kouladoum (University of Moundou, Chad); Muhamadu Awal Kindzeka Wirajing (University of Dschang, Cameroon); Tii N. Nchofoung (University of Dschang, Cameroon)
    Abstract: The study investigates the digital technology-financial inclusion nexus in 43 Sub-Saharan African countries between 2004 and 2019. The methodologies are the Generalized Method of Moment (GMM) to take care of double causality and country heterogeneity and IV-Tobit to take into account the limited range in the dependent variables. At all levels, digital technology measured by ICT indicators of the subscription rate of fixed and mobile telephone users, fixed broadband, internet users and a composite indicator of digitalization have positive significant effects on financial inclusion. A further robustness check is conducted by computing a composite indicator of financial inclusion to determine how it is affected by digital technology. The findings indicate that the rate of financial inclusion in Sub Saharan Africa rises with increasing digital technologies. There should be more investments in terms of promoting financial and technological infrastructures and also in the human capital sector since financial literacy can play an important part in promoting financial stability and inclusive finance in Africa.
    Keywords: Digital Technologies; Financial inclusion; Sub Saharan Africa
    Date: 2022–01
  4. By: Robert Stehrer (The Vienna Institute for International Economic Studies, wiiw)
    Abstract: This paper investigates whether the diffusion of tangible IT and CT capital and intangible capital asset types has an impact on labour demand growth and the share of labour income in total income at the industry and country level. The econometric analysis is derived from a Cobb-Douglas production function taking empirical stylized facts into account. The effects of technical progress embodied in the various forms of capital impact along inter-industry and intercountry production linkages, which are considered by using global value chain indicators. The analysis is broken down to examine the influence on different types of labour, including the dimensions of gender, age, and educational attainment. Accumulation of ICT assets have generally insignificant and in some cases small positive effects on labour demand and income shares, though patterns differ across types of labour. Intangible assets show a positive relation with respect to labour demand growth.
    Keywords: capital accumulation, ICT capital, intangibles, labour demand, income distribution
    JEL: J23 J31 O33 O52
    Date: 2022–07
  5. By: Qing Li (Department of Economics and Finance, SILC Business School, Shanghai University); Yanrui Wu (Business School, The University of Western Australia)
    Abstract: This study uses a rich city-level dataset to analyse the relationship between information and communication technology (ICT) and economic growth in Chinese cities during 2001-2016. It is shown that ICT not only improves the aggregate efficiency of a city but also helps the city absorb technological diffusion from the frontier city. In addition, distance plays little role in technological diffusion process associated with ICT. Cities geographically farther away from or closer to the frontier city can equally benefit from technological diffusion as long as they have the same level of ICT development.
    Keywords: ICT, technological diffusion, economic growth, Chinese cities
    JEL: O47 O33 R11
    Date: 2022
  6. By: Cham, Dawda
    Abstract: Research on e-government initiatives is now an important area of research in the field of Information Systems. This thesis conceptualizes e-government has the process by which government agencies deliver services to citizens through the use of Information Communication Technology (ICT). Despite the large body of evidence that proves the benefits of electronic, governments and citizens still encounter problems following increased digitization of government services. Remarkably, the kind of challenges associated with increased adoption of e-government are different depending on whether the target country is developing or fully developed. This study has explored the quality of e-government services according to the perceptions of Gambian citizens. Specifically, the current study aims to examine and describe the effects of e-government services quality on citizens' faith in e-government and their willingness to continue using the system. Data was gathered utilizing an online survey managed through random citizen of Gambia individuals. Bartlett's test was also utilized to look into and determined how two variables and strongly related. Most Gambians are ignorant of Gambian e-Government programs, according to the survey. As a result, they had no idea of the government's e-government initiative. According to the findings, the Gambians have confidence in e-government services. According to the findings, the present government procedure has to be redesigned. E-government, according to the findings, is critical to the fight against corruption. In the research, it was determined that e-government transactions are error-free. E-government in Gambia seems to be reducing the frequency of in-person visits to government offices, according to the data.
    Keywords: E-government, ICT4D, ICT infrastructure, Government Operations ,The Gambia
    JEL: O3
    Date: 2022–06–24
  7. By: Datta, Sandip (University of Delhi); Kingdon, Geeta G. (University College London)
    Abstract: During COVID school closures, learning become mostly restricted to young people who had internet access at home. This paper examines internet access in India using National Sample Survey 2017-18. It probes the extent of inequality in young people's internet access across gender, caste, religion, rural-urban sector, private-public schools, and income group. Our triple-hurdle model of internet use shows that, ceteris paribus, there is a very significant digital divide across many of the social and economic groups. Additionally, intra-household analysis using family fixed effects estimation shows that girls have significantly lower ability to use internet vis-à-vis their brothers within the household.
    Keywords: schooling, internet, equality, COVID-19, India
    JEL: I21 I24 I25
    Date: 2022–06
  8. By: Jean C. Kouam (Nkafu Policy Institute, Yaoundé, Cameroon); Simplice A. Asongu (Yaoundé, Cameroon)
    Abstract: The study assesses the non-linear nexus between fixed broadband and economic growth. It focuses on data from 33 African countries for the period 2010 to 2020. The empirical evidence is based on unit root tests, panel smooth transition regression, and the generalized method of moments. The following findings are established: (i) The proportion of the population with access to electricity above and below which the relationship between fixed broadband and economic growth changes in sign is about 60%.(ii) Below this threshold, each 1% increase in fixed broadband subscriptions induces a decline in the economic growth of about 2.58%. Above the threshold, economic growth would increase by 2.43% when fixed broadband subscriptions increased by 1%. Sensitivity analyses and GMM estimation show that these results are robust. Therefore, due to the COVID-19 pandemic, which requires countries to take adequate measures to curb the spread of the pandemic, especially by means of virtual economic activities, any national policy aiming at improving the access of populations to high levels of fixed broadband services should be preceded by the implementation of an electrification program for at least 60% of the total population. Otherwise, providing a good quality internet connection for the benefit of the population would not produce the expected effects on economic growth and would therefore be counterproductive. This study complements the extant literature by providing thresholds at which fixed broadband affects economic growth.
    Keywords: Africa, Fixed broadband, Economic growth, Non-linear effects
    JEL: E23 F21 F30 L96 O55
    Date: 2022–01
  9. By: Qing Li (Department of Economics and Finance, SILC Business School, Shanghai University); Yanrui Wu (Business School, The University of Western Australia)
    Abstract: This study uses a rich city-level dataset to analyse the relationship between information and communication technology (ICT) and productivity performance in China during 2003-2016. It is shown that ICT positively contributes to Chinese cities’ productivity in conjunction with other growth determinants, such as human capital, foreign direct investment, infrastructure development, financial market development, and research and development investment. An identifiable amplified effect is detected when ICT exceeds certain threshold in Chinese cities. This threshold level is reached in over a half of Chinese cities particularly cities in coastal regions. Finally, ICT is found to substitute human capital in China’s context. Since the average education level in Chinese cities is low, the finding is in line with the argument that ICT only improves productivity of high-skilled workers but worsens that of the low-skilled ones.
    Keywords: ICT, human capital, productivity, China
    JEL: O47 O33 R10
    Date: 2022
  10. By: Iogansen, Xiatian; Circella, Giovanni
    Abstract: Emerging transportation services such as ridehailing, whose development and adoption have been enabled by information and communication technology, are transforming people’s travel and activity patterns. It is unclear what these changes mean for environmental sustainability, as researchers are still trying to understand how new mobility services might impact multimodal travel and reliance on private cars. A better understanding of emerging mobility patterns can improve travel demand forecasting tools, inform investment decisions, and help provide efficient, reliable, and accessible transportation solutions. Building on a multi-year study, researchers at the University of California, Davis surveyed 4,071 California residents in 2018 about their personal attitudes and preferences, lifestyles, travel patterns, vehicle ownership, adoption and use of new mobility services, and personal and household characteristics. This brief summarizes the results of multiple studies that have used this dataset to generate insights into the impact of ridehailing services on the use of other travel modes and on car ownership prior to the COVID-19 pandemic, as well as provides policy implications. View the NCST Project Webpage
    Keywords: Social and Behavioral Sciences, Age groups, Automobile ownership, Consumer preferences, Mode choice, Shared mobility, Travel behavior
    Date: 2022–07–01
  11. By: OECD
    Abstract: The future is digital and enabled by globally interconnected and high-quality broadband networks. However, high-quality networks across the OECD are far from universal and applications across all sectors of the economy, from smart factories and hospitals to automated vehicles, are increasing the overall demand on networks and requiring them to evolve. Furthermore, to ensure everyone can participate in in this digital future, their expansion at affordable prices to un- and under-served areas needs to continue at pace. This report explores how surging demand is shaping future networks and identifies the four main technological trends that are driving this evolution. It then takes a closer look at measuring the quality of communication services delivered through those networks to inform policy making. Finally, it provides an overview of how policies and regulations are adapting to support the upgrade and expansion of high-quality broadband networks across the OECD.
    Date: 2022–07–20
  12. By: Asadullah, Niaz (Monash University); Bhattacharjee, Anindita (Save the Children)
    Abstract: COVID-19 school closure has caused a worldwide shift towards technology-aided home schooling. Given widespread poverty in developing countries, this has raised concerns over new forms of learning inequalities. Using nationwide data on primary and secondary school children in slum and rural households in Bangladesh, we examine how learning time at home during the early months of school closure varies by access to technology at home. Data confirms significant socio-economic and gender divide in access to TV, smartphone, computer and internet among rural households. However, the analysis of daily time use data shows only a modest return to technology in terms of boosting learning time at home. Learning-grade gradient is shallow and insensitive to TV, smartphone and computer access at home. We also find no evidence that technology access per se helps learning continuity through boosting time spent in online schooling and private supplementary coaching/tutoring. While technology access matters in households where parents act as home tutors, the magnitude of such complementary effect is not large. The results imply a loss of out-of-school learning time during school closure even in households with technology access. We consider additional hypotheses relating to institutional and socio-economic barriers to home-based learning in developing countries.
    Keywords: COVID-19, learning crisis, home-based education, school closure
    JEL: D10 I21 J22 Q50
    Date: 2022–06
  13. By: Nuryadi Wijiharjono (UHAMKA - Universitas Muhammadiyah Prof Dr Hamka)
    Abstract: The revolution of information technology also has implications for the national film market. From the legal aspects and business ethics, this is especially true for pirated products, which can harm the national film industry. In fact, it was not only the film industry that was hit, but a series of industries were also hit. Film influence people's behavior and culture. There is a need for law enforcement and ethical commitments that are based on nation's moral values from all parties, especially among filmmakers, in producing film so that quality films are produced, not only artistically but also commercially. The purpose of this this paper is to examine the business environment of the national film industry from the perspective of law and business ethics.
    Keywords: Indonesian films,business ethics,law,film censorship,national film industry
    Date: 2022–05–02

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.