nep-ict New Economics Papers
on Information and Communication Technologies
Issue of 2022‒10‒03
five papers chosen by
Marek Giebel
Universität Dortmund

  1. Information Technology, Business Sustainability and Female Economic Participation in Sub-Saharan Africa By Simplice A. Asongu; Mushfiqur Rahman; Mohammad Alghababsheh
  2. Empirical Analysis of Skill Possession and Skill Use: Focusing on ICT and English skills (Japanese) By SANO Shinpei; TSURU Kotaro; KUME Koichi; YASUI Kengo
  3. COVID-19 and Entrepreneurship Entry and Exit: Opportunity Amidst Adversity By Otrachshenko, Vladimir; Popova, Olga; Nikolova, Milena; Tyurina, Elena
  5. Measuring Digital Skills across the EU: Digital Skills Indicator 2.0 By VUORIKARI Riina; JERZAK Natalia; KARPINSKI Zbigniew; POKROPEK Artur; TUDEK Jadwiga

  1. By: Simplice A. Asongu (Yaounde, Cameroon); Mushfiqur Rahman (University of Wales Trinity Saint David, UK); Mohammad Alghababsheh (Mutah University, Jordan)
    Abstract: This study assesses how business/financial sustainability in the perspective of financial stability moderates information technology to influence female economic participation in 49 countries in Sub-Saharan Africa for the period 2008-2018. The empirical evidence is based on Tobit regressions that enabled the study to account for the censored nature of the outcome variables. The following important findings are established. First, ICT dynamics (mobile phone penetration, internet penetration and fixed broadband subscriptions) are consistently moderated by business sustainability to positively affect female employment in the industry. Second, business sustainability scores need to exceed certain thresholds before moderating fixed broadband subscriptions to induce favorable overall effects on female employment, female labour force participation and female unemployment rates. These thresholds are 18.742 and 19.505 Z-scores for positive effects on female employment and female labour force participation, respectively and a Z-score of 17.300 for a negative impact on female unemployment. The thresholds which should be exceeded are within policy reach, make economic sense and are policy relevant. The study contributes to the extant literature by providing actionable thresholds of business sustainability that can be employed by policy makers in order for information technology to positively influence female economic inclusion in Sub-Saharan Africa.
    Keywords: information technology; business sustainability, gender inclusion
    JEL: E23 F21 F30 L96 O55
    Date: 2022–01
  2. By: SANO Shinpei; TSURU Kotaro; KUME Koichi; YASUI Kengo
    Abstract: This paper empirically analyzes the relationship between the ICT skills possessed by individuals (ICT skill possession) and the use of ICT at work (ICT skill use) and their wages and job characteristics, using individual data from a web-based survey conducted independently by the Research Institute of Economy, Trade and Industry. The results show that there is a wage premium for both ICT skill possession and ICT skill use; for ICT skill possession, the premium does not necessarily increase as one becomes more advanced, while for ICT skill use, wages increase as skill advances. While there is no uniform relationship between English skill possession and wages, a wage premium is observed for English skill use. The analysis focused on ICT skills, for which the relationship between the use and possession of skills at each level can be determined, and found that the level of ICT skills possessed by individuals matches the level of ICT skills used in the cases of about 78% of all respondents, while about 16% use ICT at work only at a low level relative to the skills they possess. The wage premium increases when the level of ICT skill possession matches the level of ICT skill use at the medium and high levels. The results suggest that it is important for skills to be fully utilized, and that it may be important not only to improve skills, but also to improve the environment in the firms where the skills are held and to implement policies that encourage labor mobility of highly skilled workers so that they can make better use of their skills.
    Date: 2022–08
  3. By: Otrachshenko, Vladimir (Justus Liebig University, Giessen); Popova, Olga (Leibniz Institute for East and Southeast European Studies (IOS)); Nikolova, Milena (University of Groningen); Tyurina, Elena
    Abstract: We theoretically and empirically examine how acquiring new skills and increased financial worries influenced entrepreneurship entry and exit intentions during the pandemic. To that end, we analyze primary survey data we collected in the aftermath of the COVID-19's first wave in Russia, which has had one of the highest COVID-19 infection rates globally. Our results show that acquiring new skills during the pandemic helps maintain an existing business and encourages start-ups in sectors other than information technology (IT). For IT start-ups, having previous experience matters more than new skills. While the pandemic-driven financial worries are associated with business closure intentions, they also inspire new business start-ups, highlighting the creative destruction power of the pandemic. Furthermore, preferences for formal employment and remote work also matter for entrepreneurial intentions. Our findings enhance the understanding of entrepreneurship formation and closure in a time of adversity and suggest that implementing entrepreneurship training and upskilling policies during the pandemic can be an important policy tool for innovative small business development.
    Keywords: business entry, information technology (IT), business closure, COVID-19, entrepreneurship intentions, self-employment, Russia
    JEL: E24 J24 L26 P20
    Date: 2022–08
  4. By: Krupa Mehta
    Abstract: Digital marketing is a way to promote brands and products online and through other digital channels. Aims to help businesses reach these target consumers through the internet and other digital avenues. There are a number of different digital technologies that marketers and companies use to get their marketing message to their target audience. Digital marketing is vital for modern businesses because the internet plays a significant role in how today’s consumer makes purchasing decisions. The internet also impacts how consumers actually purchase their products and services. This makes it imperative for businesses to not only be present online but to boost visibility as much as possible. Key words: Social Media, Digital Marketing, Latest Trends, Entrepreneurs.
    Date: 2022–03
  5. By: VUORIKARI Riina (European Commission - JRC); JERZAK Natalia; KARPINSKI Zbigniew (European Commission - JRC); POKROPEK Artur; TUDEK Jadwiga
    Abstract: This short technical report presents the updated methodology for the measurement of digital skills using the Digital Skills Indicator (DSI). The DSI was first piloted in 2014 and today, it is used to monitor the ambitious policy target of reaching a minimum of 80% of the EU population with at least basic digital skills by 2030. The report presents the updated Digital Skills Indicator (DSI 2.0). It first describes the Digital Competence Framework, which is used as an underlying theoretical framework, and then present results of the empirical validation of the DSI 2.0. The analysis confirms the high overall psychometric quality of the items that comprise DSI 2.0. The analysis also provides an empirical validation of DSI’s underpinning conceptual framework, DigComp 2.0. Results generally support the robustness of cross-country comparisons on the indicator. The revised indicator is the result of work carried out in 2019-2022 within Eurostat’s Information Society Working Group in order to modernise the indicator by adapting it to the revised conceptual framework (DigComp 2.0) as well as to keep it up with technological progress since the first version was published in 2015. The DSI is used for the purpose of the Digital Economy and Society Index (DESI). DESI is an annual report published by the European Commission that monitors the progress of EU Member States on their digital development.
    Keywords: Digital Skills Indicator 2.0, DSI 2.0, Digital competence framework, DigComp, Eurostat ICT Household survey
    Date: 2022–08

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