nep-ict New Economics Papers
on Information and Communication Technologies
Issue of 2022‒10‒31
seven papers chosen by
Marek Giebel
Universität Dortmund

  1. How Regulation and Enforcement of Competition Affects ICT Productivity : Evidence from MatchedRegulatory-Production Surveys in Peru’s ICT Sector By Arayavechkit,Tanida; Jooste,Charl; Urrutia Arrieta,Ana Francisca
  2. Urban-Biased Growth: A Macroeconomic Analysis By Fabian Eckert; Sharat Ganapati; Conor Walsh
  3. Does faster internet increase exports? Evidence from New Zealand By Lynda Sanderson; Garrick Wright-McNaughton; Naomitsu Yashiro
  4. Increasing Tax Collection in African Countries : The Role of Information Technology By Okunogbe,Oyebola Motunrayo; Santoro,Fabrizio
  5. Routing security: BGP incidents, mitigation techniques and policy actions By OECD
  6. HGX: The Anatomy of High Growth Exporters By Stjepan Srhoj; Alex Coad; Janette Walde
  7. Is Social Protection a Luxury Good ? By Lokshin,Michael M.; Ravallion,Martin; Torre,Ivan

  1. By: Arayavechkit,Tanida; Jooste,Charl; Urrutia Arrieta,Ana Francisca
    Abstract: How the enforcement of competition regulation of information and communications technologyaffects growth depends on how well firms adapt to competitive pressure. This paper tests this empiricallyusing Peruvian firm-level data matched to a compilation of information and communications technology regulations andcompetition enforcement cases over 10 years. Based on the theoretical dispersion in markups, the paper shows that byincreasing productivity, leaders in a market can avoid the effects of competition while maintaining market share.However, much depends on the regulatory structure, which affects productive firms differently depending on how longthey have been in business. Highly productive older firms translate regulations that make processes more complex (suchas raising quality standards) into more productivity; productive younger firms benefit more from simplifying rulesthat facilitate competition through lower entry barriers and improved operating conditions. This feature is consistentacross different segments of the information and communications technology sector.
    Date: 2022–08–23
  2. By: Fabian Eckert; Sharat Ganapati; Conor Walsh
    Abstract: Since 1980, US wage growth has been fastest in large cities. Empirically, we show that most of this urban-biased growth reflects wage growth at large Business Services firms, which are also the most intensive users of information and communications technology (ICT) capital in the US economy. We provide an explicit economic mechanism whereby ICT is more complementary with labor at larger firms. Quantitatively, we find that with such a complementarity, the observed decline in ICT prices alone can account for most of the urban-biased growth, since Business Services firms in big cities tend to be large.
    JEL: J3 O33 R11 R12
    Date: 2022–09
  3. By: Lynda Sanderson; Garrick Wright-McNaughton; Naomitsu Yashiro
    Abstract: This paper explores the relationship between adoption of ultra-fast broadband (UFB) and the export propensity of New Zealand firms. Previous literature have shown that the Internet facilitates exports by reducing search costs and informational frictions in establishing trade relationships. However, the role of faster Internet that enables the use of more recent, advanced, data-intensive digital technologies has not been well explored. This paper shows empirically that adoption of fibre broadband is associated with a higher propensity to enter exporting by New Zealand firms, suggesting that faster Internet has an additional role over traditional Internet in facilitating exporting. The paper also shows that firms that were already using the Internet more intensively prior to adopting fibre experience a stronger increase in export propensity following fibre adoption than those with less intensive Internet use, and that the positive relationship between fibre uptake and exporting is primarily observed among services firms. Instrumental variable analysis to assess the causal relationship between fibre uptake and exporting suggests that the higher export entry among fibre users is driven by self-selection of firms with higher export propensity into fibre uptake.
    Keywords: Digital capabilities, Export, High-speed Internet
    JEL: F14 O33 H54
    Date: 2022–10–21
  4. By: Okunogbe,Oyebola Motunrayo; Santoro,Fabrizio
    Abstract: Many African countries struggle to collect an adequate amount of tax revenue to support neededinvestments in public services. This paper examines how African countries may take advantage of recent advances intechnology to improve tax administration. It provides an overview of the potential and challenges of different taxcategories in Africa: consumption taxes, real estate taxes, trade taxes, and income taxes. It then describes the ways inwhich technology solutions may be deployed to address these challenges by helping to identify the tax base, monitorcompliance, and facilitate compliance. Lastly, it provides insights from interviews with senior tax administratorsacross the continent on their practical experiences in adopting technology for taxation.
    Date: 2022–09–14
  5. By: OECD
    Abstract: The routing system plays a fundamental role in the operation of the Internet and its security is of critical importance to the digital security of communication networks. However, there are many examples of accidental and intentional routing disruptions and security breaches that disrupt the Internet and impact networks’ digital security. This report analyses available data to quantify the scope and scale of routing incidents occurring on the global Internet, presents some of the available security techniques to limit these incidents and considers their effectiveness. While the routing system transcends national borders, the report offers policy makers a series of concrete actions to improve routing security.
    Date: 2022–10–12
  6. By: Stjepan Srhoj; Alex Coad; Janette Walde
    Abstract: Export boosting is a policy agenda in developed and developing countries. Previous work has found that a small number of Superstars contribute disproportionally to the economy’s overall exports. Differently from Superstars, this study is the first to define high growth exporters (HGXs), provide their economic importance and depict their micro-level anatomy. By tracking HGXs in Croatia for over a quarter of a century, 44 out of 100 Superstars in 2019 were previously HGXs. Industry-wise, HGXs are concentrated in manufacturing, information and communication technology, transportation and storage sectors. HGXs are located in higher export active regions, neighboring advanced markets. HGXs represent only 0.5% of all firms and 18% of high growth firms (HGFs) in the economy, but are responsible for about 25% of new exports, and 5% of new jobs. During their growth episode, HGXs hire more employees from technology intensive industries with previous experience in exporting. They often hire on a single year work contract, and more frequently send new employees to work abroad. HGXs have the highest number of new products, and the concentration of HGXs’ main export products decreases over time, thus, the growth is driven by multiple products and the simultaneous increase in the number of new export markets. HGXs export to closer markets than Superstars, but to more distant markets than other HGFs and exporters who tend to be more active in less developed markets. HGXs tend to increase their presence in the EU Single Market, introduce new products and substantially increase their unit price.
    Keywords: exporting, firms, high growth firms, high growth exporters
    JEL: F2 D22 L1
    Date: 2022
  7. By: Lokshin,Michael M.; Ravallion,Martin; Torre,Ivan
    Abstract: The claim that social protection is a luxury good—with a national income elasticity exceedingunity—has been influential. The paper tests the “luxury good hypothesis” using newly-assembled data on social protectionspending across countries since 1995, treating the pandemic period separately, as it entailed a large expansion insocial protection efforts. While the mean income share devoted to social protection rises with income, this isattributable to multiple confounders, including relative prices, weak governance in low-income countries and accessto information-communication technologies. Controlling for these, social protection is not a luxury good. This was alsotrue during the pandemic.
    Date: 2022–09–13

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