nep-ict New Economics Papers
on Information and Communication Technologies
Issue of 2022‒11‒07
29 papers chosen by
Marek Giebel
Universität Dortmund

  1. Trade, Internal Migration, and Human Capital : Who Gains from India’s IT Boom? By Ghose,Devaki
  2. ICT and Tax Administration in Sub-Saharan Africa: Adopting ITAS in Uganda and Sierra Leone By Occhiali, Giovanni; Akol, Doris; Kargbo, Philip M.
  3. Mobile Broadband Internet, Poverty and Labor Outcomes in Tanzania By Bahia,Kalvin; Castells,Pau; Masaki,Takaaki; Cruz,Genaro; Rodriguez Castelan,Carlos; Sanfelice,Viviane
  4. The Impact of Internet Access on Innovation and Entrepreneurship in Africa By Houngbonon,Georges Vivien; Mensah,Justice Tei; Traore,Nouhoum-000531164
  5. Globalisation, technology and global health By Olatunji A. Shobande; Lawrence Ogbeifun; Simplice A. Asongu
  6. Shedding light on the drivers of services tradability over two decades By Sebastian Benz; Alexander Jaax; Yoto V. Yotov
  7. Infrastructure Quality and FDI Inflows : Evidence from the Arrival of High-Speed Internet in Africa By Mensah,Justice Tei; Traore,Nouhoum-000531164
  8. The Promise and Limitations of Information Technology for Tax Mobilization By Okunogbe,Oyebola Motunrayo; Santoro,Fabrizio
  9. Developments in spectrum management for communication services By OECD
  10. Mobile internet and the rise of political tribalism in Europe By Marco Manacorda; Guido Tabellini; Andrea Tesei
  11. Demography, Capital Accumulation and Growth By Robert Stehrer; Maryna Tverdostup
  12. The Impact of Digital Infrastructure on African Development By Calderon,Cesar; Cantu,Catalina
  13. Transnational Terrorism and the Internet By Do,Quy-Toan; Gomez Parra,Nicolas; Rijkers,Bob
  14. Firm Performance, Participation in Global Value Chains and Service Inputs : Evidence from India By Manghnani,Ruchita; Meyer,Birgit Elisabeth; Saez,Juan Sebastian; Van Der Marel,Erik Leendert
  15. The Highways and Side Roads of Statistical Capacity Building By Lokshin,Michael M.
  16. Mobile Access Expansion and Price Information Diffusion : Firm Performance after Ethiopia’s Transition to 3G in 2008 By Abreha,Kaleb Girma; Choi,Jieun; Kassa,Woubet; Kim,Hyun Ju; Kugler,Maurice David
  17. Microdata Collection and Openness in the Middle East and North Africa (MENA) : Introducing the MENAMicrodata Access Indicator By Ekhator-Mobayode,Uche Eseosa; Hoogeveen,Johannes G.
  18. Can Economics Become More Reflexive ? Exploring the Potential of Mixed-Methods By Rao,Vijayendra
  19. Firm-Level Adoption of Technologies in Senegal By Cirera,Xavier; Comin,Diego Adolfo; Vargas Da Cruz,Marcio Jose; Lee,Kyungmin
  20. Integration in Global Value Chains — The Role of Service Inputs : Evidence from India By Manghnani,Ruchita; Meyer,Birgit Elisabeth; Saez,Juan Sebastian; Van Der Marel,Erik Leendert
  21. The Empirical Reality of IT Project Cost Overruns: Discovering A Power-Law Distribution By Bent Flyvbjerg; Alexander Budzier; Jong Seok Lee; Mark Keil; Daniel Lunn; Dirk W. Bester
  22. The Role of Digital Technologies in Enabling Digital Transformation to Address Societal and Business Challenges - A Sociotechnical Perspective By Wendt, Charlotte
  23. Global Transition Online By Ragoussis,Alexandros; Timmis,Jonathan David
  24. Public Debt Reporting in Developing Countries By Rivetti,Diego
  25. Addressing Vaccine Hesitancy : Survey and Experimental Evidence from Papua New Guinea By Hoy,Christopher Alexander; Wood,Terence; Moscoe,Ellen Elizabeth
  26. Improving Public Procurement Outcomes : Review of Tools and the State of the Evidence Base By Fazekas,Mihály; Blum,Jurgen Rene
  27. Trade Facilitation Provisions in Preferential Trade Agreements : Impact on Peru’s Exporters By Lee,Woori; Rocha Gaffurri,Nadia Patrizia; Ruta,Michele
  28. Where the EU stands vis-à-vis the USA and China? Corporate R&D intensity gap and structural change By MONCADA PATERNO' CASTELLO Pietro; GRASSANO Nicola
  29. Trade Impacts of Intellectual-Property-Related PTAs : Evidence from Using the World Bank Deep Trade Agreements Database By Maskus,Keith E.; Ridley,William Clifton

  1. By: Ghose,Devaki
    Abstract: How do trade shocks affect welfare and inequality when human capital is endogenous? Using an external information technology demand shock and detailed internal migration data from India, this paper first documents that both information technology employment and engineering enrollment responded to the rise in information technology exports. Information technology employment responded more when nearby regions had a higher share of college-age population. The paper then develops a quantitative spatial equilibrium model featuring two new channels: higher education choice and differential costs of migrating for college and work. The framework is used to quantify the aggregate and distributional effects of the information technology boom and perform counterfactuals. Without endogenous education, the estimated aggregate welfare gain from the export shock would have been about a third as large and regional inequality twice as large. Reducing barriers to mobility for education, such as reducing in-state quotas for students at higher education institutes, would substantially reduce inequality in the gains from the information technology boom across districts.
    Keywords: Educational Sciences,International Trade and Trade Rules,Labor Markets,Employment and Unemployment
    Date: 2021–07–27
  2. By: Occhiali, Giovanni; Akol, Doris; Kargbo, Philip M.
    Abstract: The adoption of information and communication technologies (ICTs) in the public sector, including for tax administration, has been hailed as potentially transformational over the last few decades. Its impact has been less far-reaching than imagined. A literature examining the determinants of – and obstacles to – ICT adoption arose as a result, almost exclusively focusing on the experience of high-income countries. However, understanding the experience of adoption in low-income countries is equally important, especially given the potential role that ICTs can play in tackling various development issues, including increasing mobilisation of domestic revenue. To help fill this gap, we present two in-depth case studies of the process of adopting an integrated tax administration system (ITAS) in Uganda and Sierra Leone, based on a series of semi-structured interviews with members of the respective revenue authorities and ministries of finance. Our analysis shows that many of the factors that facilitate and impede the adoption process are the same as those identified in high-income countries. However, we also identify some factors that are more likely to be relevant for low-income countries. These include the impact of the timeline for disbursing donor funding, the processes donors require to be used for procurement, and the quality of legacy data to be migrated into the new system. The need to embark on change management and re-engineering business processes was also recognised more fully than might have been expected in countries with relatively little prior experience in e-government services.
    Keywords: Finance, Technology,
    Date: 2022
  3. By: Bahia,Kalvin; Castells,Pau; Masaki,Takaaki; Cruz,Genaro; Rodriguez Castelan,Carlos; Sanfelice,Viviane
    Abstract: What are the impacts of expanding mobile broadband coverage on poverty, household consumption and labor market outcomes in developing countries? Who benefits from improved coverage of mobile internet? To respond to these questions, this paper applies a difference-in-differences estimation using panel household survey data combined with geospatial information on the rollout of mobile broadband coverage in Tanzania. The results reveal that being covered by 3G networks has a large positive effect on total household consumption and poverty reduction, driven by positive impacts on labor market outcomes. Working age individuals living in areas covered by mobile internet witnessed an increase in labor force participation, wage employment, and non-farm self-employment, and a decline in farm employment. These effects vary by age, gender and skill level. Younger and more skilled men benefit the most through higher labor force participation and wage employment, while high-skilled women benefit from transitions from self-employed farm work into non-farm employment.
    Keywords: Information Technology,Telecommunications Infrastructure,Inequality,Employment and Unemployment,Wages, Compensation&Benefits
    Date: 2021–08–17
  4. By: Houngbonon,Georges Vivien; Mensah,Justice Tei; Traore,Nouhoum-000531164
    Abstract: This paper investigates the effects of access to high-speed internet on innovation andentrepreneurship in Africa. The identification strategy exploits the staggered arrival of submarine internet cablesto the coast of Africa and the subsequent rollout of terrestrial fiber network across the continent. The findingsshow a positive effect of access to high-speed internet on innovation at the firm level, with availability of digitalskills within the firm playing a key role in the internet-innovation nexus. The paper also finds evidence ofinternet-induced entrepreneurship: the probability that a household establishes a non-farm business increases whenconnected to the internet. However, the increase in entrepreneurial activities is largely concentrated in theservice sector.
    Keywords: Marketing,Private Sector Development Law,Private Sector Economics,Labor Markets,Common Carriers Industry,Food & Beverage Industry,General Manufacturing,Pulp & Paper Industry,Construction Industry,Business Cycles and Stabilization Policies,Textiles, Apparel & Leather Industry,Plastics & Rubber Industry,Telecommunications Infrastructure,Information Technology
    Date: 2022–02–23
  5. By: Olatunji A. Shobande (University of Aberdeen, UK); Lawrence Ogbeifun (University of Mississippi, USA); Simplice A. Asongu (Yaoundé, Cameroon)
    Abstract: This study explored whether globalisation and technology are harmful to health for a global panel dataset of 52 countries for the period of 1990–2019. The study focused on four continents: Africa, the Americas, Asia/Oceania, and Europe. We used four advanced econometric methodologies, which include the standard panel fixed effect (FE), Arellano-Bover/Blundell-Bond dynamic panel analysis, Hausman-Taylor specification, and Two-Stage Least Squares (FE-2SLS)/Lewbel-2SLS approach. Our empirical evidence highlights the significance of globalisation and technology in promoting global health. Our findings are not only of interest because it suggests that globalisation has varied impact on global health indicators, but they indicate that technology is useful in tracking, monitoring, and promoting global health. In addition, our empirical evidence indicates that a truly health-centered process of globalisation and technological innovation can only be realised by ensuring that the interests of countries and vulnerable populations to health risks are adequately considered in international decision-making regarding global economic integration. We suggest that achieving the aspiration of global health will entail the use of globalisation and information technology to extend human activities and provide equal access to global health.
    Keywords: globalisation; technology; global health
    Date: 2022–01
  6. By: Sebastian Benz (OECD); Alexander Jaax (OECD); Yoto V. Yotov (Drexel University)
    Abstract: Services have become significantly more tradable in the first two decades of the 21st century. This paper documents that trade costs for financial services, communication services and business services fell by between 30% and 60% between 2000 and 2019. Information and communication technology and growth of air traffic have acted as key drivers of this development. While there is some variation across sectors, the analysis suggests that these two determinants jointly account for a quarter to half of the aggregate decline in trade costs for services during this 20-year period. Furthermore, services provisions in regional trade agreements (RTAs) can explain between 3% and 14% of the reduction in trade costs for communications services and financial and insurance services. These findings demonstrate the importance of whole-of-government strategies to promote services trade competitiveness, inter alia market access, regulatory reform, as well as investment in physical and digital infrastructure and adoption of new technologies.
    Keywords: Digital trade, Digitalisation, Services trade, Trade costs, Trade liberalisation, Trade policy
    JEL: F13 F14 F15 O33 F68
    Date: 2022–10–20
  7. By: Mensah,Justice Tei; Traore,Nouhoum-000531164
    Abstract: Does ambient infrastructural quality affect foreign direct investment (FDI) in developingcountries This paper investigates how the arrival of high-speed internet in Africa triggered FDI into the bankingand technology services sectors. It also explores the role of complementary infrastructure, such as access to reliableelectricity, in amplifying the impact of internet connectivity on investment. The identification strategyexploits plausibly exogenous variations in access to high-speed internet induced by the staggered arrival ofsubmarine fiber-optic internet cables and the subsequent rollout of terrestrial fiber cable networks across locationson the continent. Findings from the paper show that access to high-speed internet induces FDI into the banking andtechnology sectors. However, the impact pertains mainly to countries with access to reliable electricity, thushighlighting the role of complementarities in the impact of infrastructure.
    Keywords: Energy Policies & Economics,Telecommunications Infrastructure,Financial Sector Policy,International Trade and Trade Rules,Investment and Investment Climate
    Date: 2022–02–23
  8. By: Okunogbe,Oyebola Motunrayo; Santoro,Fabrizio
    Abstract: Tax revenue in many low- and middle-income countries is inadequate for fundinginvestments in public goods and human capital. With high levels of informality and limited state capacity, many taxauthorities have difficulty determining the true tax base and collecting taxes efficiently and equitably. Taxauthorities are increasingly adopting new technologies to improve administrative processes, reduce taxpayer compliancecosts, and enhance their overall effectiveness. This paper reviews the recent literature on the use of technology fortax administration. It highlights the potential of technology to improve tax collection by helping to identifythe tax base, monitor compliance and facilitate compliance. It also identifies possible limitations to the use oftechnology arising from inadequate infrastructure and connectivity, lack of adoption or resistance by taxpayersand tax collectors, lack of institutional mainstreaming, and an unsupportive regulatory environment.
    Keywords: Economic Adjustment and Lending,Taxation & Subsidies,Macro-Fiscal Policy,Public Finance Decentralization and Poverty Reduction,Public Sector Economics,Tax Administration,Tax Law,Financial Structures,Information Technology
    Date: 2021–11–15
  9. By: OECD
    Abstract: Spectrum is a limited national resource that enables our digital world. Mobile broadband services rely on these invisible airwaves to function, making spectrum indispensable to bridge connectivity divides. It also supports the provision of wireless services across the economy, from education to healthcare to industry, and enables applications such as satellites, GPS and the Internet of Things. Spectrum must be efficiently managed to achieve broader social and economic goals. As such, the stakes of spectrum management decisions are high and the challenges complex. This report discusses the effective stewardship of this essential asset in the context of wireless communication services, presents trends in policy, and discusses future considerations for management. It finds that well-designed and transparent licensing regimes, including auctions, foster investment and innovation, and that flexible frameworks (e.g. sharing or unlicensed spectrum) can promote efficient use.
    Date: 2022–10–20
  10. By: Marco Manacorda; Guido Tabellini; Andrea Tesei
    Abstract: We study the political effects of the diffusion of mobile Internet between 2007 and 2017, using data on electoral outcomes and on mobile Internet signal across the 84,564 municipalities of 22 European countries. We find that access to mobile Internet increased voters' support for right-wing populist parties and for parties running on extreme socially conservative platforms, primarily in areas with greater economic deprivation. Using survey data, we also show that mobile Internet increased communitarian attitudes, such as nationalism and dislike of strangers and minorities. We conclude that mobile Internet benefitted right-wing populist parties because, in line with findings in social psychology, it fostered offline tribalism.
    Keywords: populism, communitarianism, Europe, mobile internet
    Date: 2022–10–14
  11. By: Robert Stehrer (The Vienna Institute for International Economic Studies, wiiw); Maryna Tverdostup (The Vienna Institute for International Economic Studies, wiiw)
    Abstract: Europe will be challenged by demographic changes over the next few decades, even under favourable assumptions about fertility and migration, but the economic effects are not yet fully understood. This paper studies the effects of population ageing on economic growth, capital deepening and robotisation in 27 European Union (EU) labour markets. First, we econometrically assess the effects of ageing and potential labour market shortages on growth. Second, we test the hypothesis of whether ageing leads to faster adoption of new technologies. We distinguish between various capital asset types, including non-ICT and ICT capital, tangible and intangible capital and the adoption of robots. The analysis is based on Eurostat, the European Labour Force Survey (EU-LFS) and International Federation of Robotics (IFR) data. Results indicate that ageing and demographic changes might contribute to secular stagnation, which decelerates the adoption of new technologies.
    Keywords: aging, growth, capital accumulation, new technologies, secular stagnation
    JEL: J11 O33
    Date: 2022–10
  12. By: Calderon,Cesar; Cantu,Catalina
    Abstract: This paper estimates the impact of digital infrastructure on economic growth and its sources.The analysis uses system generalized method of moments and finds evidence of a causal impact from the digitalinfrastructure variables to economic growth, its sources, income inequality, and poverty. The findings show thatmobile connections have an impact on economic growth through the total factor productivity growth channel, while internetusers drive it by the capital accumulation channel. Connections have a negative effect on the Gini coefficient,and internet users have a negative effect on the poverty headcount. The analysis also finds that human capital andaccess to electricity are important complementarities for digital infrastructure to reap benefits. There would belarge economic gains if Africa were to close the digital infrastructure gap relative to other regions, yet there aresome issues of affordability and skills that need to be addressed to reduce the usage gap and the digital divideacross gender, rural-urban, and firm size.
    Keywords: Economic Growth,Industrial Economics,Economic Theory & Research,Inequality,Information Technology,Telecommunications Infrastructure
    Date: 2021–11–18
  13. By: Do,Quy-Toan; Gomez Parra,Nicolas; Rijkers,Bob
    Abstract: Does the internet enable the recruitment of transnational terrorists Using geo-referencedpopulation census data and personnel records from the Islamic State in Iraq and the Levant—a highly tech-savvyterrorist organization—this paper shows that internet access has facilitated the organization’s recruitment of foreignfighters from Tunisia. The positive association between internet access and Daesh recruitment is robust tocontrolling for a large set of observable and unobservable confounders as well as instrumenting internet access rateswith the incidence of lightning strikes.
    Keywords: International Terrorism & Counterterrorism,Armed Conflict,Educational Sciences,Urban Housing and Land Settlements,Urban Housing,Urban Governance and Management,Municipal Management and Reform,ICT Applications,Coastal and Marine Resources,Energy and Natural Resources
    Date: 2021–12–15
  14. By: Manghnani,Ruchita; Meyer,Birgit Elisabeth; Saez,Juan Sebastian; Van Der Marel,Erik Leendert
    Abstract: This paper explores the relationship between the use of service inputs, participation in globalvalue chains, and firm productivity. Services play the role of both an intermediate input in production and acoordinator. Using a detailed Indian firm-level data set from 1990–2017, the paper estimates the productivity premiumassociated with varying depths of global value chain integration and different intensities and types of servicesused in the production. The study finds that firms in global value chains have a productivity premium between 13 and 22percent relative to domestic firms, with some variation based on the depth of global value chain integration and thesector to which the firm belongs. Both the type of service inputs used (composition of services) and the origin ofservices (whether sourced domestically or from abroad) matter for firm performance. While higher aggregate serviceinput use (as captured by the share of expenditure on service inputs) is not necessarily associated with anincrease in productivity, increased use of complex services and information technology services is associated withhigher productivity. The use of imported services is associated with higher productivity. Moreover, firms thatare more deeply integrated in global value chains benefit more from importing services.
    Keywords: Food & Beverage Industry,Construction Industry,Plastics & Rubber Industry,Business Cycles and Stabilization Policies,Common Carriers Industry,General Manufacturing,Textiles, Apparel & Leather Industry,Pulp & Paper Industry,International Trade and Trade Rules,Industrial and Consumer Services and Products,Transport and Trade Logistics,Financial Sector Policy
    Date: 2021–10–19
  15. By: Lokshin,Michael M.
    Abstract: This paper proposes an approach to guide statistical capacity building in developing countries using an analysis based on components of the World Bank’s Statistical Performance Indicator on a sample of 215 countries. The approach demonstrates the importance of expanding traditional capacity-building activities to include programs to strengthen and better monitor user demand for data. Based on this analysis, the paper recommends a two-step strategy for building and enhancing the sustainable statistical capacity of national statistical systems in developing countries. The strategy creates a sustainable trajectory for developing national statistical systems that meet the growing demands of local and global data users. The paper emphasizes the importance of donor coordination and South-South learning initiatives for international capacity-building efforts.
    Keywords: ICT Policy and Strategies,ICT Legal and Regulatory Framework,Educational Sciences,Economic Growth,Industrial Economics,Economic Theory&Research
    Date: 2021–08–31
  16. By: Abreha,Kaleb Girma; Choi,Jieun; Kassa,Woubet; Kim,Hyun Ju; Kugler,Maurice David
    Abstract: This paper investigates whether enhanced access to mobile communications, including internet, primarily through smart phones, increases competition as price information is more widely available to customers—both households and firms. The exogenous shock to identify these impacts is the transition from 2G to the 3G broadband network standard in 2008, and the induced changes in the geographic variation across districts of data plan availability for households. The operational mechanism is that better household and firm telecommunications access can close information asymmetry gaps between buyers and sellers, with increased competition leading to improved firm performance. Lower markups and reduced price dispersion can result from better incentives for firms to preserve and grow market share. And as price competition squeezes profit margins, there are more incentives for firms to reduce costs—inducing higher total factor productivity growth. Improved firm performance can generate jobs and economic transformation. Indeed, faster productivity growth, due to enhanced access for buyers to mobile telecommunications, can translate into higher formal employment and wages. One open question is whether the potential competition, driven by the increased mobile telecommunications access of buyers, which help them have the best alternative prices at their fingertips, will also impact export-oriented companies. The prior is that the firm performance improvement effect would be more salient for firms mostly focused on local markets. The primary data sources are manufacturing firm census data and household expenditure survey data across woredas (districts or counties) in Ethiopia. First, the paper investigates the relation between expanded access with the 3G network to price information through mobile phones (measured at the woreda level as share of households with substantive expenditure to access data through smartphones) and firm performance measures (markups, total factor productivity, labor productivity, wage growth, wage gaps and employment growth.), across districts with different shares of mobile telecommunication and data plan penetration subscription. The paper estimates models with difference-in-differences and triple differences. The evidence is consistent with competition intensification after the improvement in access to mobile communication due to the 3G network rollout. In particular, markups were reduced and there was higher growth in productivity, wages, and employment.
    Keywords: Food&Beverage Industry,General Manufacturing,Textiles, Apparel&Leather Industry,Pulp&Paper Industry,Common Carriers Industry,Construction Industry,Business Cycles and Stabilization Policies,Plastics&Rubber Industry,Information Technology,Telecommunications Infrastructure,Labor Markets
    Date: 2021–08–23
  17. By: Ekhator-Mobayode,Uche Eseosa; Hoogeveen,Johannes G.
    Abstract: This paper uses a “mystery client” approach and visits the websites of national statisticaloffices and international microdata libraries to assess whether foundational microdata sets for countries in theMiddle East and North Africa region are collected, up to date, and made available to researchers. The focus is onpopulation and economic censuses, price data and consumption, labor, health, and establishment surveys.Following the exercise, a new microdata access indicator that measures the degree of opennes of microdata and theease with which microdata users can understand and navigate the websites of national statistical offices is presented.The results show that about half of the expected core data sets are being collected and that only a fraction is madeavailable publicly. As a consequence, many summary statistics, including national accounts and welfareestimates, are outdated and of limited relevance to decision makers. Additional investments in microdata collection andpublication of the data once collected are strongly advised. National statistical offices in the region should makeconsiderable improvements to the outlook of their websites to make them more user friendly. Specifically, microdatalibraries and updated survey calendars should be a standard feature of the websites to ensure easy access to available microdata.
    Keywords: ICT Policy and Strategies,ICT Legal and Regulatory Framework,Health Care Services Industry,Inequality,Employment and Unemployment,Labor & Employment Law
    Date: 2021–12–29
  18. By: Rao,Vijayendra
    Abstract: This paper argues that Economics can learn from Cultural Anthropology and Qualitative Sociologyby drawing on a judicious mix of qualitative and quantitative methods to become more “reflexive.” It arguesthat reflexivity, which helps reduce the distance between researchers and the subjects of their research, has four keyelements: cognitive empathy, the analysis of narratives (potentially enhanced by machine learning), understandingprocess, and participation (involving respondents in research). The paper provides an impressionistic andnon-comprehensive review of mixed-methods relevant to development economics and discrimination to illustrate these points.
    Keywords: Human Rights,Gender and Development,Financial Sector Policy,Social Cohesion,ICT Applications
    Date: 2022–01–28
  19. By: Cirera,Xavier; Comin,Diego Adolfo; Vargas Da Cruz,Marcio Jose; Lee,Kyungmin
    Abstract: Technology is key to boost productivity and generate more and better quality jobs in Senegal. This paper uses a novel approach to measure technology adoption at the firm level and applies it to a representative sample of firms in Senegal. It provides new measures of technology adoption at the firm level, which identify the purposes for which technologies are used and analyzes some of the key barriers to improving technology adoption at the firm level in Senegal. First, the adoption of general-purpose information and communications technologies, such as computers, the internet, and cloud computing for business purpose, is low but very heterogeneous and positively associated with size and formal status. Second, most firms still rely on pre-digital technologies to perform general business functions, such as business administration, production planning, supply chain management, marketing, sales, and payment. Third, most firms, including large and formal firms, still rely on manual methods or manually operated machines to perform critical pro duction tasks that are sector specific, such as harvesting in agriculture or packaging in food processing. The paper presents evidence of three main challenges to improve technology adoption: access to finance, information, and knowledge (firm capabilities), and access to markets and competition.
    Keywords: Food Security,Energy Policies&Economics,Agricultural Irrigation and Drainage,Irrigation and Drainage,Livestock and Animal Husbandry,Textiles, Apparel&Leather Industry,Pulp&Paper Industry,Plastics&Rubber Industry,Food&Beverage Industry,Common Carriers Industry,Construction Industry,Business Cycles and Stabilization Policies,General Manufacturing
    Date: 2021–05–12
  20. By: Manghnani,Ruchita; Meyer,Birgit Elisabeth; Saez,Juan Sebastian; Van Der Marel,Erik Leendert
    Abstract: This paper investigates the relationship between the use of service inputs andintegration in global value chains. Using macro and detailed firm-level data (for 1990–2017), the study documents theextent of India’s integration into global value chains. Older, larger, and more productive firms and firms with ahigher leverage ratio are more likely to be deeply integrated into global value chains. Firms in theinformation technology services and electronics industry are more deeply integrated into global value chains, comparedwith textiles. Services are the engine for many global value chain industries as they help coordinate the differentstages of production across geographical locations. The findings suggest that both the intensity of service usage aswell as the composition or type of service used are important. Firms using service inputs, particularly complexservices and information technology and information technology–enabling services intensively are typically moredeeply integrated into global value chains.
    Keywords: Common Carriers Industry,Food & Beverage Industry,Business Cycles and Stabilization Policies,Pulp & Paper Industry,Plastics & Rubber Industry,Construction Industry,General Manufacturing,Textiles, Apparel & Leather Industry,International Trade and Trade Rules,Industrial and Consumer Services and Products,Transport and Trade Logistics,Transport Services
    Date: 2021–10–19
  21. By: Bent Flyvbjerg; Alexander Budzier; Jong Seok Lee; Mark Keil; Daniel Lunn; Dirk W. Bester
    Abstract: If managers assume a normal or near-normal distribution of Information Technology (IT) project cost overruns, as is common, and cost overruns can be shown to follow a power-law distribution, managers may be unwittingly exposing their organizations to extreme risk by severely underestimating the probability of large cost overruns. In this research, we collect and analyze a large sample comprised of 5,392 IT projects to empirically examine the probability distribution of IT project cost overruns. Further, we propose and examine a mechanism that can explain such a distribution. Our results reveal that IT projects are far riskier in terms of cost than normally assumed by decision makers and scholars. Specifically, we found that IT project cost overruns follow a power-law distribution in which there are a large number of projects with relatively small overruns and a fat tail that includes a smaller number of projects with extreme overruns. A possible generative mechanism for the identified power-law distribution is found in interdependencies among technological components in IT systems. We propose and demonstrate, through computer simulation, that a problem in a single technological component can lead to chain reactions in which other interdependent components are affected, causing substantial overruns. What the power law tells us is that extreme IT project cost overruns will occur and that the prevalence of these will be grossly underestimated if managers assume that overruns follow a normal or near-normal distribution. This underscores the importance of realistically assessing and mitigating the cost risk of new IT projects up front.
    Date: 2022–09
  22. By: Wendt, Charlotte
    Abstract: The ubiquity of digital technologies in everyday professional and non-professional life is increasingly blurring the line between physical and digital worlds and inducing changes in society and industry, which are summarized under the term digital transformation (DT). At the societal level, formerly non-digital decision contexts (e.g., health, resource consumption) are now becoming digital technology-enabled and connected (e.g., smart health trackers, smart home solutions) and have the potential to influence individuals’ decision-making and behavior. By allowing for data collection, processing, and retrieval, digital technologies can facilitate more conscious decisions and sustainable behaviors, both being important levers for addressing societal challenges such as achieving sustainable health or sustainable resource consumption. However, for digital technologies to realize their full potential, their impact on individuals using the digital technology-enabled devices also needs to be considered, including impacts on decision-making processes, trusting beliefs, and user perceptions like perceived usefulness. Therefore, we require a good understanding of both, the technical component (i.e., digital technologies) and the social component (i.e., individuals, society, organizations) which together form a sociotechnical system, also referred to as an information system (IS) artifact. Such a sociotechnical perspective is also relevant for DT on an organizational level, where digital technologies are increasingly used to innovate an organization’s business model (i.e., its products, processes, and value proposition) to stay competitive in a rapidly changing environment. For example, organizations adopt information and communication technologies (ICTs) to enable virtualized work practices and collaboration (e.g., remote maintenance, virtual site visits) to address business challenges caused by disruptions in their environment. However, technology adoption requires significant financial and human resources, and not every available technology is tailored to the needs of every organization. Combined with low success rates for organizational DT, we require a better understanding of the opportunities and challenges digital technologies present, as well as of how their adoption enables successful DT. Taken together, this thesis is motivated by two overarching research questions focusing on how digital technologies can be used to enable societal DT to address societal challenges, and how digital technologies can be used by organizations to enable organizational DT to cope with business challenges. Against this backdrop, five studies were conducted and published as part of this dissertation. The first three articles relate to the societal context and investigate how decision support systems (DSS) and Green IS artifacts influence individuals’ decision-making and behavior to address two pressing sustainability challenges of society: achieving sustainable health through managing societal crises like the COVID-19 pandemic and achieving sustainable resource consumption to contribute to the globally agreed sustainable development goals. The fourth and fifth article relate to the organizational context and examine the adoption of ICTs and immersive technologies in small and medium-sized enterprises (SMEs) that aim to overcome business challenges (e.g., comply with government regulations, adapt to changing market requirements) through organizational DT. More specifically, the first article investigates how individuals searching for a medical practice to go to can be assisted by a DSS providing crowding information (i.e., how busy a location is) complemented by a temporal cue (i.e., how timely the information was retrieved). Users of such DSS can consider crowding information in their decision-making, which is relevant because crowds represent an increased risk of infection – particularly in light of the COVID-19 pandemic. The results reveal that the presence of crowding information leads to a selection of less crowded locations and that this effect is strengthened by temporal cues indicating a timely (i.e., close to real-time) retrieval of such information. Moreover, the effect of timely crowding information on users’ decision-making is strongest for users with low (vs. high) health anxiety, a particularly relevant moderator in this research context. The second and third article relate to the societal challenge of achieving more sustainable resource consumption in private households. They investigate how individuals can be motivated to reduce their resource consumption through a Green IS artifact that allows them to set a consumption goal. To that end, the second article examines the effect of one’s relative performance (i.e., performing better or worse than others) and a goal’s evaluative standard (i.e., a goal referring to one’s own or others’ consumption intensity). The results demonstrate that individuals who perform worse than others reduce their resource consumption to a higher degree with a goal referring to others than with a goal referring to themselves. In contrast, better-performing individuals reduce their resource consumption more fiercely with a goal referring to themselves than with a goal referring to others. These findings are confirmed by the third article. However, the third article goes beyond the results of the previous study by examining two additional goal-related design features: goal incentives (i.e., collaboration vs. competition) and a goal’s reference group (i.e., anonymous vs. familiar others). The results show that individuals have a personal preference for a particular goal incentive, with individuals who prefer collaboration showing a preference for familiar collaborators, whereas those who prefer competition generally prefer anonymous competitors. The fourth article shifts the focus to the organizational context and on how ICTs enable SMEs from the event industry to innovate their business model to respond to business challenges caused by environmental disruptions such as the COVID-19 pandemic. The results demonstrate the importance of evaluating digital technologies on the basis of affordances (i.e., opportunities) and constraints (i.e., hinderances) and from the perspective of different relevant stakeholders (i.e., SMEs and their customers). In terms of enabling new business models to cope with the COVID-19 pandemic in the short and medium term, readily available ICTs exhibit greater affordances and, more decisively, weaker constraints than more sophisticated ICTs and thus are preferred by SMEs in the event industry and their customers. The fifth article examines the adoption of immersive technologies (e.g., augmented and virtual reality technologies) in manufacturing SMEs. The results demonstrate that the consideration of different stakeholder perspectives (e.g., SMEs, suppliers) and particularly the consideration of existing constraints play a critical role in the overall assessment of digital technologies for their use in organizational DT. In addition, the findings reveal which measures are essential to overcome existing constraints in order to reach organizational, actor, environmental, and technological readiness to enable SMEs to realize the affordances of digital technologies. Overall, this dissertation provides an advanced understanding of how digital technologies enable DT in society and industry, thereby allowing for ways to address societal and business challenges. The studies comprised in this thesis contribute to research on user behavior and decision-making in digital environments by highlighting the influential role of crowding information, temporal cues, and personalized goal-related design features on users’ real-world behavior. Moreover, the results contribute to research on DT and organizational technology adoption by allowing for a more holistic understanding of the role of technology affordances and constraints as success factors for digital technology adoption in SMEs. Apart from these contributions to research, this thesis also offers valuable insights and actionable recommendations for practitioners looking for ways to manage societal or business challenges. Specifically, design recommendations for designers of DSS and Green IS artifacts are provided to address societal challenges, along with guidance for managers and executives of SMEs who are facing business challenges and are looking for ways to succeed in their organizational DT.
    Date: 2022
  23. By: Ragoussis,Alexandros; Timmis,Jonathan David
    Abstract: This paper presents new evidence on the growth of digital technology in response to the COVID-19pandemic. It uses the largest and most comprehensive database available to analyze website birth dynamics and theuptake of website technologies. The database comprises 150 million active websites and 27,000 technologies. Thefindings show that, over 2020, there was rapid adoption of both e-commerce and online payments across all countries,with greatest rates of adoption in countries that had lower initial levels of technology use. The timing of COVID-19lockdowns strongly predicts increased use of these technologies, accounting for about a third of the overallincrease in e-commerce or online payments usage over 2020. More importantly the shock appears to have resulted in ashift in trend more so than a shift in level, suggesting that COVID-19 may have transformed the trajectory of onlinemarket growth.
    Keywords: Information Technology,International Trade and Trade Rules
    Date: 2022–03–03
  24. By: Rivetti,Diego
    Abstract: More than 20 developing countries do not publish any data on their sovereign debt. In those thatdo disclose data, public debt statistics usually do not comply with international standards in terms of coverage anddefinitions. Some information can be deduced through indirect disclosure of debt statistics to external agents,such as the World Bank and the International Monetary Fund, and this can help minimize data gaps. This paper has twomain objectives. First, it measures the extent of transparency in direct reporting and identifies the factorsthat promote it. The results show that debt transparency is fostered by standardized recording and reporting systems,high levels of external scrutiny (for example, Eurobond issuance and ratings), and the presence of highly skilledstaff at the local debt office. Second, the paper describesthe reporting ecosystem in which two type of channels (direct and indirect) coexist and provides novel estimatesof the data gaps across the two. Cross-comparison of direct reporting and the World Bank–International Monetary FundDebt Sustainability Analysis shows that deviations in public debt stocks can represent up to 30 percent of national grossdomestic product. Based on these results, the paper puts forward a call for action to (i) improve debt transparencyby focusing on those factors that best promote transparency; (ii) shifting the focus of multilateral development banks’operations and technical assistance from indirect to direct reporting; (iii) introducing minimum but enforceableinternational standards for direct reporting; and (iv) promoting the use of modern and integrated debt recordingand reporting systems.
    Keywords: External Debt,Strategic Debt Management,Debt Markets,Democratic Government,Public Sector Administrative and Civil Service Reform,Public Sector Administrative & Civil Service Reform,De Facto Governments,Financial Sector Policy,ICT Applications,Macro-Fiscal Policy,Public Finance Decentralization and Poverty Reduction,Public Sector Economics,Economic Adjustment and Lending
    Date: 2022–01–31
  25. By: Hoy,Christopher Alexander; Wood,Terence; Moscoe,Ellen Elizabeth
    Abstract: This paper examines the drivers of COVID-19 vaccine hesitancy and tests various means ofincreasing people’s willingness to receive a COVID-19 vaccine. The study draws on data collected through a broadlyrepresentative phone survey with 2,533 respondents and an online randomized survey experiment with 2,392 participantsin Papua New Guinea. Both surveys show that less than 20 percent of the respondents who were aware a vaccine existedwere willing to be vaccinated. The main reason respondents stated for their hesitancy regarding the vaccine was concernabout side effects; however, the majority also said health workers could change their mind, particularly if informationwas communicated in person. The phone survey illustrated that people’s level of trust in the vaccine and theirbeliefs about the behavior of others are strongly associated with their intention to get a COVID-19 vaccine. In contrast,people’s concern about COVID-19, most trusted source of information (including social media), and vaccinationhistory were unrelated to their intention to get vaccinated. The online experiment showed that a message that emphasizedthe relative safety of the vaccine by highlighting that severe side effects are rare, while also emphasizing thedangers of COVID-19, increased intention to get vaccinated by around 50 percent. Collectively, these results suggestthat policy makers would be well placed to direct their efforts to boosting the general population’s trust thatgetting vaccinated substantially reduces the risk of severe illness or death from COVID-19.
    Keywords: Early Child and Children's Health,Public Health Promotion,Immunizations,Disease Control & Prevention,Reproductive Health,Health Care Services Industry,ICT Applications,Educational Sciences
    Date: 2021–11–05
  26. By: Fazekas,Mihály; Blum,Jurgen Rene
    Abstract: Considering that about 15 percent of global gross domestic product flows through public procurement systems, the lack of systematic evidence on what works in this field is a major challenge for effective policy making. Hence, this paper systematically reviews the state of the evidence on major public procurement reforms and their impact on value for money and open access to public tenders. It discusses the reliably identified costs and benefits and systematically evaluates the quality of the evidence base, relying on academic and policy literature. The quality of evidence on the impact of public procurement interventions is mediocre, with reliable evidence established in multiple countries using diverse analytical methods only for selective, typically narrow tools. Although there is a range of policy tools with global policy interest and extensive implementation record, these have received little to no evaluation. As high-quality research uses different outcome measures, comparing intervention effectiveness is only possible for a very narrow outcome: savings. Comparing intervention types according to their effects on savings, centralized procurement and framework agreements stand out with the largest effects, over 50 percent. Most other intervention types were documented to achieve about 5-10 percent price savings if they were well implemented. Given the estimated US$11 trillion spent on procurement annually around the world, even savings of 1 percent amounts to US$110 billion annually. This systematic review points out that research on e-procurement and its variants, transparency portals, civil society supervision, and opening up the black box of public management, among others, would deserve considerably more research going forward.
    Keywords: Legal Reform,Social Policy,Regulatory Regimes,Judicial System Reform,Legal Products,Legislation,Public Sector Economics,Public Finance Decentralization and Poverty Reduction,Public Financial Management,Public Sector Administrative&Civil Service Reform,Public Sector Administrative and CivilService Reform,Democratic Government,De Facto Governments,ICT Applications
    Date: 2021–06–08
  27. By: Lee,Woori; Rocha Gaffurri,Nadia Patrizia; Ruta,Michele
    Abstract: Trade facilitation measures that simplify, modernize, and harmonize export and import processes are particularly important in a world of global value chains where goods cross borders multiple times. At the firm level, trade facilitation commitments in preferential trade agreements can generate larger gains for firms participating in global value chains, as these firms can benefit both from efficiency enhancement at their own border (when importing inputs) and at the partner countries’ borders (when exporting). This paper uses Peruvian customs data to investigate the heterogeneous impact of trade facilitation provisions across firms, depending on their global value chain linkages. The results show that trade facilitation provisions in preferential trade agreements promote the export performance of global value chain firms, especially when they import inputs from the preferential trade agreement partner country. In the case of Peru, the main benefit of trade facilitation provisions results from efficiency enhancements at its own border, allowing global value chain firms to import inputs in a more timely and predictable manner.
    Keywords: International Trade and Trade Rules,Trade Facilitation,Trade Policy,ICT Applications,Industrial and Consumer Services and Products
    Date: 2021–05–24
  28. By: MONCADA PATERNO' CASTELLO Pietro (European Commission - JRC); GRASSANO Nicola (European Commission - JRC)
    Abstract: This Brief explores the longstanding deficit in the EU’s overall corporate R&D intensity compared with that of competing economies over the last decade. The main results indicate the following: The EU business sector is still leading in traditional medium-tech sectors, such as automobiles and parts. As for the US and China, they are much stronger in newer high-tech sectors, and have maintained and even increased their strength in the last decade. For the EU, this causes a lower overall share of net sales and of R&D investment in sectors of high R&D intensity, compared with the full sample (all sectors). Consequently, there is a lower impact on the aggregate (all sectors) result for EU R&D intensity. The EU has a small number of global players in key sectors of high R&D intensity, such as biotechnology and ICT. The sample of top EU R&D investing companies is ahead in the production of green patents related to climate change technologies, as compared with the US and China. Tailored policies should also foster the speed of structural (sectoral) change towards sectors that are more R&D intensive, including some emerging ones, for example artificial intelligence and renewable energies. This will help the creation and growth of more firms in such sectors.
    Keywords: EU vs China vs USA, Corporate R&D intensity gap, structural change
    Date: 2022–09
  29. By: Maskus,Keith E.; Ridley,William Clifton
    Abstract: This paper uses the World Bank database on deep trade agreements to demonstrate the rapid increase in preferential trade agreements with standards of intellectual property protection that are enforceable and elevated beyond the minimums required in the World Trade Organization Trade-Related Aspects of Intellectual Property Rights Agreement. These accords are referred to as intellectual property–related preferential trade agreements. The paper sets out a treatment-control econometric approach, in which treated agreements are defined by various characteristics and the control group is other preferential trade agreements. This approach is used to study whether membership in intellectual property–related preferential trade agreements affects a country’s trade with nonmember countries. For this purpose, the paper defines a set of industries that intensively use intellectual property rights (the high-intellectual property group) and a set of industries that do not (the low-intellectual property group). There is evidence that countries in these agreements with the United States, the European Union, or the European Free Trade Association experience significant increases in third-country aggregated exports of biopharmaceuticals at all levels of income, while exports of low-intellectual property goods are relatively diminished, compared with the control preferential trade agreements. This result is reinforced using detailed bilateral sectoral trade and holds also for exports of medical devices from higher-income economies. Because these industries are the target of many elevated standards in intellectual property–related preferential trade agreements, the result suggests that these policies affect trade volumes. Further exploratory analysis suggests that these impacts are associated with higher local sales of affiliates of multinational firms, using US data. These are viewed as preliminary findings that point to the need for further analysis.
    Keywords: International Trade and Trade Rules,Information Technology,Intellectual Property Rights,Legal Products,Common Property Resource Development,Social Policy,Regulatory Regimes,Legal Reform,Real&Intellectual Property Law,Legislation,Judicial System Reform,Information Security&Privacy,Pharmaceuticals Industry,Pharmaceuticals&Pharmacoeconomics
    Date: 2021–05–12

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