nep-ict New Economics Papers
on Information and Communication Technologies
Issue of 2023‒03‒06
eight papers chosen by
Marek Giebel
Universität Dortmund

  1. The Internet, Search Frictions and Aggregate Unemployment By Manudeep Bhuller; Domenico Ferraro; Andreas R. Kostøl; Trond C. Vigtel
  2. Heterogeneous Adjustments of Labor Markets to Automation Technologies By Fabien Petit; Florencia Jaccoud; Tommaso Ciarli
  3. Bilateral modern services trade between India and Latin America and the Caribbean in the context of the COVID-19 pandemic By Agarwal, Prachi
  4. Effect of nutrition education on knowledge, attitude and practice (KAP) of the tribal and urban respondents on millet consumption By Junuthula, Shirisha; Lakshmi, Vijaya
  5. Pricing cyber-insurance for systems via maturity models By Henry Skeoch; David Pym
  6. Influence of Client Sophistication in Asset Valuation Practice - a Theoretical and Conceptual Framework By James Olayinka Ogunbiyi
  7. CES 2021: Tasks for Korean Industries in a Digitally Transformed World By Shim, Woojung; Kwon, Ohsung; Kim, Jongki
  8. Expanding Corporate Use of Artificial Intelligence By Choi, Mincheol; Song, Danbee; Cho, Jaehan

  1. By: Manudeep Bhuller; Domenico Ferraro; Andreas R. Kostøl; Trond C. Vigtel
    Abstract: How has the internet affected search and hiring, and what are the implications for aggregate unemployment? Answering these questions empirically has proven difficult due to selection in internet use and difficulty in measuring the search activities of both sides of the labor market. This paper overcomes these challenges by combining plausibly exogenous variation in the availability of high-speed internet in Norway with large-scale survey and administrative data on hiring firms, job seekers, and vacancies. Our empirical analysis shows that the internet expansion led more firms to recruit online and caused 9% shorter vacancy durations and 13% fewer unsuccessful hiring attempts. While the expansion increased job-finding rates by 2.4% and starting wages by 6% among the unemployed, we find no evidence of changes in job-to-job mobility or wage growth for employees. To interpret these findings, we develop and calibrate an equilibrium search model with endogenous job creation and destruction where workers decide how much search effort to exert on and off the job. Through the lens of the calibrated model, we find that better search technology is the main driving force behind our quasi-experimental evidence. Our calculations indicate that the steady-state unemployment rate fell by as much as 14% due to the broadband internet expansion.
    JEL: J21 J39 J64 J68
    Date: 2023–02
  2. By: Fabien Petit; Florencia Jaccoud; Tommaso Ciarli
    Abstract: This paper examines the labor market adjustments to four automation technologies (i.e. robots, communication technology, information technology, and software/database) in 227 regions across 22 European countries from 1995 to 2017. By constructing a measure of technology penetration, we estimate changes in regional employment and wages affected by automation technologies along with the reallocation of workers between sectors. We find that labor market adjustments to automation technologies differ according to i) the technology involved, ii) the sector of penetration, iii) the sectoral composition of the region, and iv) the region’s technological capabilities. These adjustments are driven largely by the reallocation of low-paid workers across sectors.
    Keywords: automation technology, labor market, employment reallocation, sectoral composition
    JEL: J21 O33 R23
    Date: 2023
  3. By: Agarwal, Prachi
    Abstract: The Information Technology enabled Services sector (also referred to as modern services) has been one of the fastest growing segments of India’s exports to and foreign direct investment in Latin America and the Caribbean (LAC) over the past decade. This sector also showed significant resilience during the COVID-19 pandemic, as many Indian firms were able to reinforce their digital transformation, which strengthened their growth and export potential. India’s main comparative and competitive advantages are its large educated workforce, a developed Information and communication technologies (ICT) related infrastructure, and strong innovation performance in this sector. However, imports in this sector remain more restricted both in India and LAC than those in other sectors due to various regulations. There is also scope to increase access and use of modern services businesses and individuals alike in India and LAC.
    Date: 2022–12–16
  4. By: Junuthula, Shirisha; Lakshmi, Vijaya
    Abstract: Millets plays crucial role in underdeveloped countries since their ability to grow in hostile climates, also their composition of rich micronutrients such as minerals and vitamins, higher contents of dietary fiber, essential amino acids and low-slung glucose release which will contribute to food and nutritional security of world’s population. Policy gap is existing in developed and developing countries, and educational approaches for lifestyle and healthy nourishment are required for all the stages of life, to save from the disease burden and multiple nutritional problems. Two hundred adults comprising 100 men and 100 women were selected from each of the tribal and urban populations of Telangana. A subsample of 30 was selected from each area for nutrition education intervention. A comprehensive interview questionnaire was used to gather data from tribal and urban populations. An information communication technology (ICT) module was developed on "Health benefits of millets" (Poshakala nidhulu- chirudhaanyaalu) as a nutrition education intervention in the local language, i.e., Telugu. The post intervention results were nonsignificant (P<0.05) for knowledge about millets among the tribal respondents, while urban respondents had significantly (P<0.05) increased knowledge levels. Significant (P<0.05) attitudinal change was noticed about the inclusion of millets in the diets. The consumption of millet pattern was significantly (P<0.05) improved after the intervention among the tribal males, urban males and urban females but not among the tribal females (P>0.05). Respondent’s KAP toward the millets had increased after the intervention, which indicates increased awareness and knowledge. It can be suggested to implement awareness programs on millet's health benefits to prevent metabolic disorders and improve nutritional status. Government initiatives should continue to distribute millets through the Public Distribution System (PDS) and other health-related programs.
    Date: 2023–01–30
  5. By: Henry Skeoch; David Pym
    Abstract: Risks associated with information technology systems present a complex modelling challenge, combining the disciplines of operations management, security, and economics. The challenge is to establish a representation of an organization's operational and systems architecture that allows an assessment of the security postures of its various components able to support an assessment of its insurance risk. This work proposes a socioeconomic model for cyber-insurance decisions compromised of entity relationship diagrams, security maturity models, and economic models, thereby linking systems-type and economic approaches to cyber-security assessments. The concept of a cyber-loss-adjuster is introduced, who reconciles cyber-incidents with economic losses. The work aims to bridge a number of disciplines to partly address a longstanding research challenge of accounting for organizational structure in the design and pricing of cyber-insurance. It is important to note the following: insurance companies have long experience of the magnitude and frequency of losses that arise in organizations based on their size, industry sector, and location. Consequently, their calculations of premia will start from a baseline determined by these considerations. The contribution of the methodology proposed here is to provide a framework for calculating the effects of cyber-based risk on the frequency and magnitude of losses. This is achieved through a security analysis of the relationship between the operational structure of an organization and its information systems. It also provides a consistent means for those seeking insurance to describe and understand their security posture and for an insurance company to price its offer of coverage.
    Date: 2023–02
  6. By: James Olayinka Ogunbiyi
    Abstract: Purpose: The study is aimed at creating a testable model to serve as guide in the study of the influence of client sophistication in tangible asset valuation practice, especially for developing economies, which can be used to establish and document positive and/or negative impacts of such client involvement. Subjecting the model to practical application may eventually contribute significantly to the emerging discourse about sustainable asset valuation practice.Design/Methodology/Approach: With particular reference to asset valuers in developing economies (case study of Nigeria), the study assessed and evaluated previous related studies and literature on the subject in diverse fields, both in developed and developing economies. Relevant theories, borrowed from the discipline of market research on customer satisfaction, have also been evaluated in the paper. These theories suggest how clients/customers/consumers react to product/service offerings, which reflects the level of their sophistication. Thereafter, the paper identified testable indicators and concepts from extant studies to model the influence of client sophistication in asset valuation practice. Findings: Clients' service delivery preferences are dynamic and becoming sophisticated. Advances in ICT (via the internet), increasing globalisation and internationalisation facilitate the capability of valuation clients in obtaining sophisticated knowledge and stay up to date with trending standards observed in other, more developed countries and older professions. Clients bring to fore their level of sophistication in the asset valuation requirements. Working knowledge of the dimensions, levels, and implications of client sophistication in asset valuation practice could be a significant step toward developing sustainable asset valuation practice.Research Limitation/Implication: This is a general review paper. Eventually, empirical results of the ongoing doctoral research on the matter may afford areas for more discourses.Originality/Value: The study tends to be a deeper insight and a dynamic dimension of the behavioural study of client influence in asset valuation practice in developing economies.
    Keywords: asset valuation; Influence; Satisfaction; sophistication
    JEL: R3
    Date: 2022–01–01
  7. By: Shim, Woojung (Korea Institute for Industrial Economics and Trade); Kwon, Ohsung (Korea Institute for Industrial Economics and Trade); Kim, Jongki (Korea Institute for Industrial Economics and Trade)
    Abstract: The Consumer Electronics Show in 2021 featured innovative products for the “changed-everyday” that is expected to characterize the post-COVID-19 world. Such products demonstrate that the so-called “digital transformation” is already well underway. AI is now a mandatory foundational technology across industries. Innovation is particularly visible in AI and 5G-based areas, including “home-conomy” (home + economy), bio-health, and eco-friendly technologies. This paper reviews Korea's achievements in the consumer electronics innovation space and the threats facing its industry from competitors. It also describes a suite of policy recommendations going forward.
    Keywords: CES; Consumer Electronics Show; consumer electronics; electronics; artificial intelligence; AI; innovation; semiconductors; communications equipment; telecommunications; ICT; information technology; IT; manufacturing; exports; competition; competitiveness
    JEL: L63 L68 L69 L86 L88 L96 L99 O32 O38
    Date: 2021–02–26
  8. By: Choi, Mincheol (Korea Institute for Industrial Economics and Trade); Song, Danbee (Korea Institute for Industrial Economics and Trade); Cho, Jaehan (Korea Institute for Industrial Economics and Trade)
    Abstract: Despite interest in artificial intelligence (AI) as a transformative driver of economic growth, few Korean companies use AI. Companies currently using AI are increasing their AI investments and expenditures. Companies employ AI in a wide range of functions and fields including automated operations, predictive analytics, product and service development, and sales and inventory management Challenges to the application and use of AI exist in multiple, closely-connected domains. Challenges include human capital scarcity, inadequate funding, the difficulty of acquiring technology, and both the internal and external business environments confronting companies. This work analyzes the barriers to increased corporate adoption of AI technologies and proposes a set of policy suggestions to improve AI uptake at Korean companies.
    Keywords: artificial intelligence; AI; AI adoption; productivity; firm productivity; corporate productivity; STEM; skilled labor; information technology; IT; information and communications technology; ICT; R&D; research and development; innovation; innovation policy; AI policy; regulation; personal data
    JEL: E24 H52 I28 J24 O32 O38
    Date: 2021–04–04

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