nep-ict New Economics Papers
on Information and Communication Technologies
Issue of 2023‒04‒10
five papers chosen by
Marek Giebel
Universität Dortmund

  1. A portrait of AI adopters across countries: Firm characteristics, assets’ complementarities and productivity By Flavio Calvino; Luca Fontanelli
  2. Technology and Wage Share of Older Workers By Park, Donghyun; Shin, Kwanho
  3. On the direct and indirect effects of ICT on SMEs export performance. Evidence from Colombian manufacturing By Andrés Mauricio Gomez-Sanchez; Juan A. Máñez Castillejo; Juan Alberto Sanchis-Llopis
  4. Creation, destruction and reallocation of jobs in italian firms: an analysis based on administrative data By Luca Citino; Edoardo Di Porto; Andrea Linarello; Francesca Lotti; Enrico Sette
  5. Estimating Digital Infrastructure Investment Needs to Achieve Universal Broadband By Mr. David Amaglobeli; Mr. Mariano Moszoro; Edward Oughton

  1. By: Flavio Calvino; Luca Fontanelli
    Abstract: This report analyses the use of artificial intelligence (AI) in firms across 11 countries. Based on harmonised statistical code (AI diffuse) applied to official firm-level surveys, it finds that the use of AI is prevalent in ICT and Professional Services and more widespread across large – and to some extent across young – firms. AI users tend to be more productive, especially the largest ones. Complementary assets, including ICT skills, high-speed digital infrastructure, and the use of other digital technologies, which are significantly related to the use of AI, appear to play a critical role in the productivity advantages of AI users.
    Keywords: AI, artificial intelligence, productivity, technology adoption
    Date: 2023–04–11
  2. By: Park, Donghyun (Asian Development Bank); Shin, Kwanho (Korea University)
    Abstract: Technological progress may be less beneficial for older workers than younger workers. In this paper, we empirically examine the impact of technological change on the wage share of older workers. More specifically, we look at five different types of technological advancement using data from 30 European and Asian countries that are at the forefront of global population aging. Our findings indicate that recent technological developments centered on information and communication technology, software, and robots do not adversely affect older workers. One possible explanation is that older workers may be more open to learning and adopting new technologies than widely presumed.
    Keywords: aging; older workers; wage share; capital; information communication technologies; robots
    JEL: E24 E25 J01 J11 O11
    Date: 2023–03–24
  3. By: Andrés Mauricio Gomez-Sanchez (Universidad del Cauca, Colombia.); Juan A. Máñez Castillejo (Universidad de Valencia and ERICES, Valencia, España.); Juan Alberto Sanchis-Llopis (Universidad de Valencia and ERICES, Valencia, España.)
    Abstract: The objective of this document is to explore the effect of ICT on the performance of Colombian manufacturing SMEs in export markets. To our knowledge, this is the first piece of evidence that explores this issue for an emerging economy. In doing so, we include some cutting-edge novelties such as persistence in export intensity; cross effect from imports to exports, and the role of initial conditions problem. We replicate the Tobit II-Heckman model procedure by using a dynamic Generalized Linear Model (GLM) because the export intensity is a proportion and include the inverse Mills ratio to deal with the selection problem. We merge three databases namely The Annual Manufacturing Survey (EAM); the Innovation and Technological Development Survey (EDIT) and the Annual ICT Manufacturing Survey (EAM-TIC); published by the National Administrative Department of Statistics (DANE) in six waves since 2013 to 2018. In general, our main results suggest that the impacts of information technologies on export intensity are always positive, regardless of the ICT analysed. Other results show persistence in exports, cross effects and self-selection in export markets, among others.
    Keywords: ICT, Exports, Sunk costs, Cross effects, Empirical Studies of Trade, Emerging economies, Empirical Analysis
    JEL: L16 L96 F14 O33 C23 D22 D24
    Date: 2023–04
  4. By: Luca Citino (Bank of Italy); Edoardo Di Porto (INPS); Andrea Linarello (Bank of Italy); Francesca Lotti (Bank of Italy); Enrico Sette (Bank of Italy)
    Abstract: We study the creation, destruction and reallocation of jobs in Italy over a period of almost forty years, until 2021. The size of gross job flows was large and in line with other developed economies. Every year, around 13 per cent of jobs are created and 12 per cent are destroyed. Most of this creation and destruction occurs within narrowly defined sectors, highlighting the crucial role that firm heterogeneity – rather than sectoral shocks – plays in driving job flows. Although employment at incumbent firms is more influenced by the business cycle, the entry and exit of firms both contribute, respectively, to one third of job creation and destruction. During the pandemic, and contrary to what has been documented for the US and the UK, Italy experienced a decline in excess job reallocation, entirely due to within-sector flows, while between-sector reallocation increased only slightly. ICT services and the construction sector received larger inflows of workers. The former did so as a result of the opportunities brought about by the shift to a digital economy, while the latter was prompted by hefty fiscal incentives targeted at the industry.
    Keywords: reallocation, job creation, job destruction, COVID-19, recession, pandemic
    JEL: E24 E32 J63 O4
    Date: 2023–03
  5. By: Mr. David Amaglobeli; Mr. Mariano Moszoro; Edward Oughton
    Abstract: We develop a detailed model to evaluate the necessary investment requirements to achieve affordable universal broadband. The results indicate that approximately $418 billion needs to be mobilized to connect all unconnected citizens globally (targeting 40-50 GB/Month per user with 95 percent reliability). The bulk of additional investment is for emerging market economies (73 percent) and low-income developing countries (24 percent). We also find that if the data consumption level is lowered to 10-20 GB/Month per user, the total cost decreases by up to about half, whereas raising data consumption to 80-100 GB/Month per user leads to a cost increase of roughly 90 percent relative to the baseline. Moreover, a 40 percent cost decrease occurs when varying the peak hour quality of service level from the baseline 95 percent reliability, to only 50 percent reliability. To conclude, broadband policy assessments should be explicit about the quantity of data and the reliability of service provided to users. Failure to do so will lead to inaccurate estimates and, ultimately, to poor broadband policy decisions.
    Keywords: Broadband; Digital Infrastructure; Public Investment; Sustainable Development Goals; cost decrease; investment requirement; infrastructure investment; cost sensitivity; data consumption; policy assessment; estimation metrics; cost driver; data traffic; infrastructure cost modeling; Digitalization; Infrastructure; Emerging and frontier financial markets; Sub-Saharan Africa; Global; Caribbean; Central Asia and the Caucasus; Asia and Pacific
    Date: 2023–02–10

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