nep-ict New Economics Papers
on Information and Communication Technologies
Issue of 2023‒05‒08
three papers chosen by
Marek Giebel
Universität Dortmund

  1. Moderating effect of ICT on the relationship between governance quality and income inequality in sub-Saharan Africa By Toyo A. M. Dossou; Emmanuelle N. Kambaye; Mesfin W. Berhe; Simplice A. Asongu
  2. Are digital technologies reshaping trade patterns? Evidence from European industries By Marco Sforza
  3. Telecommunications regulation, mobile money innovations and financial inclusion By Simplice A. Asongu

  1. By: Toyo A. M. Dossou (Sichuan, China); Emmanuelle N. Kambaye (Sichuan, China); Mesfin W. Berhe (Sichuan, China); Simplice A. Asongu (Yaoundé, Cameroon)
    Abstract: The ICT-income inequality relationship and the governance quality-income inequality nexus have been investigated in recent years. However, the moderating effect of ICT on the governance quality-income inequality linkage has been largely ignored. To fill this gap in the literature, this study examines the moderating effect of ICT on the relationship between governance quality and income inequality for a panel of 42 sub-Saharan African economies over the period 1996-2020. To achieve this goal, the generalized method of moments (GMM) estimation technique has been adopted. The results reveal that while ICT contributes to the improvement of income distribution, governance quality contributes to the exacerbation of income inequality. Interestingly, the results unveil that the promotion of E-governance could contribute to improve social welfare and reduce income inequality. Policy implications are given based on the findings of this study. For instance, institutional reforms must be conducted by considering ICT as an important factor to improve income distribution.
    Keywords: ICT, governance quality, income inequality, GMM, sub-Saharan Africa
    Date: 2023–01
  2. By: Marco Sforza (Department of Economics, Roma Tre University)
    Abstract: The paper explores the relationship between the industry-level diffusion of digital technologies and the regionalisation of trade in value added. Theoretical literature underlines two potential effects of these technologies. They may facilitate coordination, favouring higher fragmentation, but also redefine comparative advantages, pushing toward relocation. The aim of the paper is to provide empirical evidence on the relationship between digital technologies and trade regionalisation, for a panel of selected European countries and sectors over the period 2005-2018. I build a dataset combining data from TiVA-OECD, EU-KLEMS and Eurostat SBS. I define two regionalisation measures, comparing intra-EU against extra-EU trade flows, to capture the relative importance of the two regions for input sourcing and output destination. The econometric analyses show a differentiated effect on the two measures: digital capital reduces regionalisation of the input sourcing, while positively correlating with the regionalisation of the intermediate output. Finally, a differentiated effect is also found in magnitude between technologies, namely, physical ICT and software.
    Keywords: Digital technologies; Global Value Chains; Trade regionalisation
    JEL: O33 F10 F15
    Date: 2023–04
  3. By: Simplice A. Asongu (Yaounde, Cameroon)
    Abstract: This study assesses how corporate telecommunication (telecom) policies follow telecom sector regulation in mobile money innovation for financial inclusion in developing countries. Telecom policies are understood in terms of mobile subscriptions, mobile connectivity coverage and mobile connectivity performance while mobile money innovations represent mobile money accounts, the mobile used to send money and the mobile used to receive money. The empirical evidence is based on Tobit regressions. Telecom sector regulation positively influences mobile money innovations. From net influences, mobile subscriptions and connectivity policies moderate telecom sector regulation to positively influence mobile money innovations; exclusively within the remit of mobile money accounts because the corresponding net influences on the mobile used to send money and the mobile used to receive money are negative. The interactive influences are consistently negative and hence, thresholds for complementary policies are provided in order to maintain the positive influence of telecom sector regulation on mobile money innovations. This study has complemented the extant literature by assessing how corporate telecommunication policies follow telecommunication sector regulation in mobile money innovations for financial inclusion.
    Keywords: Mobile money; technology diffusion; financial inclusion; inclusive innovation
    JEL: D10 D14 D31 D60 O30
    Date: 2023–01

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