nep-ict New Economics Papers
on Information and Communication Technologies
Issue of 2023‒05‒15
four papers chosen by
Marek Giebel
Universität Dortmund

  1. Determinants and Social Dividends of Digital Adoption By David Amaglobeli; Mariano Moszoro; Utkarsh Kumar
  2. Digitalization, Innovation and Productivity in South African Micro and Small Enterprises By Cyrielle Gaglio; Erika Kraemer-Mbula; Edward Lorenz
  3. Financial intermediation and new technology: theoretical and regulatory implications of digital financial markets By Maurizio Trapanese; Michele Lanotte
  4. E-Commerce in Asia: A Study of Its Economic Impact on the Region By Dayal Saraswat, Kinshuk

  1. By: David Amaglobeli; Mariano Moszoro; Utkarsh Kumar
    Abstract: We identify key drivers of digital adoption, estimate fiscal costs to provide internet subsidies to households, and calculate social dividends from digital adoption. Using cross-country panel regressions and machine learning, we find that digital infrastructure coverage, internet price, and usability are the most statistically robust predictors of internet use in the short run. Based on estimates from a model of demand for internet, we find that demand is most price responsive in low-income developing countries and almost unresponsive in advanced economies. We estimate that moving low-income developing and emerging market economies to the levels of digital adoption in emerging and advanced economies, respectively, will require annual targeted subsidies of 1.8 and 0.05 percent of GDP, respectively. To aid with subsidy targeting, we use microdata from over 150 countries and document a digital divide by gender, socio-economic status, and demographics. Finally, we find substantial aggregate and distributional gains from digital adoption for education quality, time spent doing unpaid work, and labor force participation by gender.
    Keywords: Social Dividends; Digitalization; GovTech; Internet use; internet price; Internet adoption; Internet coverage; internet use; Labor force participation; Income; Women; Purchasing power parity; Sub-Saharan Africa
    Date: 2023–03–17
  2. By: Cyrielle Gaglio (University of Helsinki; Sciences Po, OFCE, France); Erika Kraemer-Mbula (University of Johannesburg); Edward Lorenz (Université Côte d'Azur, France; GREDEG CNRS)
    Abstract: This paper aims to study the links between the use of digital communication technologies, innovation performance and productivity for a sample of micro and small enterprises (MSEs) in a middle-income country, South Africa. Based on the results of an original survey carried out in 2019, we investigate these links for a sample of 711 manufacturing MSEs located in Johannesburg. We estimate the relations sequentially, first estimating the relation between digitalization and innovation, and secondly the relation between innovation and productivity. Our results show that selected digital communication technologies including the use of social media and the use of a business mobile phone for browsing the internet have a positive effect on innovation, and that innovation conditional on the use of these technologies has a positive impact on labor productivity.
    Keywords: Digital communication technologies, Product innovation, Productivity, MSEs, Johannesburg
    JEL: O14 O31 O4
    Date: 2022–06
  3. By: Maurizio Trapanese (Banca d'Italia); Michele Lanotte (Banca d'Italia)
    Abstract: Technological progress in finance has been accelerating over the last decade. In the future, it is likely that financial intermediaries may undergo significant challenges as regards their traditional business model and functions, since an increasing share of payments may be settled without banks’ deposits and capital markets may increasingly provide direct credit to the economy. This paper aims to outline the theoretical and regulatory implications stemming from digital financial markets, with a particular focus on the growing importance of BigTech and FinTech firms. We study the importance of information and communication in financial intermediation, and outline the impact of technological progress on the core functions traditionally performed by banks and other financial institutions, and on payment systems. In this context, we discuss the role of public policies, and the main issues for regulation, supervision, competition, and consumer protection.
    Keywords: firm behaviour, international financial markets, financial institutions, financial policy and regulation, risk management JEL Classification: D21, G15, G20, G28, G32
    Date: 2023–04
  4. By: Dayal Saraswat, Kinshuk
    Abstract: In Asia, e-commerce has the potential to generate considerable economic benefits due to the significant opportunities it offers. Recent years have seen a significant development in the global economy that has been referred to as e-commerce (electronic commerce). In order for the Asian countries to be able to take advantage of the opportunities presented by this global trend of growth, they will still have to make progress in areas such as connectivity, services, rules and regulations, as well as labour skills. As a result of government policy, the market can be assisted to maximize the benefits of the information revolution, and to mitigate the risk of potential market failure, as well as to facilitate market mechanisms that will facilitate the transition. E-commerce has the potential to play a significant role in the development of Asia and the Pacific as a whole. Over the last few years, the Asia Pacific region has grown at the fastest pace compared to any other region of the global business-to-consumer e-commerce market, making up the majority of the global e-commerce market in the business-to-consumer segment. It is expected that Asian and Pacific countries will have a 25% share of e-commerce in their Gross Domestic Product by the end of 2025, according to the World Bank. Among the many advantages of e-commerce for small and medium-sized businesses, one of the most notable is the ability to reach global markets and to compete at a global level.
    Keywords: global economy, intergovernmental cooperation, e-transactions, cybersecurity, big data analytics, the internet of things (IoT), artificial intelligence (AI), augmented reality (AR), virtual reality (VR), and blockchain technology
    JEL: F43 L8 L81 O1
    Date: 2021–04–14

This nep-ict issue is ©2023 by Marek Giebel. It is provided as is without any express or implied warranty. It may be freely redistributed in whole or in part for any purpose. If distributed in part, please include this notice.
General information on the NEP project can be found at For comments please write to the director of NEP, Marco Novarese at <>. Put “NEP” in the subject, otherwise your mail may be rejected.
NEP’s infrastructure is sponsored by the School of Economics and Finance of Massey University in New Zealand.