nep-ict New Economics Papers
on Information and Communication Technologies
Issue of 2023‒07‒24
eight papers chosen by
Marek Giebel
Universität Dortmund

  1. Harnessing the Potential of Online Marketplaces in the Philippines: Insights from the National Information and Communications Technology Household Survey By Bayudan-Dacuycuy, Connie; Dacuucuy, Lawrence
  2. Skills Shortage and Innovation Openness By Paolo Carioli; Dirk Czarnitzki
  3. The Impact of an Online Job Fair: Experimental Evidence from Bangladesh By Matsuda, Norihiko; Hayashi, Ryotaro
  4. Navigating Digital Inequality: Examining Factors Affecting Rural Customers’ Internet Banking Adoption in Post-COVID Bangladesh By Abu Sayed Toyon, Mohammad
  5. The Great Rush By Károly Fazekas
  6. The Usage of Internet in the Context of ESG Model at World Level By Leogrande, Angelo
  7. Impact of digital transformation on public governance By MILLARD Jeremy
  8. Globalise to Localise: Exporting at Scale and Deepening the Ecosystem are Vital to Higher Domestic Value Addition in Electronics By Deepak Mishra; Neha Gupta; Sanya Dua; Sanjna Agarwal

  1. By: Bayudan-Dacuycuy, Connie (Asian Development Bank Institute); Dacuucuy, Lawrence (Asian Development Bank Institute)
    Abstract: Using the Philippines’ first-ever nationally representative survey designed for characterizing digital commercial and noncommercial engagements, including information and communication technology (ICT) use, the digital economy, and technology-enabled incidents, we investigate the presence of gendered disparities in online marketplaces. Doing this is consistent with the spirit of a gender and development approach that aims for equal and equitable outcomes between men and women. We verify whether the observed participation of women in online marketplaces results in higher online sales. To establish the determinants of participation and incomes in online marketplaces, we use a Heckman estimator in cognizance of the nonrandom choices people make when they enter online marketspaces. The negative selection indicates that those likely to sell have unobserved attributes negatively correlated with online income. Based on our model’s income predictions, men outperform women in online sales. Men still hold the advantage, replicating a trend observed in traditional marketplaces. Results also highlight the importance of skills, digital awareness and habits, selling platforms, and ICT infrastructures. We also identify potential initiatives for online marketplaces.
    Keywords: online selling; participation; earnings; Philippines
    JEL: D19 D39
    Date: 2022–09
  2. By: Paolo Carioli; Dirk Czarnitzki
    Abstract: Skills shortage has become a key policy issue in highly developed and innovationoriented economies, with non-negligible consequences on firms’ innovation activities. We investigate the effect of skills shortage on firms’ innovation openness, which is considered to be one of the key drivers of innovation performance. We hypothesize that scarcity of personnel causes firms to cooperate more broadly with external partners. Using cross-sectional data from the German contribution to the Community Innovation Survey (CIS), and exploiting detailed information on the extent to which firms could fill their job vacancies, we find that, on average, a one standard deviation increase in skills shortage more than doubles a firm’s cooperation breadth. We contribute to the literature on human capital in relation to open innovation by characterizing the necessity of openness as a way to mitigate the scarcity of skills.
    Keywords: open innovation, R&D collaboration, skills shortage
    Date: 2023–05–29
  3. By: Matsuda, Norihiko (Florida International University); Hayashi, Ryotaro (Asian Development Bank)
    Abstract: Online job fairs are a new labor market intervention. This paper provides the first experimental evidence on their impact by evaluating an online fair for information and communication technology jobs in Bangladesh. The fair generated a non-negligible number of job offers; however, over 90% of them were rejected, so no effect on employment probability or type was found. Interestingly, jobseekers lowered their reservation wages, kept their jobs longer, and ended up in worse skill-matched jobs. The reason is that jobseekers initially had overoptimistic expectations, but learned about market conditions at the fair, lowered their expectations, and became discouraged from job search. As a result, those who had already been employed kept their jobs longer, even if the jobs did not match their skills, and those who had initially been unemployed ended up with lower employment probabilities and lower skill-match quality.
    Keywords: job fair; job matching; online search; youth employment; Bangladesh
    JEL: J24 J64 O12 O15
    Date: 2023–07–05
  4. By: Abu Sayed Toyon, Mohammad
    Abstract: As the world continues to navigate the new normal brought about by the COVID-19 pandemic, one issue that has come to the forefront is digital inequality. In Bangladesh, where a significant portion of the population resides in rural areas, the adoption of internet banking has been hindered by various factors. However, understanding these factors is crucial, especially now that digital transactions have become more important. This study aims to understand the factors influencing the adoption of internet banking services among rural customers in Bangladesh. To acquire data, a questionnaire was administered to 443 rural bank customers in the district of Barisal. The Exploratory Factor Analysis (EFA) revealed three primary factors: trust compatibility, service benefit, and access to consumer education. In addition, the research sought to determine if the identified factors, particularly access to consumer education, varied according to the occupation and income level of rural consumers. Using exhaustive Chi-squared Automatic Interaction Detection (CHAID) analysis, the findings revealed that access to consumer education differs significantly by occupation level, with business and service holders being more likely than farmers to have access to consumer education. This research contributes to the literature by providing insights into the adoption of internet banking by rural customers and informing policymakers about the special needs of this demographic.
    Date: 2023–04–29
  5. By: Károly Fazekas (Centre for Economic and Regional Studies – Institute of Economics)
    Abstract: This paper provides a summary of the latest advancements in generative artificial intelligence using large language models over the past six months. The impact of this breakthrough remains uncertain, but it is evident that GPT is a General-Purpose Technology (GPT) that will significantly alter various aspects of our economy and society in ways that are yet to be fully comprehended. While it is essential for the government to regulate GPT technology, it is inevitable that the technology will continue to expand and evolve at a rapid pace. There is no doubt that every corner of the new world if it exists at all, will be covered by millions of forms of artificial intelligence. The taming of AIs and successful social and personal cooperation with domesticated AIs could ensure our survival and prosperity in that world. Whether or not AIs are capable and willing to cooperate will populate the new world is neither an individual nor a national matter. But how a country and its people fare in the new world is more so.
    Keywords: innovation and invention: processes and incentives; technological change: choices and consequences; diffusion processes; technological innovation
    JEL: O31 O33 Q55
    Date: 2023–06
  6. By: Leogrande, Angelo
    Abstract: In this article, I estimate the value of “Individual Using Internet”-IUI in the context of Environmental, Social and Governance-ESG database of the World Bank. I use data from 193 countries for the period 2011-2020. I found that among others the value of IUI is positively associated to “Methane Emissions” and “People Using Safely Managed Sanitation Services” and negatively associated among others to “Fossil Fuel Energy Consumption” and “Renewable Energy Consumption”. I apply the k-Means algorithm for the clusterization optimized with the Elbow Method and we find the presence of three clusters. Finally, I confront eight machine-learning algorithms to predict the future value of IUI. I found that the best predictive algorithm is Linear Regression and that the value of IUI is expected to decrease on average of 0.30% for the analysed countries.
    Date: 2023–06–24
  7. By: MILLARD Jeremy
    Abstract: Public governance concerns how the roles and relations of all actors are organised, structured, managed and administered, including power and competence relationships and the levers that each actor has, particularly when using digital technology. Its overall purpose is to deliver public value benefits that promote the prosperity, wellbeing and flourishing of all people and all parts of society, as enabled by nature’s life-support systems. The focus is on the EU but also with a broader international perspective. The setting is (liberal) democratic systems, with their country, regional and local variations and the EU as the overarching level of governance. The EU already has many policies to promote the public values of good governance as the means of tackling its challenges to achieve these public value benefits. However, at the end of 2022, there is a renewed need for two reappraisals. First, a thorough mapping and understanding of the public governance arrangements, defined as paradigms in this report that have and are being deployed across all the EU’s multi-governance levels, the role played by digital technology and the impacts these have had. Second, an analysis of the new strategic challenges the EU faces, especially since early 2020 with the start of the COVID-19 pandemic, the war in Ukraine and the dramatically escalating social, economic and environmental crises, taking account of the role that digital technology and data can play.
    Keywords: public governance, digital government, digital transformation, public value, public services
    Date: 2023–06
  8. By: Deepak Mishra (Indian Council for Research on International Economic Relations (ICRIER)); Neha Gupta (Indian Council for Research on International Economic Relations (ICRIER)); Sanya Dua (Indian Council for Research on International Economic Relations (ICRIER)); Sanjna Agarwal
    Abstract: The study proposes that India should adopt the mantra of first globalise, then localise, a strategy also pursued by China and Vietnam. Implementing it will require two fundamental changes in the existing policy regime. First, the electronics sector should be able to source inputs from the lowest cost suppliers anywhere in the world until it achieves a global scale, which implies temporarily suspending localisation requirements, removing duties on intermediate items, and accelerating integration through bilateral and regional FTAs.Second, the priority of the industrial policy should be about creating a competitive domestic ecosystem of ancillary suppliers – by improving business climate, removing unnecessary regulations, helping with technology transfer and supporting services, training of workers, better sharing of market information, investment in R&D, and targeted fiscal incentives – through cooperative collaboration with the state governments and the private sector.
    Keywords: Electronics Trade, FTA, Global-Value-Chains, icrier, ICEA, digital India
    Date: 2022–08

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