nep-ict New Economics Papers
on Information and Communication Technologies
Issue of 2024‒01‒08
nine papers chosen by
Marek Giebel, Universität Dortmund

  1. Kuwait’s enduring digital divide: socio-demographic characteristics relative to ICT access, skills, and outcomes By Al-Sumait, Fahed; Navarro, Cristina
  2. (Mis-)information technology: Internet use and perception of democracy in Africa By Joël Cariolle; Yasmine Elkhateeb; Mathilde Maurel
  3. Do internet and mobile usage affect the Democracy-economic growth nexus in Africa? By Toyo A. M. Dossou; Kihumuro Jotham; Kouessi P. Dossou; Emmanuelle N. Kambaye; Simplice A. Asongu; Alastaire S. Alinsato
  4. Mobile Internet and income improvement: Evidence from Viet Nam By Trang Thi Pham
  5. Better together: How digital connectivity and regulation reduce trade costs By Bellucci, Chiara; Rubínová, Stela; Piermartini, Roberta
  6. Financial Systemic Risk behind Artificial Intelligence:Evidence from China By Jingyi Tian; Jun Nagayasu
  7. Affordance Theory for Information Systems project implementation: a process and organizational outlook By Ferran Pérez Pedrola; Claudio Vitari
  9. An Analysis on the Regional Integration of Northeast Asia by Developing NARCI (Northeast Asia Regional Cooperation Index) By Lee, Seungrae; Park, Jehoon; Park, Sung-Hoon

  1. By: Al-Sumait, Fahed; Navarro, Cristina
    Abstract: Kuwait has ambitious plans to shift away from its current dependence on hydrocarbon resources toward a more knowledge-based economy wherein information and communication technologies (ICTs) will play a critical role. As one of the world’s wealthiest and most digitally connected countries, it appears to have several advantages in leveraging technology to help achieve its national goals. However, significant questions remain as to how well its digital infrastructure translates into tangible outcomes for its highly diverse society. With an expatriate-majority population comprising of a high number of migrant workers, many of whom possess limited levels of education and ICT access, ensuring more equitable distribution of its digital resources is paramount to its plans for digital transformation. Using data from a national survey, this paper highlights the current state of digital inequalities in the country according to the domains of ICT access, skills, and achieved outcomes. Findings indicate while digital parity appears to exist between genders, significant gaps remain according to such factors as age, education, and nationality.
    JEL: J1 R14 J01
    Date: 2023–12–01
  2. By: Joël Cariolle (FERDI - Fondation pour les Etudes et Recherches sur le Développement International); Yasmine Elkhateeb (Cairo University, CES - Centre d'économie de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique); Mathilde Maurel (FERDI - Fondation pour les Etudes et Recherches sur le Développement International, CES - Centre d'économie de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique)
    Abstract: The Internet has significantly expanded worldwide, changing our relationship with the world, and the way we communicate, educate, and inform ourselves. Africa, despite having a very low number of fixed-broadband subscriptions for 100 inhabitants, has not escaped the Internet phenomenon, as the number of individuals with Internet access has risen from 2 in 2002 to 39.7 (per 100 inhabitants) in 2022. Similarly, the number of individuals with mobilecellular telephone subscriptions has jumped from 12.4 in 2002 to 86.3 (per 100 inhabitants) in 2022 (ITU, 2022).
    Keywords: Internet, Africa, Digital technologies, Digital development
    Date: 2023–11–16
  3. By: Toyo A. M. Dossou (Gbégamey-Cotonou, Benin); Kihumuro Jotham (Beijing Normal University, China); Kouessi P. Dossou (Gbégamey-Cotonou, Benin); Emmanuelle N. Kambaye (Chengdu, China); Simplice A. Asongu (Johannesburg, South Africa); Alastaire S. Alinsato (Gbégamey-Cotonou, Benin)
    Abstract: Recently, many studies have examined the ICT-economic growth relationship and the democracy-economic growth linkage with conflicting results. However, the study on the moderating effect of internet and mobile usage on the democracy-economic growth relationship is very scanty. This study, therefore, contributes to the economic development literature by examining the impact of internet and mobile usage on the democracy-economic growth relationship in 26African economies over the period 2000-2020. The panel corrected standard errors (PCSE) estimation technique has been applied. The results show that improving democratic system in Africa can foster economic growth. Moreover, the result reveals that increasing internet and mobile usage can boom economic growth in Africa. Furthermore, the results reveal that the interaction between internet and mobile usage and democracy can boost economic growth in Africa. Policy implications regarding the moderating effect of internet and mobile usage on the democracy-economic growth nexus are discussed.
    Keywords: Democracy, internet and mobile usage, Economic growth, Africa
    Date: 2023–01
  4. By: Trang Thi Pham
    Abstract: New developments of existing technologies over time have led to emergent patterns of technology adoption and, accordingly, changing impacts on economy and society. Focusing on the arrival of mobile internet in the early 2010s in developing countries, this paper identifies significant positive effects on provinces' average household income in Viet Nam. The effect sizes are larger for lower-income quintiles and for rural areas, suggesting the more inclusive changing impact of the innovation over the last decade.
    Keywords: Household income, Internet, Mobile technologies, Technological change, Developing countries
    Date: 2023
  5. By: Bellucci, Chiara; Rubínová, Stela; Piermartini, Roberta
    Abstract: In this paper we study the impact of digitalization on trade costs in 58 economies over the period 2014 - 2018. Improvements in digital connectivity can reduce trade costs through multiple channels, including better access to information, lower transaction costs, the reduced need for business travel, more efficient customs and logistics, and easier communication. However, these positive effects depend on effective regulation that ensures trust in digital markets and open access to digital infrastructure, services and data. We assess the impact of digital connectivity, proxied by the number of active mobile broadband subscriptions per capita, on a broad measure of trade costs that captures all impediments that make international trade more difficult or costly than domestic trade. We estimate that a 10 percentage point higher digital connectivity is associated with around 2 per cent lower trade costs both in goods and services. Digital trade regulation that ensures cross-border connectivity and information flows amplifies the trade-cost-reducing effect of improved digital connectivity. This result is particularly strong in digitally deliverable services where the marginal effect of connectivity at the best regulation is 80 per cent larger than at the median regulation.
    Keywords: digital trade, trade costs, gravity model, digital regulation
    JEL: F10 F14 F15
    Date: 2023
  6. By: Jingyi Tian; Jun Nagayasu
    Abstract: As an important domain of information technology development, artificial intelligence (AI) has garnered significant popularity in the financial sector. While AI offers numerous advantages, investigating potential risks associated with the widespread use of AI has become a critical point for researchers. We examine the impact of AI technologies on systemic risk within China’s financial industry. Our findings suggest that AI helps mitigate the increase of systemic risk. However, the impact of AI differs across different financial sectors and is more pronounced during crisis periods. Our study also suggests that AI can decrease systemic risk by enhancing the human capital of financial firms. Moreover, the theoretical framework presented in this paper provides insights into the notion that imprudent allocation of AI-related investment could potentially contribute to an increase in systemic risk.
    Date: 2023–11
  7. By: Ferran Pérez Pedrola (EESC-GEM Grenoble Ecole de Management); Claudio Vitari (CERGAM - Centre d'Études et de Recherche en Gestion d'Aix-Marseille - AMU - Aix Marseille Université - UTLN - Université de Toulon)
    Abstract: This paper explores the Information Systems project implementations in organizations. It focuses on the actualization of the affordances that result from the intertwining of the Information Technology (IT) artefact and the organization and we answer to the following research question "How do organizations actualize affordances?" With a qualitative multiple case study on the different local entities of an international leading retailer, this research identifies that previous research omitted the top management sponsorship as one of the main influences for the actualization process. Moreover, constrains perception is observed in the collected data and its role is assessed. This paper contributes the development of the affordance theory by providing an updated process-based integrative theoretical framework for affordances at the organizational level, aimed to support further research on Information Systems.
    Keywords: Multiple Case Study, Affordance Theory, Affordance Actualization, Affordance Effect, Multinational Corporation
    Date: 2023–08–10
  8. By: Pérez Pedrola (EESC-GEM Grenoble Ecole de Management); Claudio Vitari (CERGAM - Centre d'Études et de Recherche en Gestion d'Aix-Marseille - AMU - Aix Marseille Université - UTLN - Université de Toulon); Elisabetta Raguseo (Polito - Politecnico di Torino = Polytechnic of Turin); Federico Pigni (EESC-GEM Grenoble Ecole de Management)
    Abstract: A growing number of Information Systems (IS) researchers are applying the theory of affordances to study the uses and consequences of the Information Technology (IT) artifacts in organizations, necessitating an integrative view of the subject. However, the definition of IT affordance varies in the originating literature, lacking coherence. We offer a framework for organizing the existing literature. This framework models affordances' manifestations as effects of people's actions at the organizational level. We reviewed 495 articles in IS, Organizational Studies, and Management literature, and closely examined a filtered subset of 220 articles. Our work makes three main contributions. First, we address the concept of IT affordance at the organizational level. Second, we looked and classified existing affordance literature into four main areas: affordance existence, affordance perception, affordance actualization, and affordance effect. We provided an exploration of each element in those areas and its implications at an organizational level and for a process-based orientation. Finally, we offer an analysis of the methodologies used on the literature to signal a potential venue for future research in the use of empirical quantitative methods to address an existing gap.
    Keywords: Organizational level, IT Affordances, Affordance's Theory, Literature Review
    Date: 2023–09–06
    Abstract: This paper aims to develop an index to analyze regional cooperation in Northeast Asia, which is Northeast Asia Regional Cooperation Index(NARCI). NARCI evaluates intra-regional cooperation and integration in four areas, which are functional cooperation, politico-security cooperation, socio-cultural cooperation, and institutionalization, in order to identify the conflict and cooperation situation in the Northeast Asian region. The analysis of economic integration found that Northeast Asian regional cooperation is characterized by a high level of integration in goods trade and regional value chain cooperation, but a relatively low level of integration in intra-regional direct investment and energy supply chain cooperation. The analysis of the political and security cooperation shows that the intensification of U.S.-China competition and the factional confrontation between Korea, U.S., Japan, and North Korea, China, Russia have had a significant impact on regional cooperation in political and diplomatic security. The result shows that the level of integration is low, with all evaluation indicators being negative. The analysis of the socio-cultural integration shows a relatively low level of integration in civil society cooperation and intergovernmental exchanges, a relatively high level of integration in cultural and educational exchanges and study abroad, and a neutral level of integration in information technology cooperation, labor mobility, and the share of tourists in the region. Finally, the analysis of institutional integration shows a relatively high level of integration in the bilateral channels between governments and the institutionalization of regional cooperation in the socio-cultural field, and half of the countries had institutional integration in financial integration and regional cooperation in the economic field. The level of integration in the political and security field was low due to the existence of only multilateral meetings. The analysis of NARCI shows that the impact of geopolitical conflicts on the economy and socio-culture has been expanding in recent years. However, the low level of political and diplomatic cooperation in the region and related institutional deficiencies are considered to be insufficient to buffer these risks, and efforts are needed to address them.
    Keywords: Northeast Asia; Regional Cooperation; Regional Integration; Index Development
    JEL: F02 F50
    Date: 2023–10–27

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