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on Information and Communication Technologies |
| By: | Beacham, Austin; Hafner-Burton, Emilie M; Schneider, Christina J |
| Abstract: | The rapid spread of information and communication technologies across and within borders has been an important feature of the contemporary era, with the Internet at its core. Until recently, the widespread belief was that the Internet would be beneficial for the spread and resilience of democracy. This common wisdom has become increasingly contested, as political actors in democracies and autocracies alike have learned to use the Internet to maneuver information to enhance government popularity and suppress or delegitimate the opposition. We argue that open information access can be weaponized to reduce democratic resilience when duly elected leaders with anti-pluralist aspirations harness them to increase political polarization. We test the empirical implications of our theory with a mixed-methods approach that combines a large-N quantitative comparative analysis of democratic backsliding in 97 democracies after the Cold War with a typical case study of democratic resilience in India to trace the underlying causal mechanisms of the theory. Together, the findings indicate that with growing access to the Internet has come the increased likelihood of democratic backsliding, especially when anti-pluralist parties use it to increase polarization and executive power. |
| Keywords: | Social and Behavioral Sciences, Internet, democracy, information, social media, backsliding, populism |
| Date: | 2024–11–01 |
| URL: | https://d.repec.org/n?u=RePEc:cdl:globco:qt6f24q81x |
| By: | Draca, Mirko (London School of Economics); Nathan, Max (University College London); Nguyen-Tien, Viet (London School of Economics); Oliveira-Cunha, Juliana (London School of Economics); Rosso, Anna (University of Milan); Valero, Anna (London School of Economics) |
| Abstract: | Which types of human capital influence the adoption of advanced technologies? We study the skill-biased adoption of information and communication technologies (ICT) across two waves in the UK. Specifically, we compare the 'new wave' of cloud and machine learning / AI technologies during the 2010s - pre-LLM - with the previous wave of personal computer adoption in the 1990s and early 2000s. At the area-level we see the emergence of a distinct STEM-biased adoption effect for the second wave of cloud and machine learning / AI technologies (ML/AI), alongside a general skill-biased effect. A one-standard deviation increase in the baseline share of STEM workers in areas is associated with around 0.3 of a standard deviation higher adoption of cloud and ML/AI. We find similar effects at the firm level where we are able to test for the influence of a wide range of skills. In turn, this STEM-biased adoption pattern has encouraged the concentration of these technologies, leading to more acute differences between high-tech and low-tech areas and firms. In contrast with classical technology diffusion, recent cloud and ML/AI adoption in the UK seems more likely to widen inequalities than reduce them. |
| Keywords: | human capital, ICT, technology diffusion, STEM |
| JEL: | D22 J24 O33 R11 |
| Date: | 2024–09 |
| URL: | https://d.repec.org/n?u=RePEc:iza:izadps:dp17329 |
| By: | Timothy DeStefano; Nick Johnstone; Richard Kneller; Jonathan Timmis |
| Abstract: | The arrival of cloud computing provides firms a new way to access digital technologies as digital services. Yet, capital incentive policies present in every OECD country are still targeted towards investments in information technology (IT) capital. If cloud services are partial substitutes for IT investments, the presence of capital incentive policies may unintentionally discourage the adoption of cloud and technologies that rely on the cloud, such as artificial intelligence (AI) and big data analytics. This paper exploits a tax incentive in the UK for capital investment as a quasi-natural experiment to examine the impact on firm adoption of cloud computing, big data analytics and AI. The empirical results find that the policy increased investment in IT capital as would be expected; but it slowed firm adoption of cloud, big data and AI. Matched employer-employee data shows that the policy also led firms to reduce their demand for workers that perform data analytics, but not other types of workers. |
| Keywords: | capital incentives, firms, cloud computing, artificial intelligence |
| JEL: | J21 J24 L20 O33 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:ces:ceswps:_11369 |
| By: | De Vera, Micole (Banco de España); Garcia-Brazales, Javier (CEMFI) |
| Abstract: | Using a mix of household- and employer-based survey data from 46 countries, we provide novel evidence that workers in larger establishments perform more non-routine analytical tasks, even within narrowly defined occupations. Moreover, workers in larger establishments rely more on the use of information and communication technologies (ICT) to perform these tasks. We also document a 15% raw wage premium that workers in larger establishments enjoy relative to their counterparts in smaller establishments. A mediation analysis shows that our novel empirical facts on the task content of jobs are able to explain between 5–20% of the establishment size wage premium, a similar fraction to what can be explained by selection of workers on education, gender, and age. |
| Keywords: | tasks, occupations, establishment size, cross-country evidence, wage differential |
| JEL: | J24 J31 L25 |
| Date: | 2024–09 |
| URL: | https://d.repec.org/n?u=RePEc:iza:izadps:dp17319 |
| By: | Arundhati Sinha Roy; Anwesha Aditya; Siddhartha Chattopadhyay; Sugata Marjit |
| Abstract: | Traditional gravity models posit an inverse relationship between geographical distance and bilateral trade due to increased transportation costs. However, recent literature suggests that bilateral service trade may increase between two countries located at an appropriate geographical distance. Using the Poisson Pseudo-Maximum Likelihood (PPML) method, this research analyses two key effects of time difference for 162 countries in 2018 - the continuity effect (enabling 24/7 operations) and the synchronization effect (influenced by cultural and/or institutional differences) for aggregate services, ICT-enabled services, and travel-transportation services. Our findings indicate a positive continuity effect across all service categories, while the synchronization effect varies across categories. We also find that 8-10 hour time difference between two countries appears most advantageous for ICT-enabled service trade between them. This paper underscores the importance of ICT and physical infrastructure, coupled with transparent governance, to boost service trade. |
| Keywords: | service trade, time zone difference, continuity effect, synchronization effect, information and communication technology (ICT) |
| JEL: | F10 F14 L86 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:ces:ceswps:_11290 |
| By: | Albanese, Marina; Varlese, Monica |
| Abstract: | Digitalization, driven by the transformative impact of digital technologies, plays a crucial role in the energy transition process. Advancements in these technologies are bringing about significant changes in how energy is generated, transmitted, and utilized. In particular, digital technologies enable modern smart grids to optimize energy management by integrating renewable energy sources more effectively. In this context, the paper explores the effects of smart grids on the energy transition, emphasizing their benefits and the key incentives that promote investment. Additionally, it reviews current trends in smart grid development across European countries, with a specific focus on Italy. The objective is to provide a comprehensive overview of the investments required to implement both existing and new smart grid projects. |
| Keywords: | Energy sector, Transition energy, Digitalization, ICT, Smart grids. |
| JEL: | O13 O33 P28 P48 Q01 Q43 Q55 Q56 |
| Date: | 2024–09–11 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:121992 |
| By: | Mima Sefrina |
| Abstract: | The rapid development of the digital economy in ASEAN offers broad economic and societal opportunities but also accentuates disparities between urban and rural areas, large enterprises and SMEs, and various segments of the population. While inclusiveness has been a priority on ASEAN's agenda, there is room for improvement. The concept of an inclusive digital economy in ASEAN should extend beyond broadband connectivity and necessitates a precise definition through quantifiable measures. Identifying the key elements of exclusion and inclusion as a strategic approach to effectively address inclusiveness issues is essential to understand the barriers hindering the achievement of an inclusive digital economy. There is also a need to identify specific populations, understand their characteristics, and address their needs for inclusion in the digital economy. A robust, region-specific data system that is accessible to the public is critical. In ASEAN, an inclusive digital economy underscores the need to address digital skills, gender inequality, digital finance, and the empowerment of MSMEs as key economic drivers in ASEAN. |
| Keywords: | Inclusive, ASEAN, Inclusive Digital Economy, Digital Economy, MSMEs, Broadband Connectivity, Digital Finance, Gender Disparities, Digital Skills, Internet Speed, Urban and Rural Divide, Digital Divide, Broadband Affordability |
| JEL: | O20 O38 |
| Date: | 2024–03–07 |
| URL: | https://d.repec.org/n?u=RePEc:era:wpaper:dp-2023-33 |