|
on Information and Communication Technologies |
| By: | Sungjin Kim (Korea Institute for Industrial Economics and Trade) |
| Abstract: | In 2026, South Korea's 13 flagship industries are expected to follow divergent paths against a backdrop of moderate global growth, a slow recovery in world trade, and accelerating technological change. The information technology (IT) and emerging industries sectors-comprising the semiconductors, information and communications technology (ICT) devices, secondary batteries, and biohealth industries-are projected to lead growth on the back of strong demand for artificial intelligence (AI) and electric vehicles (EV), while growth in the machinery sectors (automobiles, ships, general machinery) should pick back up slightly. Growth in the materials sectors (steel, petrochemicals, refined oil, textiles) looks to remain subdued amid slack external demand and China's newfound self-sufficiency in materials production. Korea's export portfolio is likely to become more concentrated than ever in high value-added IT and biohealth products, while shipments of materials and general machinery stay weak or even contract. |
| Keywords: | economic outlook; economic forecast; industrial outlook; flagship industries; artificial intelligence; AI; tariffs; global trade; carbon neutrality; China; global value chains; GVCs |
| JEL: | F01 E66 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:ris:kieter:022202 |
| By: | Bouzahzah, Mohamed |
| Abstract: | Digitalization boosts economic performance, but its returns vary widely across countries. This paper shows that culture - measured via a World Values Survey index of effort, success, and technological openness - acts as a threshold moderator: internet usage raises log GDP per capita by 0.021 below the cultural threshold (-0.37) vs. 0.033 above it, using 55-country averages (2017-2024). Threshold regressions and quantiles reveal stronger effects in high-culture regimes and upper income quantiles, extending Haller (2024) globally with non-linearities. Results are robust across digitalization proxies (internet, fixed broadband, mobile cellular), implying infrastructure alone fails without cultural readiness for innovation. |
| Keywords: | Digitalization, Culture, Threshold Effects, Economic Growth |
| JEL: | O33 O47 Z10 |
| Date: | 2026–01 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:127839 |
| By: | Quimba, Francis Mark A.; Caboverde, Christopher Ed C.; Salazar, Alliah Mae C. |
| Abstract: | Artificial intelligence (AI) is expected to make substantial contributions to Philippine growth and productivity in the coming years. Local government units (LGUs) may leverage this new technology to provide enhanced public service delivery to their respective constituencies. The question now is how ready these units are to adopt AI. This study assesses the preparedness of Philippine LGUs for AI adoption, identifies key barriers to implementation, and derives policy-relevant insights to support inclusive and sustainable AI adoption. Using an AI Readiness Index complemented by qualitative interviews with LGU officials, the study finds that, among other things, LGUs exhibit generally low to moderate readiness for AI adoption, with critical bottlenecks including shortages of ICT and AI-related skills, limited last-mile internet connectivity, and minimal budget allocations for digital initiatives. LGUs also face the challenge of balancing the provision of essential public services that yield immediate political dividends with the longer-term process of implementing and adopting AI for local governance. Policy implications highlight the need for coordinated, multi-level interventions that align infrastructure investment, skills development, governance reforms, and resource allocation. Comments to this paper are welcome within 60 days from the date of posting. Email publications@pids.gov.ph. |
| Keywords: | Artificial Intelligence, AI adoption, AI readiness, local government units, Philippine LGUs, local governance modernization |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:phd:dpaper:dp_2025-48 |
| By: | Maciel, Mateus; Zuchowski, David |
| Abstract: | Investment in critical infrastructure is essential for long-term development. However, low tax revenues in developing countries often constrain such investment. In this paper, we examine whether the expansion of high-speed mobile internet infrastructure can generate additional tax revenue. To identify the causal effect, we exploit the staggered rollout of 3G and 4G infrastructure across municipalities in Brazil. Using an event study approach, we find that the expansion of this technology leads to a lasting increase in income tax revenue, driven almost entirely by higher corporate income tax collection. We show that the additional tax revenue results from increased economic activity and formalization following the expansion of high-speed mobile internet. Our findings indicate that investment in digital infrastructure can stimulate economic growth and strengthen fiscal capacity in developing countries. This means that policymakers in developing countries with low tax revenues should expand their focus beyond tax-collection reforms and integrate growth-enhancing investments into their agenda. |
| Keywords: | tax revenues, mobile internet, poverty trap, developing countries, Brazil |
| JEL: | H20 H71 O18 O38 R11 |
| Date: | 2025–12–23 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:127865 |
| By: | Demir, Banu; Grover, Arti |
| Abstract: | This paper examines the impact of improvements in digital infrastructure on labor market performance, focusing on employment and productivity, measured by average wages. The empirical setting exploits the staggered expansion of high-speed fiber broadband across provinces in Türkiye, using linked employer-employee administrative data and complementary Labor Force Surveys. Across specifications, better digital connectivity raises formal employment and wages, with effects concentrated in occupations amenable to remote work. Most of these gains arise from workers—disproportionately women—entering teleworkable occupations enabled by high-quality internet access. Detailed occupational data reveal that these effects are driven by within-province switches from non-teleworkable to teleworkable jobs, consistent with the relaxation of mobility constraints and the expansion of work-from-home opportunities as a key channel. Wage gains are concentrated among high-skilled workers, although employment effects also extend to lower-skilled women in teleworkable roles. In contrast to the effects of digital connectivity, comparable investments in road infrastructure that enhance physical connectivity produce more mixed results: reduced travel times can improve access to jobs, but competition from nearby regions may offset these benefits. |
| Date: | 2026–02–17 |
| URL: | https://d.repec.org/n?u=RePEc:wbk:wbrwps:11314 |
| By: | Serafica, Ramonette B.; Oren, Queen Cel A.; Esguerra, Emmanuel F.; Orbeta, Aniceto C. Jr. |
| Abstract: | The growth of the Philippine economy has predominantly been led by the services sector. However, this growth pattern has resulted in increased employment primarily within subsectors characterized by relatively low labor productivity and wages. Given that the services sector accounts for the largest share of Gross Domestic Product (GDP) and employment among major economic sectors, enhancing productivity in labor-absorbing services is essential for both growth and equity. Analysis of labor productivity patterns reveals significant variation across services subsectors. While the Financial and Insurance Activities, Real Estate, and Information and Communication sectors have the highest productivity, the Wholesale and Retail Trade, Transportation and Storage, Accommodation and Food Service Activities, and Other Services sectors recorded the lowest. Low-productivity sectors primarily comprise low- to medium-skilled occupations. There is also variability in labor productivity within each subsector across regions. Regional disparities in productivity are most pronounced in the high-productivity sectors: Financial and Insurance Activities, Real Estate, and Information and Communication. In contrast, Transportation and Storage and Other Services exhibit the least variability in productivity levels. A mix of strategies is needed to enhance the capabilities of firms and workers and to incentivize them to upgrade. To increase labor productivity in the services sector, a high-level Theory of Change model was developed, focusing on four core strategies: management quality and practices, business innovation, workforce development, and technology adoption. Although broader structural reforms must also be pursued to create an operating environment conducive to upgrading, these reforms are beyond the control of individual firms. The umbrella Theory of Change provides a comprehensive and coherent framework to help the government more effectively identify pathways to connect interventions to desired outcomes, rationalize its investments to assist firms and workers, and adopt appropriate policy levers. Comments to this paper are welcome within 60 days from the date of posting. Email publications@pids.gov.ph. |
| Keywords: | labor productivity, services, labor market programs, productivity improvement programs, theory of change |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:phd:dpaper:dp_2025-46 |
| By: | A.Y. de Costa (University of Moratuwa); Vathsala Wickramasinghe (University of Moratuwa) |
| Abstract: | The confluence of innovative activities and leadership styles significantly influences the trajectory of organizational performance in Sri Lanka's information technology (IT) sector. Understanding the complex interactions between leadership behaviors and innovation is crucial for sustaining development and competitiveness in the face of the sector's rapid technical improvements, globalization, and changing consumer needs. This quantitative research delves into the intricate interplay between entrepreneurial leadership style, which has shown its potential to stimulate innovative thinking and risk-taking behaviors among employees, and exploratory innovation with a moderating effect of intrinsic motivation and environmental dynamism. Utilizing a sample size of 157 participants from the IT sector of Sri Lanka, the findings reveal that entrepreneurial leadership style has a significant positive relationship with explorative innovation. Furthermore, intrinsic motivation is found to be a significant negative moderator between entrepreneurial leadership and exploratory innovation. Environmental dynamism is found to positively moderate the relationship between entrepreneurial leadership and exploratory innovation. These results shed light on the nuanced influences of entrepreneurial leadership style, intrinsic motivation, and environmental dynamism on innovation activities in the IT sector, offering valuable insights for organizational leaders and policymakers seeking to foster a culture of innovation in dynamic environments. |
| Keywords: | Industrial and organizational psychology, Management science, Work motivation, Innovation, Leadership, Workplace innovation, Leadership and innovation, Moderating effects, Innovation performance, Employee motivation, Innovation management, Leadership styles, Environmental dynamism, Intrinsic motivation, Exploratory innovation, Entrepreneurial leadership |
| Date: | 2024–12 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-05480065 |
| By: | Jabrane Amaghouss (Cadi Ayyad University); Hanane Elmasmari (Cadi Ayyad University) |
| Abstract: | This study investigates the effects of financial inclusion on youth unemployment and mortality rates, using panel data from 17 countries in the MENA region over the period 2004-2022. Controlling for variables such as the ICT development index, economic growth, and inflation rates, the results reveal a causal relationship between financial inclusion and both youth unemployment and mortality rates. Moreover, the Fully Modified Ordinary Least Squares (FMOLS) model results support the hypothesis that an inclusive financial system contributes to reducing both youth unemployment and mortality rates in the long term. Additionally, the GMM estimates further corroborate the role of financial inclusion in achieving SDGs 3 and 8. In contrast, the control variables show that an increase in the ICT development index raises unemployment but reduces the likelihood of youth mortality. Meanwhile, economic growth and inflation rate have a relatively weak impact on both youth unemployment and mortality risk in the MENA region. |
| Date: | 2025–12–14 |
| URL: | https://d.repec.org/n?u=RePEc:erg:wpaper:1813 |