Determinants of Inter-Country Internet Diffusion Rates

This paper employs cross-sectional data from 100 countries to analyze the main determinants of inter-country Internet diffusion rates. We set up an empirical model based on strong theoretical foundations, in which we regress Internet usage on variables that capture social, economic and political differences between these countries. Our results support past findings that economic strength, infrastructure and knowledge of the English language positively affect Internet connectivity. In addition to these indicators, the openness of a country, tertiary enrollment, and income equality are found to also have a significant positive effect on Internet diffusion.internet, technological diffusion, inequality, education, English proficiency

Long Term Factors of Internet Diffusion in Sub-Saharan Africa: A Panel Co- Integration Analysis

Identifying factors that influence the diffusion of the Internet is paramount for researchers as well as policy makers in articulating strategies to improve the availability and subsequent use of the Internet. Most existing empirical studies have focused on this problem by analyzing diffusion data for countries for one fixed year and identified variables affecting the Internet diffusion. These variables, generally, come from the economic, technological, policy, culture, and human capital realms. These results have provided a good “snapshot” of what factors are important towards the diffusion of the Internet and the results tend to vary for studies conducted in different time frames. This paper also addresses, the phenomenon of cross-country dependence – the economic, political, and technological environment of one country affecting other countries- into account in their analyses. This paper, for the first time in the literature, empirically identifies long-term determinants of the Internet diffusion in sub-Saharan African (SSA) countries by considering data for the period 1997-2013. It employs a recently-developed technique named “panel co-integration analysis” to model the diffusion of the internet among the SSA countries. The analysis reveals that in SSA countries, the number of telephones, the level of per capita real gross product and the extent of ruralization (conversely, the degree of urbanization) are the key long-term drivers of the diffusion of the Internet. Finally, the paper concludes with a discussion of policy implications

ICT as Technical Change in the Matching and Production Functions of a Pissarides-Dixit-Stiglitz model

In this paper we integrate two workhorse models in economics: Themonopolistic competition model of Dixit and Stiglitz and the search unemploymentmodel of Pissarides. Information and communication technology (ICT) is interpretedas i) technical progress in the matching function of the Pissarides labour marketsearch model where it is increasing the probability of filling a vacancy, and ii) astechnical change in the production function of the Dixit-Stiglitz goods market modelwhere it is increasing fixed costs and decreasing variable costs. All effects together,modelled as a permanent once-and-for-all ICT and Internet shock, increase thevacancy/ unemployment ratio, decrease the long-run equilibrium unemployment rate,and increase wages. Keywords: ICT, Monopolistic competition, unemployment.macroeconomics ;

E-handelns effekt på inflationen - En paneldatastudie om den ökande e-handelns konsekvenser

This paper has the purpose of analyzing whether the growing e-commerce is pushing down inflation. We have dealt with theories concerning how e-commerce might affect price setting and increase competition on consumer-, producer-, and market level. Data concerning 30 European countries during a time period between 2002-2014 was set into a panel data and analyzed in an econometric framework. Our results prove our hypothesis of a negative impact of growing e-commerce on inflation, and it becomes even stronger as we shorten the time period to recent years when e-commerce has grown more rapid in most countries. We also find proof of a short term effect since the effect is stronger in those countries with initially lower levels of e-commerce than in countries with a relatively high level.Denna uppsats har syftet att analysera huruvida den ökande e-handeln pressar inflationen nedåt. Vi har behandlat och undersökt varierande teorier gällande faktorer som berörs av den ökande e-handeln, främst hur den väntas påverka prissättning och produktivitet genom ökad konkurrens från tre olika nivåer: producent-, konsument- och marknadsnivå. Data har sammanställts till paneldata för 30 europeiska länder över tidsperioden 2002-2014, om vilken regressioner har genomförts för olika uppdelningar av data för att kunna påvisa ett antaget samband. Resultaten påvisar att det finns ett signifikant negativt samband. Ett samband som är starkare på senare år, och även starkare i länder där e-handeln befinner sig i en omställningsfas, dvs. där den relativt sett är mindre utvecklad

Contribution of the internet towards sustainable development through its economic growth, social capital and environmental effects

Spectacular growth in the use of the Internet has revolutionised many aspects of nations and human lives, including the key pillars of sustainable development such as economic, social and environmental aspects, among others. However, such phenomenal growth in the use of this enabling technology has also led to different forms of social inequalities, popularly known as ‘digital divide’. However, it is not merely the access divide that haunts the digital landscapes of the world today. With the rapid diffusion of the Internet technology, other forms of divide resulting from various factors such as age, education, speed and e-skills are emerging as potential threats to achieving the expected benefits from this general purpose technology. Empirical literature on the effects of the Internet support the view that digital divide potentially hampers the positive effects of the Internet. Currently, this is the central focus of the debate with regards to the potential economic, social and environmental effects of the Internet and the burning question is whether the Internet significantly impacts these three key parameters of sustainable development. This thesis seeks to answer this question through economic growth, social capital and environmental effects of the Internet – in the context of Organization of Economic Cooperation and Development (OECD) countries and in Australia, in particular. To accomplish this aim, this study is guided by four research questions: i) Does Internet use affect economic growth in OECD countries, and in Australia, in particular? ii) Does Internet use affect social capital in OECD countries and in Australia and regional Australia, in particular? iii) Does Internet use have any effect on electricity consumption in OECD countries, and in Australia, in particular? and iv) Does Internet use have any effect on CO2 emissions in OECD countries, and in Australia, in particular? In order to addressing these research questions, this study uses panel macro data for OECD countries, annual time series macro data for Australia, and quantitative survey data from regional Australia. Secondary data are obtained from the World Development Indicators Database of the World Bank. Data on social capital are gathered from the World Values Survey. An advanced panel data econometric estimation technique – the Pooled Mean Group (PMG) regression technique – is applied for panel data analysis, while the Autoregressive Distributed Lag (ARDL) model is used for analysis of time series data. Summated scale method is applied to quantify the social capital variable and multivariate regression technique is employed to examine the Internet–social capital nexus at a regional level. This PhD by publication thesis consists of seven chapters. The Introduction and Conclusions are presented in Chapter one and Chapter seven, respectively. A total of nine research outputs delivered by this research are presented in the remaining five chapters. Research question one is addressed in paper one and paper two. Research question two is addressed in papers three, four and five. Papers six and seven deal with research question three while research question four is addressed in papers eight and nine. Paper one and paper two examine economic growth effects of the Internet for OECD countries and for Australia respectively. In addition to enriching the existing literature on Internet-growth association, these two papers make a contribution by identifying the weaknesses of previous studies. Findings suggest that the Internet stimulates economic growth both for the panel of OECD countries and for Australia as well. Internet use data is analysed for the first time for Australia in paper two. To address research question two, the potential of the Internet in generating social capital is examined in papers three, four and five. Findings from both OECD panel and Australian time series investigations indicate that the Internet reduces social capital in the long run, while it slightly enhances social capital in the short run. Paper five analyses survey data to explore the relationship between the Internet and social capital in regional Australia. The survey data was collected from the Western Downs Region of Queensland. The social capital variable was constructed from five theoretically supported and statistically tested dimensions of social capital concept using summated scale method. These dimensions are; bonding social capital, bridging social capital, trust, neighbourhood effects and community engagement. This is believed to be a novel contribution to the existing literature on social capital measurement which suffers from intense debate on the topic. This paper also provides a conceptual framework on Internet-social capital relationship that may be a useful guideline for similar studies in future in regional context. The key finding indicates a positive relationship between Internet use and social capital implying that Internet-enabled network connectivity stimulates social capital in regional Australia. Research questions three and four deal with the environmental effects of the Internet. Research question three is addressed in papers six and seven – these papers investigate the effect of Internet use on electricity consumption for a panel of OECD countries and for Australia, respectively. In both studies, the Internet is found to cause an increase in electricity consumption. Such findings enforced the development of research question four, which investigates the CO2 emissions effect of the Internet. This is addressed in papers eight and nine. Both investigations found that Internet use does not have any significant effect on CO2 emissions. In other words, the growth in Internet use is still environmentally sustainable for these countries. All of papers six, seven, eight and nine are believed to make important empirical contributions to the literature on the environmental effects of the Internet. The findings from these studies are expected to provide stimuli for future researchers to examine such effects for other regions and countries. The conceptual framework of this study is believed to be a contribution by itself as it studies the effects of the Internet in all three key aspects of sustainable development (economic, social and environmental). Also, the massive literature review of all the three areas will enable future researchers identify research gaps in a relatively easier way for further investigations. This study offers a number of policy recommendations. To ensure expected economic benefits from Internet use, it is recommended in paper one and paper two that demand-side issues – such as education and skills – need more attention from policymakers responsible for framing and revising digital divide policies. Despite mixed findings on the Internet-social capital relationship from papers three, four and five, the inclusion of the social capital issue in digital divide policy should not be ruled out in the process of ensuring long-run success in addressing the digital divide. To achieve energy efficiency gains from the Internet and to exploit its emissions abatement potential, ‘green Internet’ and ‘Internet for green’ are strongly recommended in papers six, seven, eight and nine in order to combat future negative environmental effects of this technology. Finally, the overall findings from the investigations undertaken by this thesis confirm that the growth in the use of the Internet contributes towards sustainable development for the OECD countries as well as for Australia in particular

ICT and sustainable development in an outermost region

The aim of this research project is to understand the link between the adoption of ICT tools and the economic development of a peripheral region. This study is focused on the current status of adoption of ICT tools by a sample of SMEs operating in a peripheral island, the Autonomous Region of Madeira, Portugal. The overt optimism propagated by supra-national organisations such as the EU, stresses that the adoption of ICT tools constitutes one of the key strategic weapons in overcoming the peripheral/remote character and competitiveness problems of less-favoured regions. This argument is based on evidence (core region based) that suggests a causal link between investment in ICTs and economic growth. However, there is no evidence to prove such a linkage in peripheral regions. The argument developed in this thesis is that a large scale adoption of ICT tools may have neutral or even negative effects on regional development prospects, in the specific context of remote island economies. The development of this new line of reasoning assumes that the examination of the potential contribution of ICTs in increasing growth prospects should be based on: an indepth analysis of the territorial dynamics of the region under analysis; the growth options available in such a specific territory; the degree of preparedness to embrace ICT tools; and the local firms' response to the on-going technological revolution. It is concluded, in line with the expectations developed in the thesis, that the large scale adoption of sophisticated ICT tools - namely, the adoption of complex e-commerce platforms - has not occurred in Madeira. It is also evident that the widespread adoption of ICT tools cannot provide a short term answer to island development problems. The current growth path is strongly conditioned by geographical constraints and by specialisation in traditional sectors, which cannot be reversed overnight. However, although the adoption of ICT tools such as the Internet has not impacted upon the macro-economy level, it does have consequences at the micro (firms) level for those firms making intensive use of Internet functionalities. This study, although based on quite a specific geographical and economic context, may provide interesting theoretical insights to be explored further. In fact, it is suggested that the traditional EU approach focused on increasing levels of general awareness should be reoriented towards a more promising focal point such as increasing the levels of effective use of ICT tools. Finally, this research project provides evidence to suggest that in the absence of a favourable macroeconomic environment, the adoption and use of ICT tools only increases the 'selection mechanism' at work (ie which firms survive, and which fail). As larger firms have the greater capacity to adopt complex ICT tools, any advantage arising from the adoption of such technologies will be concentrated on those firms already at an advantage. In the end it can be asserted that the traditional development strategies (personified by investments in transport and other 'hard' infrastructures) should continue to be pursued for the time being, in order to avoid the negative consequences of reduced income transfers in the period until a new cycle of development can be established in islands such as Madeira.EThOS - Electronic Theses Online ServiceGBUnited Kingdo