ICT Development Index Research Articles

Similarities and differences between digitalization indexes

<p class="MsoNormal" style="margin-top: 12pt; text-align: justify;"><span lang="EN-US" style="font-family: 'times new roman', times, serif; color: black; font-size: 14pt;">Digitalization is nowadays one of the fastest developing processes. The adoption of digital technologies can provide innumerous opportunities for the organizations to evolve and gain competitive advantage by leveraging of technologies to respond to dynamic expectations and demands. Information about the country digitalization level is essential to decision makers in both public and private organizations. It can present insights on which areas need the most investment, and furthermore to gain feedback on the outcomes of these investments. For companies, it can create a certain predictability on which products and services will be required the most. To assess the evolution of this process in different countries, various indexes were proposed and employed by different corporations. The Digital Economy and Society Index (DESI) and ICT Development Index (IDI) are used by public organizations. Digitalization Index (DiGiX) and Cisco Digital Readiness Index (CISCO) are used by private companies. Comparing two sectors highlights the most common factors of digital evaluation. Indexes are analyzed thoroughly by their structure, coverage, weights, methodology and ranking. The result of the practical work is a equivalence table which shows the percentage of their similarity. Additionally, a new digitalization index is proposed, based on the result of the previous comparison, which can be applied to analyze both public and private sector of the country’s digitalization level. </span></p>

ICT Development Index and Its Role in the FDI - Growth Nexus: Evidence from G-20 Economies

The collective GDP of the G20 nations constitutes over 80% of the global GDP, making them pivotal recipients of significant economic investments in various forms including foreign direct investments. This study delves into the dynamic interplay of ICT development and foreign direct investment (FDI) and GDP nexus among the G20 economies. A comprehensive index is constructed using PCA to gauge ICT development across economies. The study further examines the relationships among FDI, ICT development, and GDP using panel data spanning from 2000 to 2019. The study finds that in the absence of interaction, FDI alone does not exhibit a statistically significant impact on GDP. However, considering the interaction between FDI and ICT, a nuanced pattern emerges. The study discerns that the influence of FDI on GDP is contingent upon the maturity of a country's ICT sector. This suggests the need for policymakers to adopt a more focused approach, tailoring strategies to leverage the interdependence of FDI and ICT for optimal economic growth.

Enhancing Human Development Quality in Indonesia: Socio-Economic and Technological Capabilities

Research Originality: Human development is a complex issue faced by various countries worldwide. Technology is considered to have the potential to significantly impact the landscape of human development due to its potential for penetration. This research contributes to the development literature in Indonesia by focusing on the important aspects of the influence of socio-economic factors and technological capabilities on the quality of human development.Research Objectives: This research aims to analyse how socio-economic and technological capabilities influence the quality of human development in Indonesia.Research Methods: Using panel data from 34 provinces spanning the period from 2015 to 2022, the research employs a Panel Data Regression Analysis model with the best-fitted Fixed Effect model.Empirical Results: The results of this study indicate that socio-economic factors, as seen through unemployment and poverty, significantly negatively impact Indonesia's Human Development Index (HDI). Economic growth has an insignificant effect on Indonesia's HDI. Technological capabilities, measured through the ICT Development Index, and the proportion of adolescents and adults aged 15-59 with ICT skills, have a significantly positive impact on Indonesia's HDI.Implications: The results of this research identify factors that can either encourage or hinder HDI, offering valuable insights for government policymakers to enhance HDI in Indonesia, particularly in each region.JEL Classification: O15, O30, O47How to Cite:Setyowati, I. Y., Malik, N., & Suliswanto, M.S.W. (2024). Enhancing Human Development Quality in Indonesia: Socio-Economic and Technological Capabilities. Etikonomi, 23(1), 93 – 108. https://doi.org/10.15408/etk.v23i1.35508.

Do ICT Development and labor force foster Economic Growth in Indonesia?

Purpose: This paper aims to determine the ICT Development Index and other supporting variables affecting Indonesia's economic growth.Methods: This study uses secondary data from 1996-2019. Using economic growth variables as endogenous variables, and labor force, gross fixed capital formation (GFCF), cellular phones per 100 people, fixed telephones per 100 people, and internet users as exogenous variables. The data analysis technique used OLS multiple linear regression with eviews 9 application.Finding: The neoclassical theory developed by Solow (1957) a name "Growth Accounting" that economic growth formed from the factors of production and technology. This finding only the variable Mobile cellular per 100 people does not affect economic growth in Indonesia, and other variables are significant.Novelty: This study uses an innovation variable, namely the ICT Development Index, to complement the variables of production factors (labor and GFCF). This study focuses on Indonesia because it is about Indonesia's potential use of technology and information, among indications of the use of telephone and internet users in Indonesia.Implications: Further research can apply other ICT Development variables such as ICT exports or use the other countries.Keyword: GDP, Gross Fix Capital Formation, Internet User, Labor Force.

UKRAINE'S POSITION IN INTERNATIONAL RANKINGS ASSESSING THE LEVEL OF DIGITAL DEVELOPMENT OF COUNTRIES

In recent years, the utilization of digital technologies and the promotion of a country's digital development have emerged not only as a strategic necessity but also as a key determinant of its competitiveness on the international stage. The article extensively scrutinized the Digital Competitiveness Index, assessing Ukraine's position within the overall index. Additionally, it evaluated the significance of its components, such as knowledge, technology, and future readiness. The subfactors were also analyzed, allowing the identification of strengths and weaknesses in Ukraine's digitization process. Furthermore, the Digital Economy and Society Index and the Ease of Doing Digital Business Index were examined, both of which do not evaluate Ukraine's developmental level according to the specified indicators. Additionally, the ICT Development Index, which has not been evaluated since 2018, was explored. The obtained results could be utilized in constructing a business process transformation strategy, identifying priority areas, opportunities, and obstacles for the integration of digital technologies into enterprise operations.

Pemanfaatan Augmented Reality (AR) sebagai Media Pembelajaran Kelas VII SMPN 1 Rambah

The development of information technology by the International Telecommunication Union (ITU), Indonesia is ranked 108 out of 167 countries in the world in the ICT Development Index (IDI). Learning media is needed as an intermediary for conveying messages, in order to minimize failures during the communication process. The selection of learning media must be attractive to students so that it is not boring. Augmented Reality (AR) must be implemented in schools, because the use of Augmented Reality (AR) as a learning medium can further enhance student enthusiasm for learning with its advantages. Research uses research and development (research and development) by utilizing Augmented Reality (AR) technology. The product developed is Augmented Reality (AR) technology-based learning media for social studies subject matter on geographical location with sample data of 10 class VII students of SMPN 1 Rambah. The research objective is to find out the increase in Augmented Reality (AR) learning media in improving the quality of learning. The class teacher's assessment includes aspects of the quality of media display, software engineering, presentation of material, use of language, evaluation, implementation, and curriculum. Overall an average score of 4.23 or 84.6% is categorized as good (B). Student responses regarding the implementation of the use of AR in every aspect, namely interest in learning, ease of understanding, display, and implementation. The highest results were obtained on the aspect of interest in learning, namely 94% in the very good category (SB), so it can be concluded that AR is very helpful in increasing student interest in learning.

Does it hurt or help? Revisiting the effects of ICT on economic growth and energy consumption: A nonlinear panel ARDL approach

In this paper, we investigate the effects of information and communication technology (ICT) on economic growth and energy consumption for a panel of 27 countries ranked top of the ICT Development Index, from 1990 to 2019. By employing the panel nonlinear autoregressive distributed lag (NARDL) model approach, we confirm the presence of a long-run asymmetric effect of ICT on economic growth and energy consumption. Specifically, negative changes (reduction) in the adoption and usage of ICT can have severe consequences on economic growth in these 27 countries in the long-run, erasing all previous gains from positive ICT changes. Additionally, positive or negative shocks to ICT in these countries increase energy consumption, indicating the rebound effect exists in these countries. Finally, the results also reveal that, while the economic growth in these countries is dependent on energy consumption in the short-run, it is energy independent in the long-run. Several important policy implications are drawn.

The Effect of Human Resource Quality and Technological and Market Accesses on Creative Economy Development in Indonesia

This study primarily aimed to analyze the effect of the human development, Information, Communication, and Technology development index, and creative economy export value on the gross domestic product of the creative economy. Data were analyzed using multiple linear regression with Eviews 12. Study samples were time series data of creative economy GDP, Human Development Index, ICT development index, and creative economy product export values between 2007 and 2020. This study found that: (1) HDI significantly and partially affects the creative economy GDP, (2) the ICT development index significantly and partially affects the creative economy GDP, (3) creative economy product export values significantly and partially affect the creative economy GDP, and (4) HDI, ICT development index, and creative economy export values significantly and simultaneously affect the creative economy GDP. The result of this study suggests the need for the government to improve education quality, build sufficient, equal ICT infrastructure, and make regulations that facilitate creative economy actors. The creative economy actors are recommended to develop more creative products, while educators are suggested to develop more innovative learning methods.

How can visual communications aid in renewable energy development?

The development of information and communication technology (ICT), a subset of many functions such as visual communication, can positively affect renewable energy development in different countries. In this paper, focusing on China as the world's largest emitter of greenhouse gases, the relationship between visual communication and the deployment of renewable energy is investigated using the dynamic ARDL (autoregressive distributed lag) method and annual data from 1990 to 2021. Regarding the empirical estimations, a 1% increase in green finance market size leads to an improvement of sustainable energy deployment by 0.01%. In addition, the ICT development index has a significant and positive effect only in the long term. Furthermore, there is evidence of uni-directional causality from ICT to renewable energy deployment in the medium and long term. The recommended practical policies by the research are developing green financing tools, green economic growth policies, and creating virtual portals for financial interactions.

Do Government Policies and Socioeconomic Conditions Affect Income Inequality?

The problem that is often faced by developing countries is high-income inequality among the population. On the other hand, the development of digital technology occurs very quickly and encourages the community to play a more active role in economic activities. This condition needs to be further explored, especially considering its relation to income inequality in Indonesia. This study aims to determine the effect of government policies and socioeconomic conditions on income inequality in Indonesia in the 2019-2021 period by analyzing secondary data in 34 provinces in Indonesia. The analytical method uses panel data regression with the selected model of the fixed effect model. The data was taken from the Central Bureau of Statistics, each provincial government's Directorate General of Finance, and the Ministry of Manpower of the Republic of Indonesia. The results showed that the number of poor people significantly positively affected income inequality and regional minimum wages, and the information and communication technology development index negatively affected income inequality. In contrast, the human development index and social assistance spending had no impact on income inequality. The government must improve poverty alleviation programs to reduce the income inequality gap while expanding the accessibility of Information and Communication Technology (ICT) to provide a better quality of life for the people. This study enriches previous research on the effect of socioeconomic conditions on income inequality by adding the newly developed ICT development index variable

Оцінка рівня цифровізації економіки України та країн – членів ЄС

The aim of the article is to assess the level of digitalization of the economy of Ukraine and the EU countries using international indices and rankings. In international practice, various rankings and indices are increasingly used to assess the progress of countries around the world in the field of digitalization. The most common rankings that characterize the level of digitalization of the national economy include: the Digital Economy and Society Index (DESI); the ICT Development Index; the E-government development index; the Global Cybersecurity Index; the ranking of countries by the level of open data development (Open Data Maturity), etc. The presented international indices summarize the relevant indicators that characterize the effectiveness of digital technologies in the countries of the world; accessibility and quality of mobile communications, the Internet, and digital public services; protection from cyber threats; effectiveness of State policy in the field of open data. The features of formation and constituent components of international rankings and indices, used to assess the level of digitalization of the economy, are considered. The EU countries that are leaders in the digitalization of the economy include: Denmark, Estonia, Poland, Finland, France. The competitive disadvantages of Ukraine in comparison with the EU countries in terms of the components of international indices are determined. The vectors of digital development of Ukraine have been formed as follows: ensuring high-quality communication by expanding access to broadband Internet and its quality; improvement of telecommunications infrastructure; security against cyber threats; strengthening the effectiveness of the State digital policy. It is concluded that in Ukraine there is a potential for increasing the partial indicators that form integral indices, which are used in international practice to assess the level of digitalization of the economy.

SIMULTANEOUS SPATIAL DURBIN FOR PANEL DATA WITH TWO WAY ERROR COMPONENT MODEL

This study developed a Simultaneous Spatial model for panel data using Simultaneous Spatial Durbin Model for panel data with two way error component by using Generalized Spatial Two Stage Least Square (SSDPDTWEC GS2SLS). Based on the results of the simulation data, it can be concluded that the SSDPDTWEC GS2SLS model is better than Simultaneous Spatial Durbin for panel data with one way error component using Spatial Two Stage Least Square (SSDPDONWEC S2SLS), SSDPDONWEC GS2SLS, and SSDPDTWEC S2SLS, because it has a smaller mean of square error (MSE) and has a larger coefficient of determination (R Square) value.
 Based on the results of the SSDPDTWEC GS2SLS Model to endogenous economics growth data in Indonesia from 2015-2020, it can be concluded that Gross Regional Domestics Product (GRDP) is significantly affected by Human Development Index (HDI), Poverty (POOR), spatial dependencies of the HDI (WHDI), spatial dependencies of poverty (WPOOR) and spatial dependencies of GRDP (WGRDP), while Information and Communication Technology Development Index (ICTDI) and spatial dependencies of ICTDI (WICTDI) have no significant effect on GRDP. For ICTDI is significantly affected by HDI, WHDI and WICTDI, while GRDP, Direct Expenditure (DE), WGRDP and spatial dependencies of direct expenditure (WDE) have no significant effect on ICTDI. HDI variable is significantly affected by ICTDI, WICTDI, and WHDI while GRDP and WGRDP have no significant effect on HDI. There is no spatial simultaneity relationship between GRDP and HDI as well as GRDP and ICTDI, while between ICTDI and HDI there is a spatial simultaneous relationship.

THE FEATURES OF BUSINESS DIGITIZATION DEVELOPMENT INDICATORS IN SELECTED ECONOMIES

Digitization increases operations efficiency, innovative processes, value creation and delivery in business activity. Many developed countries use digital transformation as one of the strategies for improving their enterprises operations. Business digitization highly depends on country financial investments to network physical infrastructure, relevant skills, various regulations, use and adoption of technologies. However, there are still large differences in business digitization across countries. The aim of the study is to perform a comparative analysis of business digitization development indicators in Lithuania and Bulgaria. The aim was reached by performing a theoretical justification of the concept of business digitization and to identify the main conditions and development indicators of business digitization, and by conducting a comparative evaluation study of business digitization development indexes and indicators. The overview of literature of business digitalization was conducted and it was found that the difference between Industry 4.0 and Industry 3.0 is that the latter was based on the global transition of specimen data from analogue to digital signals, and the Industry 4.0 develops on Industry 3.0. Also, it was found that the development of business digitalization is closely related to the country's level of digitalization, which depends on several conditions, such as: digitalization-related government decisions, regulation, communication infrastructure and availability, skills, financial incentives, and the use of technology. The research was conducted by comparing five dimensions of Digital Economy and Society Index (DESI) 2022 that are: Connectivity, Digital skills, Use of Internet, Integration of Digital Technology, Digital Public Service, and three dimensions of ICT Development Index (IDI) 2017 that are: Access, Usage and Skills. The results of DESI 2022 and IDI 2017 showed that Lithuania in both indexes ranks higher than Bulgaria, and the weakest area in Lithuania is DESI 2022 dimension of Connectivity. Thus, more targeted investments for the development of 5G network development and accessibility is needed for better adoption and development of intelligent technologies that are the future of all businesses, and society.

E-GOVERNMENT MATURITY LEVEL ANALYSIS (STUDY ON 35 GOVERNMENT WEBSITES IN CENTRAL JAVA)

This study examines maturity level of E-Government in 35 websites government in Province Central Java. The reason for choosing the location of Central Java Province is the province has a high ICT Development Index (IP-TIK) but not in line with the high Indonesian e-government rating either. So that measuring the maturity of websites in all 35 cities in Central Java Province is important so that these regions make improvements This study uses a government maturity model, there are 5 variabels: Simple Information, Two-way Communication, Service and Financial Transaction, Integration and Political Participation. This study method uses a quantitative approach. Then, This study uses descriptive statistical analysis techniques. The result of this study is 35 websites government in Province Central Java has a level of immature maturity model. With details that of the five variables, 2 of them have a very low level of maturity and 1 of them has a medium maturity level.

Information and Communication Technology (ICT) on Economic Growth in Asia: A Panel Data Analysis

Information and communication technology (ICT) plays an increasingly important role in driving economic growth and sustainability. Asia, being the most heterogenous region in terms of ICT development, consist of both most connected and least connected countries based on the global ICT Development Index 2017. Therefore, this study investigates the impact of ICT on economic growth for 20 Asian countries from year 2000 to 2020. Using the robust panel Fixed Effect model and Panel Feasible Generalized Least Squares method, findings revealed that fixed telephone subscriptions, mobile cellular subscriptions and Internet users are the ICT variables that have significant and positive effects on economic growth in Asia. Fixed telephone subscriptions however, emerged insignificant which could be due to its high cost and low practicality relative to other forms of ICT. Findings from this study benefit related parties such as firms and policymakers by encouraging adoption and usage of mobile phones and the Internet through provision of adequate infrastructure and affordable ICT services.

Analisis PDRB 34 Provinsi di Indonesia Pada Masa Pemerintahan Presiden Joko Widodo


 
 
 
 This study is intended to analyze the direct influence of education, labor, information and communication technology development index (ICT-DI), and domestic investment (DI) on the gross regional domestic product (GRDP) of 34 provinces in Indonesia during the government period. President Joko Widodo. This study uses secondary data in the form of panel data, 2015-2020, using the variables of average length of school, working population, information and communication technology development index (ICT-DI), and domestic investment (DI). The analytical method used is Ordinary Least Square (OLS). The results showed that education and manpower had a significant effect on the GRDP of 34 provinces in Indonesia, while the ICT development index and DI did not significantly affect the GRDP of 34 provinces in Indonesia. For this reason, the government should be able to intensify the development of communication infrastructure and provide various trainings, especially for residents in archipelagic provinces, so that the value of ICT-DI can be increased. and also the government to get domestic investment as much as possible can be maximized again because, high and stable DI can help Indonesia in economic development.
 
 
 

Digital Divide and A Spatial Investigation of Convergence in ICT Development Across Provinces in Indonesia

In the digital era, technology plays a much bigger role all over the world including in Indonesia. In fact, Indonesia’s ICT Development Index (IDI) has improved over time. However, it is noticeable that disparities among regions in regards to ICT development are still wide resulting in digital divide. This paper aims to examine the convergence of regions with regard to ICT development and analyze the key factors which drive the convergence process using annual data from 2015 to 2019. Spatial panel regression method is used to test for absolute and conditional beta convergence. The results reveal that there is evidence for the existence of absolute and conditional convergence in regards to ICT development in Indonesia. Regarding conditional convergence, the convergence process takes a shorter time to reach half-time convergence by taking into account several control variables consisting of output in ICT sector, FDI, and government allocation on education. In addition, the significant spatial correlation among provinces shows that the growth of neighboring provinces’ ICT development also contributes to the convergence process. This finding implies that the digital divide has declined and the factors mentioned above are important instruments to help bridge the digital divide.

Social-Economic Background of the Economic Digitalization in Indonesia

Currently, almost all activities of the world community are facilitated by technological developments. Including in the economic field, technology emerges, so the world community calls it economic digitization. Economic digitization is all economic activities based on digital technology. This paper each indicator such as the ICT Development Index or the Information and Communication Technology Development Index (IP-TIK), the Global Innovation Index or the Global Innovation Index (IIG), the Networked Readiness Index or the Network Readiness Index (IKJ), Share of Households with Internet or Internet User Households (RTPI) and High-Technology Exports (% of manufactured exports) or High-Technology Exports (ETT). The data used is secondary data taken from BPS related to IP-TIK, IKJ, RTPI and ETT.

ANALYSIS OF INTERNATIONAL RATINGS OF UKRAINE IN THE CONTEXT OF ENSURING ECONOMIC SECURITY

Factors that have a negative impact on the economy of the country were identified: geopolitical and financial and economic instability, inflationary fluctuations, migration processes, decline in financial stability of enterprises and their bankruptcy, etc. This necessitates the development of monitoring mechanisms, theoretical and methodological approaches and their practical implementation, aimed at the objective analysis and assessment of Ukraine's rating positions in the context of ensuring its economic security. This is an important methodological toolkit during the recovery and adaptation phase of the country's economy in the postwar period. The threats posed by hybrid warfare encompass all areas of the country's socio-economic development and negatively affect the level of its economic security. That is why the analysis of Ukraine's international rating positions should be comprehensive and aimed at identifying negative factors in order to develop appropriate programs and measures to minimize their impact and maintain the level of economic security of the state. The purpose of the study is to analyze the international ratings of Ukraine in the context of economic security. To analyze the rating positions of Ukraine in the context of economic security, a research panel containing general and specific international ratings and indices is used. The matrix of correspondence of international ratings and indices to the functional components of the economic security of Ukraine is constructed. A retrospective analysis of Ukraine's positioning in international rankings (ICT Development Index, Global Cybersecurity Index, Speedtest Global Index, ND-GAIN Country Index, International Property Rights Index, Fragile States Index, PowerIndex) was conducted. The methodological support for the calculation of these indices is considered. The results of the analysis show that most of the considered specific indices of independent rating agencies have a positive trend. The dynamics of the integral index of economic security of Ukraine for 2010-2022 is presented.

Evaluation of information support of national contract systems for the period of 2015-2018

The result of the study has an integrated nature and may be used for determination of the development of the national contract systems directions and their compliance with international rules of public procurement. To prove the hypothesis, as the basis of the study, the evaluation results of information system (official website, portal) may be adopted as support to the evaluation results of the national contract system information. National contract system is intended for a public procurement regulation. For hypothesis development, benchmarking of official websites of certain countries is carried out. It became the base of national contract systems' rating elaboration on criteria of information openness and transparency in the field of public procurement. Processed rating data use has been taken as a basis of open procurement index (OPI) calculation for a number of countries and OPI rating elaboration. The processed rating data results on certain countries are also used in benchmarking these countries' rating results on corruption perception index (CPI), ICT development index (IDI) and global e-government development index (EGDI).