ICT Investment Research Articles

Trade liberalization and total factor productivity in Brazil: A vecm modeling.

This paper aims to investigate trade openness's effects on total factor productivity (TFP) using monthly data from December 1991 to March 2024. The analysis also incorporated absorptive capacity to examine the behavior of TFP components. Our findings from a multivariate VECM model indicated that absorptive capacity did not significantly impact TFP, even in the short term. Conversely, the increase in openness contributes to raising TFP by about 26 and 0.16 percentage points in the short and long term, respectively. Additionally, absorptive capacity and trade openness Granger-Cause short- and long-term components of TFP. These results are statistically significant at conventional significance levels. Policymakers should consider the dynamic effects of their policy actions on other sectors of the economy that were not initially the focus of the policy. Policymakers should develop concrete policies that improve the efficient use of resources in production chains to potentialize the productive impact of trade liberalization, including investment in human capital, ICT, and research and development.

The Importance of ICT Investment in EU Total Factor Productivity Growth: Industry Analysis for 2000-2020

The Importance of ICT Investment in EU Total Factor Productivity Growth: Industry Analysis for 2000-2020

Digitalization of the economy and sustainability of metallic mineral production

Due to the adverse impacts of climate change on the environment and biodiversity, sustainability has become a critical issue. This paper investigates the impact of digitalization on the sustainability of metallic mineral production, particularly CO2 emissions, within the Regional Comprehensive Economic Partnership (RCEP). Using data from 1998 to 2020 and the cross-sectional FMOLS technique, the study finds that a 1% increase in ICT investment reduces CO2 emissions by 0.32%, and a 1% rise in Internet access decreases emissions by 0.28%. However, electrification increases emissions due to higher energy demand and fossil fuel reliance. Economic growth and metallic resource trade volume also elevate emissions. Policy recommendations include smart urban development, sustainable rural electrification, fostering internet access, and implementing green logistics in metallic production trade to enhance sustainability in RCEP countries.

Comparative Study of Digitalization Impact on Global Goods and Services Markets in Advanced and Developing Economies

Abstract In the era of rapid technological progress, the influence of dizitalization on different aspects of international economic activity can’t be overstated. The aim of this article is to conduct a comprehensive comparative study of digitalization’s impact on global goods and services markets, with a specific focus on advanced and developing economies using multiple linear regression. The research methodology involved comprehensive data collection for 35-38 advanced economies and 52-66 developing economies depending on the availability of data. The analysis included depended variables (18 export and import goods sectors and 18 export and import services), independent variables (digitalization, consisting of ICT deployment, ICT export and import, ICT investment variables), control variables such as GDP growth, CPI, trade openness, exchange rate and political stability. The findings demonstrate the ICT infrastructure and ICT exports positive impact on export of technology-intensive goods, such as ores and metals, machinery and equipment, and tools and devices in advanced economies. Digitalization’s positive impact on trade in goods appeared weaker in developing economies, potentially due to lower levels of ICT adoption or differing export focuses. ICT export has positive impact on financial services imports, indicating a reliance on imported financial services while exporting ICT capabilities. The model shows a high success rate depending on variables. The study highlights digitalization’s varied impact on advanced and developing economies, emphasizing its importance for trade, competitiveness and policymakers in the global market.

The role of ICT investment, digital financial inclusion, and environmental tax in promoting sustainable energy development in the MENA region: Evidences with Dynamic Common Correlated Effects (DCE) and instrumental variable-adjusted DCE.

His research investigates the interplay among investment in Information and Communication Technology [ICT], digital financial inclusion, environmental tax policies, and their impact on the progression of sustainable energy development within the Middle East and North Africa [MENA] region. Recognizing the distinctive hurdles impeding sustainable energy advancement, effective policy formulation and implementation in MENA necessitate a comprehensive understanding of these variables. Employing a Dynamic Common Correlated Effects [DCE] model alongside an instrumental variable-adjusted DCE approach, this study explores the relationship between ICT investment, digital financial inclusion, environmental tax, and sustainable energy development. The DCE model facilitates the analysis of dynamic effects and potential correlations, while the instrumental variable-adjusted DCE model addresses issues pertaining to endogeneity. The results indicate that both ICT investment and the promotion of digital financial inclusion significantly and positively impact sustainable energy development in the MENA region. Additionally, the study underscores the importance of environmental tax implementation in fostering sustainable energy advancement, highlighting the critical role of environmental policy interventions. Based on these findings, governmental prioritization of ICT investment and initiatives for digital financial service integration is recommended to bolster sustainable energy growth in MENA. Furthermore, the adoption of efficient environmental tax measures is essential to incentivize sustainable energy practices and mitigate environmental degradation. These policy recommendations aim to create a conducive environment for sustainable energy progression in the MENA region, contributing to both economic prosperity and environmental conservation.

An Empirical Assessment of the Nexus between Agency Cost and Tax Compliance in Listed Firms in Nigeria

Tax compliance in listed firms poses challenges due to the inherent agency problems within the corporate structure that require additional administrative costs, which the company must incur to put the agent in check to achieve organisation targets. This study examined the effect of agency costs on tax compliance in listed firms in Nigeria. A cross-sectional time-series research design was used. The study population was 155 firms listed on the Nigerian Exchange Group (NGX) as of 31st December 2022. The study used 20 firms as a sample size using a purposive sampling technique. Data were obtained from the audited annual financial reports of the firms from 2013 to 2022. Panel data regression (PDR) was used to analyse the collected data. The findings revealed that monitoring costs measured by audit fees, audit specialisation, and ICT investment have an insignificant effect on tax compliance. In addition, the bonding costs measured by board remuneration and employee incentives showed an insignificant effect on tax compliance, while residual loss measured by Employee shareholding does not significantly affect tax compliance. The implication is that the agency cost incurred by the shareholders to reduce agency problems does not significantly affect their tax compliance. However, monitoring costs, bonding costs, and residual loss have negative and insignificant effects on tax compliance. The study concluded that the costs of the agency have no significant effect on tax compliance in listed firms in Nigeria. Firms should explore ways to enhance the effectiveness of monitoring, bonding and residual activities to ensure better alignment with tax compliance objectives.

Does Demographic Dividend Enhance Economic Complexity: the Mediating Effect of Human Capital, ICT, and Foreign Direct Investment

Does Demographic Dividend Enhance Economic Complexity: the Mediating Effect of Human Capital, ICT, and Foreign Direct Investment

ICT, Supply Chain Digital Integration Capability, and Firm Financial Performance: The Antagonistic Effects of Perceived Government Support and Cognitive Constraints on Digital Transformation

While awareness among managers regarding the benefits of digital transformation in supply chain management has grown, many Chinese SMEs have not fully embraced this shift due to ineffective ICT investments, a lack of effective government support, and the presence of related cognitive challenges. Leveraging a sample of 302 SMEs in China, the study employs SEM techniques to validate the direct effect of ICTs on the digital integration capability, and the relationship between the digital integration capability and firm financial performance. Furthermore, the LMS technique is applied to investigate the moderating role of government support and cognitive constraints within these relationships. Result shows that: (1) ICTs positively affect firm’s supply chain digital integration capability; (2) firm’s supply chain digital integration capability positively affects firm financial performance; (3) perceived government support exhibits an antagonistic effect, hindering the promotion of supply chain digital integration capabilities through ICT infrastructures; (4) Certain cognitive constraints related to digital transformation act as negative moderators within the digital transformation process. Through the exploration of two previously overlooked factors, namely perceived government support and cognitive constraints related to digital transformation, our research contributes to a deepened understanding of dynamic capability theory, social cognitive theory, and organizational inertia theory. Our findings suggest that government policymakers must reassess the effectiveness and objectives of policies in the digital transformation journey. Furthermore, firms are urged to acknowledge and address the potential adverse effects of cognitive constraints within their organizations and among their supply chain partners. Emphasizing the importance of digital integration capability is also crucial.

The determinants of labour productivity in the Eastern Cape Province: A sectoral and industry analysis

ABSTRACT The purpose of this study is to examine the determinants of labour productivity in the Eastern Cape. Furthermore, the study estimates the determinant of labour productivity from a sectoral and industry perspective. The technique employed for the empirical analysis is the ARDL bounds test. The empirical results highlight that investment in ICT, health and GDP growth are the crucial determinants of total labour productivity in the Eastern Cape. The sectoral analysis shows that primary sector labour productivity is driven by human capital and investment in ICT. Trade is the most important factor explaining labour productivity in the secondary sector while the tertiary sector is driven by R&D expenditures and ICT investment. The industry analysis revealed results similar to those of the sectoral analysis to some extent. The results imply that the shift to a knowledge-based economy is crucial for the Eastern Cape.

ICT in Higher Education: A Tool for Sustainable Development in West Africa.

ICT has been documented in literature to drive sustainable growth and development in many sectors as substantial growth may not be accounted for in isolation on the role of ICT. We looked at the role of ICT in higher education in West Africa region by examining two concepts of sustainable development goals (SDGs), the goal of quality education (goal 4) and the goal of industrial innovations and infrastructure (goal 9). Our idea is that ICT can be used as a tool in higher education to spread knowledge that could led to the attainment of sustainable development in the West Africa region. We examine the role of ICT in higher education on sustainable development by using cross sectional and ex post facto research design, purposive sampling was used to select five countries within the West Africa region based on the accessibility of data within the scope of 2013 and 2022. Active learning theory was used to underpinned the study while least square method of analysis was used as method of data analysis. The data were tested for linearity and the results of the study findings shows that the role of ICT in higher education positively affects sustainable development in the West Africa. The study recommends investment in ICT in higher education as an active learning tool to foster sustainable development as well as to optimally achieve sustainable development in West Africa.

The relationship between private ICT investment and the strength of legal rights indices

Investment in ICT has been identified as an important driver of economic expansion and development. It is yet unclear how ICT affects the legal rights index, which regulates the activities of businesses. The proposal's goal is to examine how private ICT spending compares to the index measuring the robustness of legal rights for companies in Europe and Central Asia. This research proposal will investigate the relationship between private ICT investment and the strength of legal rights indices for companies throughout Europe and Central Asia. Dataset WDI.csv from the World Bank will be utilized for the proposed ICT research. This dataset contains indicators such as the index of the strength of legal rights, fixed telephone customers, and investment in public-private partnerships. R-studio will be used to do the actual analysis pf the research findings. The results will help fill gaps in our understanding of how information and communication technologies affect the legal frameworks that govern businesses' operations, and they will inform policymakers and business managers about the value of ICT investment in bolstering the legal rights index and creating a favorable setting in which businesses can thrive.

The 4th Industrial Revolution Effects on Industrial Production of South Africa

This study examines how critical South Africa's response to the fourth industrial revolution industrial production. In a developing continent like Africa technological advancements have been rather slow, and adapting to those technological changes has been challenging. Since the age of artificial intelligence entered the economic market and there is an increased demand to implement more Artificial intelligence in production. This study looks at how can more fourth industrial production be employed without having an impact on markets like employment, and whether is it a given possibility with the low levels of energy generation, ICT investment, industrial production performance, ICT development, and human capital development. The endogenous growth framework frameworks evaluate the statistical significance elements of economic growth, such as investments in human capital, knowledge, and innovation. The Cobb-Douglas production functions framework shows the technological connection between two or more inputs and how much output they may produce. These results show the correlation between non-stationary time sequences over the long term and for a given time period. The six variables and total industrial production in the study revealed positive correlations between growth and human capital investments and causation. This means that growth benefits are to some degree being directed toward the improvement of the skill sector and financing. This indicates that the industrial sector supported the labour market.

Exploring decoupling relationship between ICT investments and energy consumption in China's provinces: Factors and policy implications

Prior studies on ICT and energy consumption in China lack exploration of the decoupling relationship and reasons and fail to propose policy implications for provinces based on energy and ICT investment features. We investigate the decoupling relationship between ICT investments and energy consumption in China's 30 provinces, exploring factors impacting decoupling using the Generalized Divisia Index Method decomposition analysis, including ICT investment scale, revenue scale, gross investment scale, energy intensity of ICT investment scale, energy intensity of ICT revenue, energy intensity of gross investment, ICT investment structure, and efficiency. We find most Chinese provinces showed weak decoupling between energy consumption and ICT investment from 2006 to 2020, except for Beijing, Tianjin, Sichuan, and Hubei which achieved strong decoupling during the 13th Five-Year-Plan period. In many provinces, ICT investment, ICT revenue, and gross fixed asset investment led to an increase in the decoupling index, but energy intensities of these factors were found to significantly reduce the decoupling index. Furthermore, we use K-Means clustering to classify China's provinces based on four ICT-related factors and propose targeted energy-saving policies for each cluster, considering their respective ICT investment characteristics.

경쟁강도와 시장수요의 환경불확실성 하에서 ICT투자가 제조업의 비재무적 운영성과에 미치는 영향

This study defines ICT smartization as the convergence of information, information technology, information systems, and manufacturing and production processes, and aims to identify the empirical impact of the ICT smartization on non-financial operational performance. In addition, it aims to identify environmental uncertainty and the empirical impact of ICT investment as antecedent factors that affect ICT smartization. To this end, this study utilized the business panel survey from the Korea Labor Institute. After reliability and validity analysis, multiple regression analysis and regression analysis were performed. As a result, environmental uncertainty and ICT investment had a significant effect on ICT smartization. As a result, ICT smartization had a positive effect on each operational performance. Meanwhile, as a result of the verification of the mediating effect of ICT smartization in the relationship between ICT investment and individual operating performance, it was confirmed that ICT smartization has a significant indirect mediating effect. This study theoretically confirmed the effectiveness of integrating ICT and information through ICT investment into the production process by verifying the mediating effect of ICT smartization in the relationship between ICT investment and each operational performance.

Two Aspects of Digitalization Affecting Financial Asset Allocation: Evidence from China

ABSTRACT The digital economy has a significant influence on the financial behavior of enterprises. According to the panel data of A-share listed enterprises in the manufacturing industry from 2010 to 2020, we discuss how manufacturing enterprises allocate their financial assets in the process of digitalization from the perspective of operating profit and risk taking. The results reveal that ICT investment significantly reduces financial asset allocation, while digital transformation improves the financial asset allocation of manufacturing enterprises. Because ICT investment increases operating profit from the main business, manufacturing enterprises reduce the allocation of short-term and long-term financial assets. We thus propose two phenomena: precautionary saving and substitutional investment. As digital transformation increases risk taking, financial assets are elevated by manufacturing enterprises for the precautionary saving motivation, boosting the short-term financial assets in their portfolios. These findings are further supported by the heterogeneity of innovation characteristics and ownership.

The Dynamic Impact of Financial Inclusion and ICT Diffusion on Sustainable Economic Development: Evidence from the MENA Region

This study investigates the dynamic relationship between financial inclusion, ICT development, renewable energy, and sustainable economic growth in the MENA region. Recognizing the growing importance of these factors in shaping the trajectory of sustainable economic development. This paper aims to contribute to the existing literature by providing new evidence from the MENA region, on how the interaction between financial inclusion and ICT development can lead to higher economic growth. This Study examines the impact of ICT diffusion and financial inclusion on economic growth by using an economic growth model that incorporates the joint effect of these two factors. The study employs dynamic panel system GMM estimation and focuses on a sample of 15 countries in the MENA region from 2004 to 2021. The findings reveal significant and positive associations between financial inclusion, ICT development, and sustainable growth in the MENA region. The findings reveal that financial inclusion has a positive effect on growth, ICT is expected to enhance growth by improving digital skills and increasing the efficiency of the financial market, particularly in the banking sector. Effective use of ICT, such as branchless banking and mobile banking, can be cost-effective and improve financial accessibility for previously marginalized individuals, thereby fostering financial inclusion. The interaction effects between ICT diffusion and finance are positive, indicating that the combined impact of ICT and financial inclusion can mitigate the negative effects of ICT investments.

Factors Explaining ICT Investment Behavior of Firms During the 2008 Economic Crisis

ABSTRACT In this paper, we develop a set of research hypotheses concerning the effects of six groups of factors on firms’ behavior during the 2008 global economic crisis with respect to ICT investment: three groups of internal factors (overall firm resource endowment, ICT-related resource endowment, ICT-related capabilities) and three groups of factors (competition, liquidity problems, macroeconomic conditions concerning demand). These research hypotheses are tested using data from Greek firms for the economic crisis period 2009–2014.

Investigating The Impact of Ict Developments on the Environment in the Digital Economy and Green Economy in Southeast Asia

Purpose: This study examines information and communication technology's effects on industry revolution 4 on the environment as an effort to develop a digital economy and a green economy in Southeast Asia that is part of the ASEAN organization. Design/methodology/approach: We use the variables of growth (GDP), green energy, investment in ICT, and the environmental footprint of Southeast Asia in our study. We use secondary data from the Global Footprint Network and the World Bank with a research period from 1990 to 2020. We apply the ARDL technique to determine the relationship between the variables and their direction of causation. Findings: The impact of ICT on environmental sustainability did not have a significant impact, meaning that the development of information and communication technology is very feasible to be developed to support the green economy as well as the digital economy. Where the use of green energy has a significant negative impact on the ecological footprint which is getting better for environmental sustainability as well as trade openness. Technology shows that technological developments during the research period are increasingly friendly to the environment. Research, Practical & Social implications: This research provides an overview of the economy and the environment and how to develop a green economy Originality/value: This study investigates three interrelated sectors, namely digital, environment and economy

ICT Investment, Adoption of ISO 14000 Certification, and Export Performance in Indian Manufacturing Plants

ICT Investment, Adoption of ISO 14000 Certification, and Export Performance in Indian Manufacturing Plants

Knowledge management through information and communication technology investments: the story of Indian family firms

PurposeInformation and communication technologies (ICT) are indispensable tools for Knowledge Management (KM) practices in today’s knowledge-intensive and globally interconnected marketplace. This paper seeks to investigate the impact of family ownership on ICT investments in an emerging economy (EE) context.Design/methodology/approachThis empirical paper uses data from 300 large Indian listed firms with 2,650 observations in the period 2008–2017, to test its hypothesis.FindingsThe results indicate that family firms are not favourably inclined towards ICT investments for formalizing their KM practices. However, under certain contexts, such as higher foreign institutional ownership or business group affiliation, they are more willing to invest in ICT resources.Practical implicationsThis study establishes a nuanced understanding of how family firms approach ICT investments and KM practices. This research can help family owners/managers to commit sufficient resources on ICT projects.Originality/valueLiterature on KM has largely emanated from developed countries. This is one of the first papers from an EE context that studies the impact of family ownership on ICT investments and subsequent KM practices. In this way, this paper offers specific insights into the context of Indian family firms and offers some interesting findings that can contribute to the literature, policy and practice.