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Measuring ICT externalities and their contribution to productivity: a bilateral trade based approach

Author

Listed:
  • Keung-Oui Kim

    (RITM - Réseaux Innovation Territoires et Mondialisation - Université Paris-Saclay)

  • Ahmed Bounfour

    (RITM - Réseaux Innovation Territoires et Mondialisation - Université Paris-Saclay)

  • Alberto Nonnis

    (RITM - Réseaux Innovation Territoires et Mondialisation - Université Paris-Saclay)

  • Altay Özaygen

    (LITEM - Laboratoire en Innovation, Technologies, Economie et Management (EA 7363) - UEVE - Université d'Évry-Val-d'Essonne - Université Paris-Saclay - IMT-BS - Institut Mines-Télécom Business School - IMT - Institut Mines-Télécom [Paris], RITM - Réseaux Innovation Territoires et Mondialisation - Université Paris-Saclay)

Abstract

This paper studies the contribution of information and communication technology (ICT) to productivity both directly – and indirectly, via externalities that originate in other sectors or countries.Building upon the theoretical model proposed by Basu et al. (2003), we include several features to account for two important aspects of ICT: complementarity with other intangibles, and externalities among different sectors. We propose several measures of externalities, distinguishing between foreign and domestic spillovers, and inter- and intra-industry spillovers. We focus on domestic spillovers, and compare a standard measure with a measure computed by weighting the ICT capital of other industries with bilateral sectoral trade.We find that results are affected by the way spillovers are measured. Evidence in favour of domestic externalities is only found when using the second measure, meaning that spillover effects only exist among industries that are connected via international trade. Foreign spillover effects are not detected.

Suggested Citation

  • Keung-Oui Kim & Ahmed Bounfour & Alberto Nonnis & Altay Özaygen, 2021. "Measuring ICT externalities and their contribution to productivity: a bilateral trade based approach," Post-Print hal-03825279, HAL.
    • Handle: RePEc:hal:journl:hal-03825279
    DOI: 10.1016/j.telpol.2020.102085
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    Citations

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    Cited by:

    1. Vu, K. & Asongu, S., 2023. "Patterns and drivers of financial sector growth in the digital age: Insights from a study of industrialized economies," Research in International Business and Finance, Elsevier, vol. 66(C).
    2. Ya Wu & Yin Liu & Minglong Zhang, 2023. "How Does Digital Finance Affect Energy Efficiency?—Characteristics, Mechanisms, and Spatial Effects," Sustainability, MDPI, vol. 15(9), pages 1-24, April.
    3. Heikkilä, Jussi & Rissanen, Julius & Ali-Vehmas, Timo, 2023. "Coopetition, standardization and general purpose technologies: A framework and an application," Telecommunications Policy, Elsevier, vol. 47(4).
    4. Lee, Chien-Chiang & He, Zhi-Wen & Xiao, Fu, 2022. "How does information and communication technology affect renewable energy technology innovation? International evidence," Renewable Energy, Elsevier, vol. 200(C), pages 546-557.
    5. Agus Salim & Jun Wen & Anas Usman Bello & Firsty Ramadhona Amalia Lubis & Rifki Khoirudin & Uswatun Khasanah & Lestari Sukarniati & Muhammad Safar Nasir, 2024. "Does information and communication technology improve labor productivity? Recent evidence from the Southeast Asian emerging economies," Growth and Change, Wiley Blackwell, vol. 55(1), March.
    6. Nonnis, Alberto & Bounfour, Ahmed & Kim, Keungoui, 2023. "Knowledge spillovers and intangible complementarities: Empirical case of European countries," Research Policy, Elsevier, vol. 52(1).
    7. Lin, Boqiang & Huang, Chenchen, 2023. "How will promoting the digital economy affect electricity intensity?," Energy Policy, Elsevier, vol. 173(C).
    8. Zhao, Haoran & Guo, Sen, 2023. "Analysis of the non-linear impact of digital economy development on energy intensity: Empirical research based on the PSTR model," Energy, Elsevier, vol. 282(C).

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