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2017 | Book

Information and Communication Technologies for Economic Development Read chapter Read first chapter

Catalyzing Development through ICT Adoption

The Developing World Experience

Editors: Harleen Kaur, Ewa Lechman, Adam Marszk

Publisher: Springer International Publishing

Part of: Springer Professional "Wirtschaft+Technik" , Springer Professional "Technik" , Springer Professional "Wirtschaft"

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About this book

This book examines the role that Information and Communication Technologies (ICTs) play in growth and economic development promotion, specifically for developing countries. It highlights multiple methodologies for quantifying the impact of ICTs. This includes quantitative and qualitative methods, but also novel, conclusive and informative methodological approaches for measuring ICTs influence on economic development. The book highlights trends, perspectives, and success stories for different developing countries. ICTs bring new business models, innovations, capital-labor substitution, improved goods and services to developing markets. Because they can spread rapidly, with little cost and require minimal skills for usage, ICTs create a solid background for social and economic gains. They enable significant reduction in information asymmetries, which improves access to economic activities for multitude of agents, fostering participation, inter alias in labor market of disadvantaged societal groups. After almost two decades of rapid diffusion of ICT in developing world, this book seeks to assess the real benefits and consequences of ICTs adoption in developing countries. The chapters use broad, real-world based evidence to provide a better understanding of the precise nature of new technologies and their impact of the country`s economy and society.

Table of Contents

Frontmatter

General and Multiregional Studies

Frontmatter
Chapter 1. Information and Communication Technologies for Economic Development
Identifying the Channels of Impact
Abstract
This chapter is intended to explain why and how information and communication technologies may affect the process of socio-economic development, especially with regard to economically backward economies. It sheds light on why technological changes constitute prerequisites enabling advancements along the socio-economic development pattern. It is also designed to exhibit the special relevance of information and communication technologies when implemented in developing countries. Additionally it discusses the potential channels through which information and communication technologies may contribute to social and economic development in developing world, with the special focus on the financial systems.
Ewa Lechman, Adam Marszk
Chapter 2. The Impact of ICTs on Women’s Economic Empowerment
Abstract
It is widely argued that ICTs enable the inclusion of low-skilled and traditionally marginalized groups, such as women, people with disabilities, and workers at the base of the pyramid (BoP), in the labor market. In this paper, we investigate the determinants of female participation in the labor market in developing countries with a focus on the impact of the use of ICTs on female labor force participation. We conduct a panel study analysis for 60 developing countries in the time period 2000–2014. Our results confirm that there is rather a positive impact from the use of ICTs on female labor force participation in developing countries. Moreover, we show that gross national income (GNI) per capita, fertility rates, and income inequalities influence to some extent the level of women’s engagement in the labor market. Our results are robust against different control variables, as well as different ICT proxies.
Dagmara Nikulin
Chapter 3. Big Data Analytics for ICT Monitoring and Development
Abstract
The expanded growth of information and communication technology has opened new era of digitization which is proving to be a great challenge for researchers and scientists around the globe. The utmost paradigm is to handle and process the explosion of data with minimal cost and discover relevant hidden information in the least amount of time. The buzz word “BIG DATA” is a widely anticipated term with the potential to handle heterogeneous, complex, and unstructured data. We can say that big data has evolved as a monitoring tool for ICT to detect relevant patterns which were previous unknown. This chapter focuses on ICT and big data application in varied application domains. The aim is to design a framework for business data resources which gather at unprecedented pace and derive relevant information with big data analytics for better decision-making. In addition, this chapter discusses a novel framework where big data analytics is utilized as potential decision- making step for relatively better management policies.
Ritu Chauhan, Harleen Kaur, Ewa Lechman, Adam Marszk
Chapter 4. The Role of ICT Adoption in Curbing Corruption in Developing Countries
Abstract
Corruption is regarded as a major problem impeding development potentialities, and curbing it is a leading challenge for developing countries. This chapter assesses the possibilities of ICT adoption as a powerful tool for fighting corruption in developing countries that should be recognized by policymakers. We first consider the effects that corruption can have on economic development. Then, we explore the impact of ICT on corruption and particularly how Internet and mobile technologies can be effective in combating corruption. We also highlight the main obstacles and challenges that these countries may face in implementing ICT-based anti-corruption strategies. We address some policy recommendations pertaining to the adoption of ICT strategies in fighting corruption in developing countries.
Mohamed Sami Ben Ali, Seifallah Sassi
Chapter 5. Internet, Educational Disparities, and Economic Growth: Differences Between Low-Middle and High-Income Countries
Abstract
This paper examines the influence of educational inequality on the impacts of Internet use on economic growth. We use panel data estimations on a sample of 90 countries from 1995 to 2010. We find that Internet use has a positive impact on growth in both developing and developed countries. Furthermore, we also find that educational inequality negatively influences the impact of Internet use on economic growth, the effect being more significant in developing countries. The results highlight that in addition to the role played by the level of human capital, public policies should take into account the educational distribution to boost Internet use and favor its impacts on economic growth.
Margarita Billon, Jorge Crespo, Fernando Lera-López

Asia

Frontmatter
Chapter 6. Strengthening the Public Sector Accounting Through ICT: The Experience of a Developing Country
Abstract
This chapter aims to investigate the performance of public sector accounting (PSA) after introducing the computer-aided mechanism in a developing country, Bangladesh. Transparency and accountability which are assumed as the accelerator for the development of a nation are urged for the PSA for a long time. For poverty alleviation, reformation of PSA in developing countries has been suggested by the donor agencies as well. Different mechanisms have emerged as a consequence for the demand of PSA reformation. As a part of reforming the PSA, Bangladesh has introduced Integrated Budget and Accounting Systems (iBAS), a computer-based network through the country. The iBAS has been introduced with the association of donor agencies. This chapter focuses on the gradual performance of some parts of the PSA (e.g., bill passing, check clearing) to investigate the effectiveness of Information and Communication Technology (ICT) in public sector accounting. The investigation, analysis, and discussion indicate that the iBAS is likely to have positive impacts on strengthening the PSA. Therefore, it is expected that the iBAS can impact favorably on efficient public expenditure. The experience of adopting the iBAS and the structure of the iBAS in Bangladesh have been introduced in the chapter as well.
Md Salah Uddin Rajib, Md Qutub Uddin Sajib, Mahfuzul Hoque
Chapter 7. Potentials and Challenges of Using ICT for Climate Change Adaptation: A Study of Vulnerable Community in Riverine Islands of Bangladesh
Abstract
Bangladesh is highly vulnerable to different impacts of climate change. It is argued that ICTs play a vital role in addressing the major challenges related to climate change. ICTs are widely used for communicating the information required for climate change adaptation through raising awareness at the grassroots level, providing access to relevant information, and facilitating learning and sharing of practical knowledge at the community level. Despite its usage, the existing and potential role of ICTs in climate change adaptation in Bangladesh is not notably evident in the literature. The literature hardly presents the potentials and challenges from an empirical perspective where vulnerable community offers the related perspective. Consequently, the paper explores potential uses of ICTs as adaptation tools and the associated challenges, with particular focus on agricultural adaptation and disaster risk reduction from community perspective. The research has been carried out among the climate vulnerable riverine island (char land) communities living in four villages of Sirajganj District in Bangladesh. The study reveals how people are getting the benefits of ICTs in adapting to climate change impacts. The study suggests that there are huge untapped potentials of using ICTs in climate change adaptation and proposes an improved governance framework.
Nuzhat Imam, Md Khalid Hossain, Toma Rani Saha

Africa and the Middle East

Frontmatter
Chapter 8. Evaluation of E-Infrastructure Deployment in OECD and MENA Countries
Abstract
This paper introduces new indices quantifying country’s level of e-infrastructure deployment. These indices comprise six components, which include several indicators, and are based on parametric or nonparametric methods. They improve existing indices. Based on index calculations, variations between countries, regions, and over time are analyzed. The data used covers MENA and OECD countries, 2000–2007. Analysis results identified areas, in which countries need improvements, and showed that some MENA countries outperformed some OECD countries. The rankings based on the indices differ only slightly. Additionally, the parametric method-based index produces equally distributed value ranges and shows an overall e-infrastructure improvement over time.
Jörn Altmann, Almas Heshmati, Baseem Al-Athwari
Chapter 9. Model for Constructing Institutional Framework for Scientific Knowledge Management Systems: Nigerian Institutional Repository Innovation Case Applicable to Developing Countries
Abstract
This chapter is a part of an inductive reasoning-based longitudinal study that aims to elicit novel barriers of institutional repository (IR) innovation in developing country contexts. The study reported in this chapter is based on qualitative data collected through observation and secondary data from three Nigerian universities. The findings reveal that reconstructing the institutional framework that supports scientific knowledge management systems (SKMS) in developing countries is a panacea for successful IR innovation. The study provides insights that differ from existing ones where scholars assume that IR barriers are only university based.
Samuel C. Avermaria Utulu, Ojelanki Ngwenyama
Chapter 10. Linkages Between Formal Institutions, ICT Adoption, and Inclusive Human Development in Sub-Saharan Africa
Abstract
This study empirically assesses the effects of formal institutions on ICT adoption in 49 African countries over the years 2000–2012. It deploys 2SLS and FE regression models (a) to estimate the determinants of ICT adoption and (b) to trace how ICT adoption affects inclusive development. The results show that formal institutions affect ICT adoption in this group of countries, with government effectiveness having the largest positive effects and regulations the largest negative effects. However, while formal institutions generally affect ICT adoption positively, population and economic growth tend to constrain ICT adoption more in low-income countries than middle-income countries. The results further demonstrate that the effects of ICT adoption on development are comparable to those of domestic credit and foreign direct investment. Ceteris paribus, one may conclude that external factors like foreign aid are more limiting to inclusive development than internal factors. This suggests that developing countries, African countries in this specific case, can enhance their ICT adoption for development by improving formal institutions and by strengthening domestic determinants of ICT adoption. Both represent opportunities for further research.
Antonio Rodrìguez Andrés, Voxi Amavilah, Simplice Asongu

Latin America

Frontmatter
Chapter 11. Inequalities in the Appropriation of Digital Spaces in Metropolitan Areas of Latin America
Abstract
This study discusses the role of information and communication technologies (ICTs), especially the Internet, in three Latin American capitals in people’s ability to attain the lifestyle they value and how inequalities in this ability or “information richness” can be explained by sociodemographic characteristics that do not depend on the individual’s decisions. The analysis is conducted using an Information Richness Index that includes information about the three barriers that people face in making significant use of the Internet: access to the Internet, skills for using ICTs, and the ability to function well in digital environments. Econometric estimations show that women, people who are not active in the workforce, and older adults, particularly senior citizens, have lower IRI levels, while each additional year of education and belonging to learning communities have a positive effect on the level a person achieves.
Roxana Barrantes, Eduardo Vargas
Chapter 12. Internet Use and Public Programs Participation: Evidence from Chile
Abstract
The interest for ICT-related issues has notably increased in the last decades, leading to a flourishing of studies on their impact on many dimensions. Despite the consensus about the importance of ICT effects at micro level, there is lack of analysis on the existence, magnitude and direction of these effects. This article aims to contribute to the literature by performing an analysis of the relationship between Internet use and information diffusion at household level in Chile. By using data from National Household Surveys, we estimate the effect of Internet use at household level on the probability of obtaining a scholarship for young students in the household. The results suggest that ICT use is significantly and positively correlated with the probability of primary students to be granted by a scholarship program, illustrating how ICT improves communication access and participation in social programs. Given that ICT diffusion is largely determined by socio-economic dimensions, the results also illustrate how ICT could reinforce pre-existing inequalities. This highlights the need for proactive public policies in addressing the digital divide.
Matteo Grazzi, Sebastian Vergara
Chapter 13. E-Commerce and Productivity: Evidence from Chile
Abstract
The diffusion of e-commerce is deeply changing the way in which business is conducted, by reducing the costs of goods and services to be used in the productive process as inputs and by increasing the access to new markets. However, the relative empirical literature is still limited, and the majority of studies focus on manufacturing firms in developed countries. This paper makes use of a country-representative survey including information for Chilean firms of every size and sector to analyze the impact on firm productivity of e-commerce adoption in the context of a middle-income economy. The results show that e-commerce is associated with higher levels of productivity in both the manufacturing and the service sector, whereas e-buying is the channel that explains this relationship.
Leonardo Ortega, Alison Cathles, Matteo Grazzi

Europe

Frontmatter
Chapter 14. Assessing the Economic Potential of Big Data Industries
Abstract
Information and communication technologies have made possible that data can be collected and processed at rates previously unseen. It is the big data phenomenon, which holds potential to boost innovation and improve productivity growth.
This chapter attempts to provide some evidence of the strengths and challenges faced by big data industries. Attention is focused on the position that these industries hold within the economic network in terms of their access to information and knowledge. To achieve this aim, network analysis is used over input-output table information. Given the absence of appropriate statistical data for developing countries, attention is paid to two developed countries, Slovenia and Slovakia, which show some common features in their patterns of digital development with some developing countries. Results show that while the levels of efficiency of these industries are high, they are missing some key economic links with other sectors of the economy.
Ana Salomé García-Muñiz, María Rosalía Vicente
Chapter 15. Is ICT the Solution of the Problem for Estonia?
Abstract
The Singing Revolution led to regaining independence after 50 years of Soviet occupation and created a new socioeconomic situation in Estonia in 1991. One of the first steps, of the Estonian government, was a telecommunication concession to the private company Eesti Telekom, in 1992. In 1995–1998, the Estonian government launched the national ICT strategy followed by the e-governance program. Fast economic and welfare growth in 1995–2007 ended with the global crisis, reminding many that linear growth of the economy is not sustainable anymore. Some new trends appeared in the last 8 years: Estonia has become the home of many new ICT startups which soon became global. There are opinions that it is not important for the Estonian economy, and ordinary Estonians will never experience a better living standard from such ICT startups. The chapter, based on data available from the statistics and multiple case studies, tries to find the answer.
Tõnis Mets
Metadata
Title
Catalyzing Development through ICT Adoption
Editors
Harleen Kaur
Ewa Lechman
Adam Marszk
Copyright Year
2017
Electronic ISBN
978-3-319-56523-1
Print ISBN
978-3-319-56522-4
DOI
https://doi.org/10.1007/978-3-319-56523-1

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