Information and communication technologies and employment in developing countries: Effects and transmission channels

Fokam, Dieu Ne Dort Talla; Kamga, Benjamin Fomba; Nchofoung, Tii N.

doi:10.1016/j.telpol.2023.102597

Cited by 5 publications

(1 citation statement)

References 63 publications

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“…In addition, Nour (2002) highlights that developed countries can achieve increased comparative advantages through ICT, thereby bolstering their global competitiveness, often to the detriment of developing nations. In contrast, Talla Fokam et al (2023) discovered that ICT adoption in developing countries fosters employment growth. While job displacement does occur, the overall increase in jobs generated outweighs those lost in these contexts.…”

Section: Literature Reviewmentioning

confidence: 99%

Assessing the economic impact of mobile telecommunications in Egypt: a structural model approach

Emara,

Katz

2024

DPRG

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Purpose The purpose of this study is to use the structural model to determine the influence of mobile telecommunication on Egypt’s economic growth from 2000 to 2009. By focusing on mobile unique subscribers and mobile broadband-capable device penetration as indicators of telecommunications adoption, the authors seek to understand their overarching effects on the nation’s economic landscape. Design/methodology/approach The paper uses quarterly time-series data set over the period 2000–2019 and uses a structural econometric model based on an aggregate production function, a demand function, a supply function and an infrastructure function to detect causality and examine long-run relationships between variables. Findings The findings of the structural model reveal that both mobile unique subscribers and mobile broadband-capable device penetration significantly contributed to Egypt’s gross domestic product (GDP) growth from 2000 to 2019. Specifically, a 1% increase in mobile unique subscriber penetration and mobile broadband-capable device adoption is estimated to result in an average annual contribution to GDP growth of 0.172% and 0.016%, respectively. Research limitations/implications The scarcity of panel data is the main research limitation for comparative study with other Middle East and North African Region (MENA) countries. Research extensions would include testing the significance of complementarities such as improving governance measures and building human capacity for both households and firms, which are necessary to boost the impact of telecommunication on economic growth in the MENA region. Practical implications Based on these findings, the study puts forth policy recommendations aimed at maximizing investment in network utilization, including mobile and internet services, as well as fixed broadband subscriptions. It highlights the crucial role of these investments in promoting social and economic development, not only in Egypt but also across the MENA region as a whole. Social implications The findings of this research emphasize the importance of strategic investments in network utilization, encompassing mobile, internet services and fixed broadband subscriptions. Such investments are pivotal for fostering social and financial inclusion. The study underscores the potential of these investments to drive social and economic progress, not just within Egypt but throughout the entire MENA region. Originality/value Overall, existing literature generally supports the notion that the telecommunications sector has a positive economic impact. However, there is a gap in the literature when it comes to understanding the specific effects of the Egyptian telecommunications sector on the country’s economy, particularly in relation to the Egypt Vision 2030. The study aims to fill this gap by focusing specifically on Egypt and providing additional insights into the direct and indirect effects of the Egyptian telecommunications sector on the economy. By conducting a thorough analysis of the sector’s role, the authors aim to contribute to the existing literature by providing context-specific findings and recommendations.

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Section: Literature Reviewmentioning

confidence: 99%

Assessing the economic impact of mobile telecommunications in Egypt: a structural model approach

Emara,

Katz

2024

DPRG

View full text Add to dashboard Cite

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Taking Gerschenkron to the Field: Attitudes towards Digitalization Hopes and Fears about the Future of Work in Ghana

Awuni,

Kemmerling

2024

Telecommunications Policy

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The impact of artificial intelligence on employment: the role of virtual agglomeration

Shen,

Zhang

2024

Humanit Soc Sci Commun

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Sustainable Development Goal 8 proposes the promotion of full and productive employment for all. Intelligent production factors, such as robots, the Internet of Things, and extensive data analysis, are reshaping the dynamics of labour supply and demand. In China, which is a developing country with a large population and labour force, analysing the impact of artificial intelligence technology on the labour market is of particular importance. Based on panel data from 30 provinces in China from 2006 to 2020, a two-way fixed-effect model and the two-stage least squares method are used to analyse the impact of AI on employment and to assess its heterogeneity. The introduction and installation of artificial intelligence technology as represented by industrial robots in Chinese enterprises has increased the number of jobs. The results of some mechanism studies show that the increase of labour productivity, the deepening of capital and the refinement of the division of labour that has been introduced into industrial enterprises through the introduction of robotics have successfully mitigated the damaging impact of the adoption of robot technology on employment. Rather than the traditional perceptions of robotics crowding out labour jobs, the overall impact on the labour market has exerted a promotional effect. The positive effect of artificial intelligence on employment exhibits an inevitable heterogeneity, and it serves to relatively improves the job share of women and workers in labour-intensive industries. Mechanism research has shown that virtual agglomeration, which evolved from traditional industrial agglomeration in the era of the digital economy, is an important channel for increasing employment. The findings of this study contribute to the understanding of the impact of modern digital technologies on the well-being of people in developing countries. To give full play to the positive role of artificial intelligence technology in employment, we should improve the social security system, accelerate the process of developing high-end domestic robots and deepen the reform of the education and training system.

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Information and communication technologies and employment in developing countries: Effects and transmission channels

Cited by 5 publications

References 63 publications

Assessing the economic impact of mobile telecommunications in Egypt: a structural model approach

Assessing the economic impact of mobile telecommunications in Egypt: a structural model approach

Taking Gerschenkron to the Field: Attitudes towards Digitalization Hopes and Fears about the Future of Work in Ghana

The impact of artificial intelligence on employment: the role of virtual agglomeration

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