Telecommunications submarine cable vulnerability and local performance of firms in developing and transition countries
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27 juillet 2017
- handle: 10670/1.g3oysi
- hal: hal-01569846
http://creativecommons.org/licenses/by-nc/ , info:eu-repo/semantics/OpenAccess
Mots-clés
NICT ICT Internet submarine cables infrastructures telecommunications firm performance F - International Economics/F.F0 - General/F.F0.F02 - International Economic Order and Integration O - Economic Development, Innovation, Technological Change, and Growth/O.O1 - Economic Development/O.O1.O11 - Macroeconomic Analyses of Economic Development O - Economic Development, Innovation, Technological Change, and Growth/O.O3 - Innovation • Research and Development • Technological Change • Intellectual Property Rights/O.O3.O33 - Technological Change: Choices and Consequences • Diffusion Processes O - Economic Development, Innovation, Technological Change, and Growth/O.O1 - Economic Development/O.O1.O18 - Urban, Rural, Regional, and Transportation Analysis • Housing • Infrastructure L - Industrial Organization/L.L2 - Firm Objectives, Organization, and Behavior/L.L2.L25 - Firm Performance: Size, Diversification, and Scope L - Industrial Organization/L.L9 - Industry Studies: Transportation and Utilities/L.L9.L96 - TelecommunicationsSujets proches
DARPA Internet Internet (Computer network) Technological change Breakthroughs, Technological Innovations, Industrial Technological breakthroughs Technical innovations Innovations, TechnologicalCiter ce document
Joel Cariolle et al., « Telecommunications submarine cable vulnerability and local performance of firms in developing and transition countries », HAL-SHS : économie et finance, ID : 10670/1.g3oysi
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Résumé
We estimate the impact of Internet diffusion on local firm performance in developing and transition economies, by adopting an instrumental variable approach reflecting firm’s vulnerability to seismic shocks upon the telecommunications submarine cable (SMC) network. IV within fixed-effect estimations are conducted at the location-level, based on an original sample of some 30,000 firms from 125 locations in around 40 developing and transition countries. Results point to large and positive local impacts of a greater Internet diffusion among firms, induced by lower digital vulnerability, on their average revenue, labour productivity, and employment. These impacts are found to be larger for domestic SMEs, and partly driven by service firms. Moreover, a greater use of Internet is found to increase the number of production workers more than non-production workers in manufactures. This difference seems mostly explained by the large positive effect of internet use on the unskilled production workforce.