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World Institute for Development Economic Research Conference on the new economy in development

WIDER Conference on
the New Economy in Development
- Helsinki, Finland 10-11 May 2002

Publications from the NED Conference:

RP2004/13 Petri Rouvinen:
Diffusion of Digital Mobile Telephony: Are Developing Countries Different? (PDF 219KB)

Factors determining the diffusion of digital mobile telephony across 200 developed and developing countries in the 1990s are studied with the aid of a Gompertz model. The market size and network effects are found to play more important roles in the developing countries; there is also more need for complementing innovations in, for example, financial and payment systems. Even though the developing countries have disadvantages, being late entrants in digital mobile telephony is to their advantage and promotes cross-country convergence. Overall digital technologies are best seen as equalizers, and thus the divide is rather socio-economic or analog than digital.

DP2003/45 Tony Addison and Almas Heshmati:
The New Global Determinants of FDI Flows to Developing Countries: The Importance of ICT and Democratization (PDF 274KB)
Foreign direct investment (FDI) has increased dramatically in recent years. However, the distribution of FDI is highly unequal and very poor countries face major difficulties in attracting foreign investors. This paper investigates the determinants of FDI inflows to developing countries, with a particular emphasis on the impact of the ‘third wave of democratization’ that started in the early 1980s and the spread of information and communication technology (ICT) that began in the late 1980s. These two global developments must now be taken into account in any explanation of what determines FDI flows. Using a large sample of countries, together with panel data techniques, the paper explores the determinants of FDI. The causal relationship between FDI, GDP growth, trade openness and ICT is investigated. The main findings are that democratization and ICT increase FDI inflows to developing countries. The paper concludes that more assistance should be given to poorer countries to help them to adopt ICT and to break out of their present ‘low ICT equilibrium’ trap.

DP2003/40 Stéphane Gagnon:
E-business Model Innovation and Capability Building (PDF 307KB)
April 2003
A firm’s business model describes the way in which it creates, delivers, and appropriates value. In the debate about the ongoing demise of several e-commerce ventures, only a few analysts have looked at the relative sanity of innovative e-business Models, relying mostly on static environmental variables and the inherent economic logic of each industry. Our study sheds new light on this debate by concentrating on a set of more complex factors, namely the relative difficulty to build new capabilities, whether by creating or acquiring them. We interviewed 60 e-commerce ventures between 2 and 3 years old, both independent and corporate ones, in order to measure their performance, the innovativeness of their e-business model, their obstacles to capability building, and their exploitable resource base. By performing cluster, discriminant, and regression analyses, we demonstrate that a number of typical obstacles to capability building can significantly affect the relative success or failure of innovative e-business models, but that a richer resource base may alleviate this relationship. We end with a discussion of the implications for the e-business model literature, and point out to some new directions to explain how various e-commerce firms, whether ‘pure-play’ or ‘click-and-mortar’, can successfully innovate despite rampant capability building difficulties.

DP2003/22 Birgitte Andersen and Marva Corley:
The Theoretical, Conceptual and Empirical Impact of the Service Economy: A Critical Review (PDF 212KB)
This paper offers a critical review of the conventional economic classification, measurement and valuation of output, and related performance indicators, for the service sector. The paper also explores and contrasts long-standing views on the service knowledge base and service innovations, as well as the global aspects of many services. A problem arises when historical industrial classification schemes treat services as being ‘immaterial’ (i.e. everything that is not manufacturing and agriculture), while ignoring that the activities of services in the economy, as well as the corporate structures of firms, transcend such classification schemes at any level of aggregation. Other problems arise when associated traditional analytical methods measure services input and output and related performance indicators using the same conceptual framework and indicators as those that are applied for problem solving for agriculture and manufacturing. Such entanglements have other and wider consequences for understanding the impact of the new economy and for designing appropriate policy.

DP2003/07 Dietrich Domanski:*
Idiosyncratic Risk in the 1990s: Is It an IT Story? (PDF 255KB)

DP2003/06 Shyamal K. Chowdhury and Susanne Wolf:*
Use of ICTs and the Economic Performance of SMEs in East Africa (PDF 218KB)

DP2002/116 Derrick L. Cogburn:*
Emergent Global Information Infrastructure/Global Information Society (PDF 198KB)

DP2002/115 Sougata Poddar:*
Network Externality and Software Piracy (PDF 182KB)

DP2002/111 Jai-Joon Hur, Hwan-Joo Seo and Young Soo Lee:*
ICT Diffusion and Skill Upgrading in Korean Industries (PDF 192KB)

DP2002/108 Kandamuthan Subodh:
Market Concentration, Firm Size and Innovative Activity: A Firm-level Economic Analysis of Selected Indian Industries under Economic Liberalization
- (PDF 242KB)

DP2002/95 Patrice Muller:
Internet Use in Transition Economies: Economic and Institutional Determinants (PDF 212KB)

DP2002/94 Stijn Claessens, Daniela Kingebiel, and Sergio L. Schmukler:
Explaining the Migration of Stocks from Exchanges in Emerging Economies to International Centres (PDF 158KB)

DP2002/92 Daniel Chudnovsky and Andrés López:
The Software and Information Services Sector in Argentina: Pros and Cons of an Inward-Orientated Development Strategy (PDF 219KB)

DP2002/90 Danny Cassimon and Peter-Jan Engelen:
Legal and Institutional Barriers to Optimal Financial Architecture for New Economy Firms in Developing Countries (PDF 131KB)

DP2002/89 Christopher Forman:
The Corporate Digital Divide: Determinants of Internet Adoption (PDF 144KB)

DP2002/88 Youngsoo Lee, Jeonghun Oh, and Hwanjoo Seo:
Digital Divideand Growth Gap: A Cumulative Relationship (PDF 194KB)

DP2002/84 Albertus Aochamub, Daniel Motinga, and Christoph Stork:
Economic Development Potential through IP Telephony for Namibia (PDF 733KB)

DP2002/83 Samia Satti O. M. Nour:
ICT Opportunities and Challenges for Development in the Arab World (PDF 167KB)

DP2002/79 Sagren Moodley:
Competing in the Digital Economy?: The Dynamics and Impacts of B2B E-commerce on the South African Manufacturing Sector (PDF 321KB)

DP2002/78 K. J. Joseph:
Growth of ICT and ICT for Development: Realities of the Myths of the Indian Experience (PDF 409KB)

DP2002/77 Mina N. Baliamoune:
The New Economy and Developing Countries: Assessing the Role of ICT Diffusion (PDF 292KB)

DP2002/76 T. A. Bhavani:
Impact of Technology on the Competitiveness of the Indian Small Manufacturing Sector: A Case Study of the Automotive Component Industry (PDF 398KB)

DP2002/75 Charles Kenny:
The Internet and Economic Growth in Least Developed Countries (PDF 250KB)

DP2002/74 George R. G. Clarke:
Does Internet Connectivity Affect Export Performance? Evidence from Transition Economies (PDF 85KB)

DP2002/73 Sandeep Kapur:
Developing Countries in the New Economy: The Role of Demand-side Initiatives (PDF 178KB)

DP2002/72 Steve Onyeiwu:
Inter-Country Variations in Digital Technology in Africa: Evidence, Determinants, and Policy Applications (PDF 296KB)

DP2002/70 Francesco Daveri:*
The New Economy in Europe, 1992-2001 (PDF 107KB)

DP2002/69 Poh-Kam Wong and Zi-Lin He:*
The Impacts of Knowledge Interaction with Manufacturing Clients on KIBS Firms Innovation Behaviour (PDF 240KB)

DP2002/68 K. Lal:*
E-business and Export Behaviour: Evidence from Indian Firms (PDF 83KB)

DP2002/67 Matti Pohjola:*
New Economy in Growth and Development (PDF

DP2002/62 Marcin Piatkowski:*
The 'New Economy' and Economic Growth in Transition Economies (PDF 302KB)

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