This study analyzed how information and communication technology (ICT) influences international trade volume, and it undertook a comparative analysis of BRICS countries using panel data from the 2000 to 2016 period. The findings showed that (1) the effect of ICT was more positive on exports than imports, (2) the higher the ICT levels in the value chain were, the less effective they simultaneously were on both exports and imports, (3) the effect of ICT levels on trade increased over time, and (4) ICT improvement levels have more positive effects on trade in labor-intensive countries than on resources-intensives BRICS countries. To improve their export volume, BRICS countries would benefit from increasing their use of fixed-broadband and the internet.
This study aims to examine the impact of Internet development on the urban-rural income gap in China. By using a provincial level panel dataset comprising 31 of China’s provinces, it analyzes and compares the effects of the eastern, central, and western regions over the period of 2005–2016. The results show that Internet development aggravates the gap in the central region much more than that in the eastern and western regions. The trade openness expands the urban-rural income gap only in the eastern region. Urbanization reduces the urban-rural income gap in the western region more than that in the eastern and central regions. Additionally, the regional economic development level also reduces the urban-rural income gap in central region more than that in the eastern region. FDI reduces the urban-rural income gap only in the central region. Additionally, while the urban-rural income gap can widen further by Internet development with trade openness, it can be decreased if Internet development is combined with FDI and urbanization. To reduce urban-rural income gap, the government should accelerate the construction of Internet according to regional differences.
6 December 2021 in Economic Research-Ekonomska Istraživanja
This study applies the method of the fully modified ordinary least squares (FMOLS) method and the vector error correction model (VECM) to explore whether institutional quality (IQ) and foreign direct investment (FDI) promoted economic growth (EG) and environmental quality (EQ) in oil-producing and non-oil-producing African countries from 1999 to 2017. The FMOLS findings demonstrate that IQ significantly promoted EG and improved EQ in the non-oil-producing countries, however it only improved EQ and showed no significant impact on EG in oil-producing countries. FDI significantly promoted EG to a higher extent in oil-producing countries than in non-oil-producing countries, but it presented no significant impact on EQ in both groups. The VECM results reveal that (i) two-way causation among IQ and EG, IQ and EQ, FDI and EG, and FDI and EQ was occurred in both groups, in the long-run. (ii) two-way causation among FDI and EQ and one-way causation from FDI to EG was observed in non-oil-producing countries in the short-run. Moreover, two-way causation among IQ and EG, and one-way causation from IQ to EQ were observed in non-oil-producing countries. To realize the sustainable development of economy and environment, a series of policy suggestions have been discussed.