Estimating broadband diffusion in the EU using NUTS 1 regional data

In this paper we use panel data on NUTS 1 regional data for 27 EU countries in the years 2006–2010 to analyze determinants of broadband diffusion. We estimate both linear demand specification and the logistic diffusion function. We find that, after controlling for regional differences due to socioeconomic factors, inter-platform competition approximated by an inter-platform Herfindahl index has a significant positive impact on broadband diffusion. Broadband deployment is lower in countries in which DSL has a greater share in Internet access and it is higher in countries in which cable modem has a greater share in Internet access. Moreover, we find that competition between DSL providers has a significant and positive impact on broadband penetration. First, higher prices for a fully unbundled local loop connection, which represent the cost of providing copper-based Internet services, have a significant and negative impact on broadband penetration. Second, a greater incumbent share in DSL connections has a significant and negative impact on broadband penetration.     

Broadband and rural areas in the EU: From technology to applications and use

The paper examines current trends and policy issues related to broadband access and use in the rural areas of European Union (EU) member states. It draws selectively on the findings of a recently completed, multi-country project focused on current and future trends in broadband provision, applications and use in the enlarged European Union.The paper reviews key aspects and examples of the research literature and policy initiatives related to socio-economic and policy aspects of broadband, especially those focused on spatial inequalities of network rollout, access and use. It presents the main trends and issues related to broadband access and use in rural areas in EU countries and considers some related implications and conclusions.     

Can competition-enhancing regulation bridge the quality divide in Internet provision?

About 3.5 billion individuals, half of the world's population, were estimated to be using the Internet in 2017. However, their ability to use services such as cloud computing, VoIP, media streaming, high-frequency trading, network gaming, video conferencing and telemedicine, are sensitive to the network quality of service (QoS). We examine the effects of pro-competition regulation on Internet QoS - a measure of digital divide - using 23 indicators of competition from a panel of 160 countries covering 2008–2016. We find that pro-competition regulations had a stronger positive effect on QoS in developed countries compared to developing ones. A one-point increase in the pro-competition score increases QoS, measured as average connection speed, by at least 200 kbps in developed countries. Our results control for supply and demand factors, as well as country-fixed effects. The results are also robust to different measures of average connection speed. We attribute this variation to difficulties in the contracting environment in developed and developing countries, consistent with Levy and Spiller (1996). Countries with better institutional endowments – associated with developed economies - are better able to design and enforce complex regulatory contracts compared to developing countries. Ironically, this means that more pro-competition rules on paper will not necessarily narrow the digital divide between developed and developing countries and that there is a need to consider minimum quality standards as a means to effect improved Internet QoS.     

The non-linear relationship between ICT diffusion and financial development

This research investigates the linear and non-linear effects of information and communication technology (ICT) diffusion on financial development for 81 countries over the period 1990–2015 by employing the generalized-momentum method (GMM) and panel smooth transition regression (PSTR). Some main conclusions are presented as follows. First, comparing the different effects of ICT on financial development between the high-income group and the middle- & low-income group, telephone and Internet positively influences both groups’ financial development, whereas mobile cellular causes a negative effect in high-income countries, but a positive effect in middle- & low-income countries. Second, the growth of the Internet and telephones raises the financial development in all regions, while mobile cellular growth positively affects financial development only in Africa. Finally, strong evidence appears that the PSTR models capture the smooth non-linear effects of ICT diffusion on financial development, in which the effect of ICT diffusion on financial development is positive in the lower level of ICT diffusion, but turns negative in the higher level of ICT diffusion.     

Evolution of the internet gender gaps in Spain and effects of the Covid-19 pandemic

There is a widely accepted belief in new technologies that the digital divide in using a service will disappear as the service reaches an advanced level of maturity. The work presented here shows that this idea is debatable. Data from Spain, a country where daily internet users are 75.9 percent of the population, prove that the gender gap still exists. The paper explores if this gap can be entirely explained by the socioeconomic differences between men and women. We build a micro panel model and incorporate a set of socioeconomic variables (age, education, income, employment status, digital skills, and resident population) that allow us to isolate the effects of gender on the decision to become a daily Internet user. The results conclude that the Internet gap is a phenomenon with a specific gender component. Other things being equal a woman negatively affects the probability of using the Internet. Applying a similar model to 15 Internet services, we obtain that gender is always significant to explain the likelihood of being a user of each service. However, in some services (7 out of 15), the effect is favorable to women, and for other services (8), the gender effect favors men. The work concludes by analyzing the impact of the first wave of the Covid-19 pandemic on the use of Internet services, paying particular attention to its possible implications for the gender gap.     

Making personalised nutrition the easy choice: Creating policies to break down the barriers and reap the benefits

Personalised diets based on people’s existing food choices, and/or phenotypic, and/or genetic information hold potential to improve public dietary-related health. The aim of this analysis, therefore, has been to examine the degree to which factors which determine uptake of personalised nutrition vary between EU countries to better target policies to encourage uptake, and optimise the health benefits of personalised nutrition technology. A questionnaire developed from previous qualitative research was used to survey nationally representative samples from 9 EU countries (N = 9381). Perceived barriers to the uptake of personalised nutrition comprised three factors (data protection; the eating context; and, societal acceptance). Trust in sources of information comprised four factors (commerce and media; practitioners; government; family and, friends). Benefits comprised a single factor. Analysis of Variance (ANOVA) was employed to compare differences in responses between the United Kingdom; Ireland; Portugal; Poland; Norway; the Netherlands; Germany; and, Spain. The results indicated that respondents in Greece, Poland, Ireland, Portugal and Spain, rated the benefits of personalised nutrition highest, suggesting a particular readiness in these countries to adopt personalised nutrition interventions. Greek participants were more likely to perceive the social context of eating as a barrier to adoption of personalised nutrition, implying a need for support in negotiating social situations while on a prescribed diet. Those in Spain, Germany, Portugal and Poland scored highest on perceived barriers related to data protection. Government was more trusted than commerce to deliver and provide information on personalised nutrition overall. This was particularly the case in Ireland, Portugal and Greece, indicating an imperative to build trust, particularly in the ability of commercial service providers to deliver personalised dietary regimes effectively in these countries. These findings, obtained from a nationally representative sample of EU citizens, imply that a parallel, integrated, public-private delivery system would capture the needs of most potential consumers.     

Welfare effects of vegetable commercialization: Evidence from smallholder producers in Kenya

We investigate whether smallholder horticultural commercialization is able to, as often stipulated, reduce poverty in developing countries with the help of panel household survey data from Kenya. We find evidence for a positive association between vegetable commercialization and household welfare, even when controlling for unobserved heterogeneity across households. Interestingly, the effect differs depending on which market vegetables are being produced for: commercialization through the export market is consistently positively associated with income but not wealth, while there is some limited evidence for commercialization through the domestic market channel being positively related to welfare measured by asset holdings and income, depending on the specification.     

Inventory investment and production in Europe during the “Great Recession”: Is there a pattern?

The paper examines the nexus between inventory investment and the change in aggregate production during the “Great Recession” of 2008/09 for 29 European countries. A fairly uniform pattern emerges. Inventory investment is positively correlated with changes in production and follows the latter with a time-lag of two to three quarters. Very few countries (Austria, Greece, Spain and Switzerland) diverge from the typical pattern. This might hint to problems with respect to data quality.     

On the asynchronous approvals of GM crops: Potential market impacts of a trade disruption of EU soy imports

Due to their high protein content, soybeans are important feedstuffs in the European Union (EU). However, the cultivation of soybeans using genetically modified (GM) varieties in non-EU countries is increasing and the EU authorization of GM products takes longer than in other countries, leading to an asynchronous approval between the EU and non-EU countries that might induce soybean trade disruptions. This paper uses an integrated modelling system to simulate Argentina, Brazil and the United States ending soybean exports to the EU. The impact on world trade and on the EU import prices of soy products is analysed with a computable general equilibrium model. EU soy imports are shown to decline, and the import price of soybeans in the EU increases. The effects on EU agricultural markets are analysed based on a partial equilibrium model. Feed costs in the EU are found to increase with poultry and pork the most affected: production and exports decline and imports increase. However, the effects of a trade ban are found to be less profound than in many other studies due to compensating substitution effects at various market levels: increasing imports from third countries, increasing domestic oilseed production and the use of other protein feeds.     

What lies behind socio-economic inequalities in obesity in Spain? A decomposition approach

The expansion of obesity stands as a major food related health concern arguably driven by a socio-economic vector. However, alongside its prevalence, still scant evidence has examined on the underlying factors that explain the emergence socio-economic inequalities in obesity. This paper makes use of evidence form Spain to empirically address the hypothesis of the existence of income-related inequalities in the probability of suffering obesity in Spain using data from 2003. Besides quantifying inequalities, we take advantage of a concentration index methodology that allows a decomposition of the cross-section explanatory factors. Our findings provide suggestive evidence of significant socio-economic inequalities in the probability of being obese in Spain. However, in decomposing such inequalities we find that education attainment and other demographic covariates appear to have a prominent influence. Hence, rather than the so-called pure “income effect”, we conclude that socio-economic inequalities in obesity result from the additional influence of other confounding – observed and unobserved-effects.     

The disappearing budget constraint on EU agricultural policy

Concern over budgetary costs has been the traditional driving force behind changes to the EU's Common Agricultural Policy. While the recent MacSharry reform of this policy was more related to external pressures arising from the need to reach an agreement on agriculture in the GATT Uruguay Round, many expect the budgetary constraint to re-emerge towards the end of this decade, particularly in the light of the impending accession of a number of Central and Eastern European countries (CEECs). This paper argues that it is unlikely that there will be any budgetary need to further reform Europe's agricultural policy to accommodate the CEECs. Applying the agricultural guideline to estimate resources and using a simple forecasting model of FEOGA Guarantee budget expenditure, the paper demonstrates that, under a range of plausible assumptions for the key variables affecting resources and expenditure, a significant positive margin should emerge between available resources and the cost of EU agricultural policy by the beginning of the next decade. This margin should be sufficient to pay the estimated costs of extending the present CAP to the CEEC countries without further significant reform. However, even though the budget cinstraint on EU farm policy may disappear, other factors, such as GATT disciplines and concern about agriculture's impact on the environment, will remain as pressures for further CAP reform.     

Regulatory factors influencing Internet access in Australia and China: a comparative analysis

Internet access is determined by a combination of a widely available telecommunication infrastructure and affordability of Internet services, which are closely related to government policies (IT Group. (1999). Like other countries, both Australia and China have considered the Internet a powerful tool for national development economically and socially. As Internet growth becomes more and more significant, it becomes important to address the extent to which the underlying communication policies influence current growth rates.This paper provides a comparative review of policy approaches to regulating the Internet in both China and Australia. This study aims to identify the regulatory factors affecting Internet access in terms of availability and affordability, especially those factors which encourage the creation of a policy and regulatory environment favourable to the development of Internet infrastructure and access.This paper examines the linkages between regulatory regimes, market environments and Internet access in both China and Australia. The preliminary result suggests that government policies governing the telecommunications service market and promoting information infrastructure have a significant impact on the affordability and availability of Internet access. The most significant factor is the level of competition permitted in the telecommunication sector. It has become clear that further regulatory initiatives such as deregulatory mechanisms and interconnection regimes are needed to establish a more competitive environment for Internet access in both countries, and more particularly in China.     

The growing complexity of content delivery networks: Challenges and implications for the Internet ecosystem

Since the commercialization of the Internet, content and related applications, including video streaming, news, advertisements, and social interaction have moved online. It is broadly recognized that the rise of all of these different types of content (static and dynamic, and increasingly multimedia) has been one of the main forces behind the phenomenal growth of the Internet, and its emergence as essential infrastructure for how individuals across the globe gain access to the content sources they want. To accelerate the delivery of diverse content in the Internet and to provide commercial-grade performance for video delivery and the Web, Content Delivery Networks (CDNs) were introduced. This paper describes the current CDN ecosystem and the forces that have driven its evolution. We outline the different CDN architectures and consider their relative strengths and weaknesses. Our analysis highlights the role of location, the growing complexity of the CDN ecosystem, and their relationship to and implications for interconnection markets.     

Technologically Reflective Individuals as Enablers of Social Innovation*

This paper identifies technologically reflective individuals and demonstrates their ability to develop innovations that benefit society. Technological reflectiveness (TR) is the tendency to think about the societal impact of an innovation, and those who display this capability in public are individuals who participate in online idea competitions focused on technical solutions for social problems (such as General Electric's eco‐challenge, the James Dyson Award, and the BOSCH Technology Horizon Award). However, technologically reflective individuals also reflect in private settings (e.g., when reading news updates), thus requiring a scale to identify them. This paper describes the systematic development of an easy‐to‐administer multi‐item scale to measure an individual's level of TR. Applying the TR scale in an empirical study on a health monitoring system confirmed that individuals' degree of TR relates positively to their ability to generate (1) more new product features and uses, (2) features with higher levels of societal impact, and (3) features that are more elaborated. This scale allows firms seeking to implement co‐creation in their new product development (NPD) process and sustainable solutions to identify such individuals. Thus, this paper indicates that companies wishing to introduce new technological products with a positive societal impact may profit from involving technologically reflective individuals in the NPD process.     

Developing the Internet: entrepreneurship and public policy in Ireland,Singapore, Argentina,and Spain

The Internet has not developed uniformly throughout the world. Data on 141 countries indicate that, after controlling for per capita income and installed telephone lines, cross-national differences in the numbers of Internet users and hosts have to do with favorable conditions for entrepreneurship and investment. We find little evidence that competition and privatization of telecommunications services matters. After examining international patterns of development for the world as a whole, differences between two matched pairs of countries are systematically compared: Ireland and Singapore, and Argentina and Spain. Patterns of entrepreneurship and public policy in each country are shown to have differed systematically, with distinctive consequences for the development of the Internet.     

The Impact of Acquiring EU Status on the Earnings of East European Migrants in the UK: Evidence from a Quasi‐Natural Experiment

On 1 May 2004, 10 new states — including the ‘A8’ countries in Central and Eastern Europe — joined the European Union (EU). This article explores the impact of EU enlargement on A8 workers who were already working in the UK before 1 May 2004 — legally or illegally. More specifically, the article analyses the impact of the change in the legal (immigration) status that A8 workers experienced on 1 May 2004 on their earnings in the UK. The empirical analysis employs difference‐in‐difference estimation using data obtained from a relatively small but unique survey of migrant workers from four of the A8 countries (Poland, Czech Republic, Slovakia and Lithuania) and two other East European countries (Ukraine and Bulgaria), carried out one month before and six to eight months after EU enlargement in May 2004. The results of this exploratory analysis suggest a statistically significant and positive impact of acquiring EU status on earnings. The data further indicate that, in part, this effect was brought about by A8 workers gaining the right to freely change jobs after EU enlargement. There is no evidence of a ‘legalization effect’ on earnings.     

E-commerce in Spain: Determining factors and the importance of the e-trust

This paper identifies and estimates the determinants for participating in e-commerce and developing e-trust, as well as the importance of e-trust for e-commerce in Spain. For its analysis, a national survey from 2014 to 2019 is used and the logit model is implemented. It is concluded that the e-trust is a determining factor in e-commerce, and the improvement of equality education helps the growth of online commerce and e-trust. In turn, e-trust encourages the use of all digital resources.     

Networking for sustainability: Alliance capabilities and sustainability-oriented innovation

Research on open innovation and sustainability suggests that alliances with external stakeholders help to improve innovation outcomes. This paper taps into the intersection of these literatures and investigates how alliance proactiveness and alliance portfolio coordination affect firms' sustainability-oriented innovation (SOI) outcomes. Data were collected from 170 firms in the Basque Country region in Spain, which has a highly collaborative regional innovation system. Partial least squares (PLS) modeling confirmed that alliance proactiveness is positively related to radical SOI, while alliance portfolio coordination is positively related to incremental SOI. In addition, these two capabilities involve a positive interaction effect in the case of radical SOI. An additional set of post hoc tests using latent class analysis (FIMIX-PLS) provided further evidence that firms with different internal features and levels of environmental turbulence benefit to varying extents from these capabilities and their interactions. Overall, the findings of this study show the benefits of the coupled mode of open innovation and alliance capabilities in reaching positive outcomes in SOI. On the one hand, companies focusing on incremental SOI can reap greater benefits from open innovation when collaborating within their existing portfolio; while for radical SOI, alliance proactiveness is beneficial for finding disruptive partners.     

The impact of the European Novel Food Regulation on trade and food innovation based on traditional plant foods from developing countries

The stringent food safety assessment for novel foods required by the European Union’s Novel Food Regulation (NFR) places a high burden of proof on those bringing traditional food products to the EU market not consumed in the EU prior 1997. The regulation has emerged as a non-tariff trade barrier for heritage foods from developing countries that are viewed as “exotic” from the EU perspective. We show how the regulation has discouraged investment in supply chains and market development, and how this negatively affects income generation and rural poverty alleviation in developing countries. Focusing on plant-derived foods, this paper proposes to recognize traditional exotic foods in current EU law as a food category sui generis with food safety evidence requirements being proportionate to the risks they may pose. We argue that development activities promoting export food chains must increasingly accommodate legitimate food safety concerns about neglected food species in project design and seek to generate data to enhance regulatory acceptance in target markets.