Internet, Economic Growth and Globalization

by Barfield, Claude E.; Heiduk, Gunter; Welfens, Paul J. J.; Welfens, Paul J. J.

• ISBN13: 9783540002864
• ISBN10: 3540002863
• Format: Hardcover
• Copyright: 2003-05-01
• Publisher: Springer Nature

Summary

The dynamics of the digital economy in the US, Europe and Japan are rather different. Some EU countries come close to the USA as the leading OECD country in the new economy, but Japan faces particular problems in catching-up digitally. Information and communication technology will affect productivity growth, production, the financial system and trade. Setting adequate rules for the digital economy - at the national and international level - is a key challenge for industrialized countries. Moreover, cultural and organizational challenges will also have to be met.

Table of Contents

Introduction	1	(8)
Claude E. Barfield
Gunter Heiduk
Paul J.J. Welfens
Telecommunications, Internet, Innovation and Growth in Europe	9	(58)
Paul J.J. Welfens
Andre Jungmittag
Telecommunications, Internet and Transatlantic Growth Differentials	9	(8)
Telecommunications and the Internet	9	(1)
Telecommunications and Technological Dynamics	10	(3)
Taking Stock: Transatlantic Growth Differential	13	(4)
Theoretical Analysis	17	(16)
ICT Dynamics and Growth	17	(12)
Perspectives on Inflation and Growth	29	(4)
Innovation, ICT Dynamics and Growth: Theoretical and Empirical Aspects	33	(8)
Basic Theoretical Issues	33	(3)
Empirical Links Between Innovations and Output	36	(4)
ICT as a General Purpose Technology?	40	(1)
The Role of Telecommunications and the Internet for Trade and Growth	41	(10)
Telecommunications, Innovation and Economic Growth in Germany 1960 - 1990	41	(3)
Growth and Employment Effects of an Internet Flat Rate in Germany	44	(4)
Telecommunications and Foreign Trade	48	(3)
Some Long-Term Aspects	51	(16)
Appendix: Methodological Issues in Growth Statistics	54	(13)
Is the IT Revolution Possible in Japan?	67	(18)
Yukio Noguchi
Introduction	67	(1)
The Present State of IT Utilization in Japan	68	(3)
The Government IT Policy	71	(2)
Social Factors Prevent the IT Revolution	73	(2)
The Traditional Companies Still Dominate the Economy	75	(2)
The Reform of the 1940 System	77	(8)
Annex: Tables	80	(5)
The Internet and Evolving Patterns of International Trade	85	(20)
Caroline L. Freund
Diana Weinhold
Introduction	85	(1)
Brief Review of a Theoretical Framework for Empirical Tests	86	(1)
Specification of the Gravity Equation of Trade	87	(1)
Data	88	(2)
Discussion of the Results	90	(9)
Sensitivity Analysis and Alternative Explanations	99	(2)
Conclusions	101	(4)
Internet Dynamics, Trade and Globalization (Some Comments on the paper by Caroline L. Freund and Diana Weinhold)	105	(4)
Thomas Gries
General Comments	105	(1)
Comments on ``Internet Increased Trade''	105	(1)
Comments on ``Internet Distance Trade''	106	(3)
Internet and Culture	109	(22)
Marieke de Mooij
The Convergence Thesis	109	(2)
Meta-Analysis of Consumption and Consumer Behaviour	111	(2)
Hofstede's Dimensions of National Culture	113	(1)
With Increased Wealth Cultural Values Become Manifest	114	(1)
Culture and Consumption	114	(1)
Convergence-Divergence: A Pattern	115	(5)
Communication Technology: Increasing Influence of Culture	120	(2)
The Communication Means of the New Economy	122	(2)
The Internet in Europe	124	(3)
Business Application	127	(1)
Conclusions	128	(3)
E-Commerce: A Paradise for Bargain Hunters?	131	(4)
Christiane Jacker
E-Finance: Causing Major Upheavals in the Spatial Organization of the Financial Sector?	135	(36)
Nicole Pohl
E-Finance: Technological Revolution, Paradigm Shift or Hype?	135	(2)
The Role of International Financial Centers	137	(2)
New Technological Developments and the Role of E-Finance	139	(7)
Online Banking	141	(1)
Investment Houses: Traditional, Online or Hybrid	141	(1)
Alternative Trading Systems and the Competition Between Floor Trading and Electronic Trading	142	(1)
Cooperation and Alliances of Stock Exchanges	143	(1)
Implications for International Financial Centers: Expectations and Perceptions	144	(2)
Financial Centers as Information and Interaction Centers	146	(11)
Delineating the Argument	146	(4)
Open Questions	150	(7)
Further Reasons for Agglomeration: Labor Markets and Institutions	157	(2)
Labor Markets	157	(2)
Institutions	159	(1)
Information Strategies and the Special Characteristics of Centers	159	(2)
Conclusion	161	(10)
Appendix: Tables	164	(7)
E-Finance: Causing Major Upheavals in the Spatial Organization of the Financial Sector? (Some Comments on Paper by Nicole Pohl)	171	(8)
Thomas P. Gehrig
Introduction	171	(1)
What Does Theory Tell Us?	172	(1)
What Do Empirical Observations Tell Us?	173	(2)
How Does the Internet Affect Spatial Financial Activities?	175	(4)
How Will the Internet Change the Japanese Financial Perspective?	179	(16)
Mariko Fujii
Introduction	179	(1)
Current State of the Development of Electronic Financial Services in Japan	179	(10)
Securities Businesses on the Internet	180	(2)
E-Banking	182	(4)
Challenges to the Development of Electronic Financial Transactions	186	(1)
Internet Access	186	(1)
System Security	186	(1)
Growth Potential for Online Brokers	187	(2)
Impacts of Electronic Financial Transactions on Market Structure	189	(3)
Direct Effects: Transaction Costs	189	(1)
Possibility of Changing Market Structure: Cooperation and Competition	190	(2)
Policy Implications and Concluding Remarks	192	(3)
Policy Challenges	192	(1)
Implications for the Banking Business	193	(2)
How Will the Internet Change the Japanese Financial Perspective? (Some Comments on Paper by Marico Fujii)	195	(4)
Christian Thygesen
Internet Dynamics and Expansion of European Financial Markets: Issues from a Behavioral Finance Perspective	199	(18)
Matthias Bank
Introduction	199	(1)
Recent Trends in the Internet and the Internet Economy	200	(2)
The Expansion of the European Financial Markets	202	(6)
European Financial Markets as a Source of Risk Capital for SMEs	202	(5)
Mergers, Acquisitions and Corporate Debt Markets	207	(1)
An Assessment of the Recent Developments	208	(5)
Shortcomings in the Valuation of Internet-Related Firms	209	(2)
The Behavioral Finance Approach (BFA)	211	(1)
A Behavioral Finance Interpretation for the Internet Bubble	212	(1)
Conclusions	213	(4)
Competition in Telecommunications and Internet Services: A Dynamic Perspective	217	(12)
Gunter Knieps
The Internet as the Prime Driver of Convergence of the Telecommunications, Media and Information Technology (IT) Sectors	217	(1)
Internet Periphery Versus Internet Service Provision	218	(2)
Access to the Internet	220	(3)
Internet Backbones	223	(6)
Long Distance Network Capacity (Communications Bandwidth)	224	(1)
Internet Backbone Services	224	(1)
Organization of Interconnectivity: Transit and Peering	224	(5)
Persistence of Monopolistic Bottlenecks in Telecommunications and Internet Services (Some Comments on a Paper by Gunter Knieps)	229	(6)
Torsten J. Gerpott
Summary of Key Conclusions of Knieps	229	(1)
Availability of Competing (Internet) Access Technologies	230	(1)
Competitive Intensity on the German (Internet) Backbone Bandwidth Market	231	(4)
Regulatory Economics and the Internet	235	(14)
Friedhelm Dommermuth
Christoph Mertens
Introduction	235	(1)
Market Trends and the Importance of the Internet	235	(3)
Importance of the Internet	235	(1)
Development of Internet Usage / Development of Broadband Internet	236	(1)
Internet Service Provider Trends	237	(1)
Convergence	238	(1)
RegTP Determinations	238	(5)
Wholesale Metered Access for ISPs	238	(1)
Wholesale Unmetered Internet Access	239	(1)
DSL	240	(1)
Line Sharing	240	(1)
Internet Telephony	241	(2)
Impact of the Internet on the PSTN/ISDN	243	(2)
Questions Arising from Regulatory Practice and Emerging Trends	245	(3)
Should RegTP Regulate the Internet?	245	(1)
Is Regulation of the Wholesale Service Enough?	246	(1)
Regulatory Implications	246	(2)
Conclusion	248	(1)
The Regulation, Deregulation, and Nonregulation of Telecommunications and the Internet in the United States	249	(26)
Donald K. Stockdale
Background and Overview	249	(2)
Antitrust versus Regulation: A Two-Pronged Approach to Regulating Firms	249	(1)
Reconsidering Industry-Specific Regulation	250	(1)
Regulation and Deregulation of Telecommunications	251	(14)
The Communications Act of 1934	251	(2)
The Introduction of Competition into the Long-Distance Market	253	(1)
Opening the Long-Distance Market to Competition	253	(1)
Regulatory Responses to the Introduction of Competition	254	(6)
The Introduction of Competition into Local Telephone Markets	260	(1)
The Local Competition Provisions	260	(3)
Deregulation	263	(2)
The Non-Regulation of Enhanced Services and the Internet	265	(4)
The Non-Regulation of Enhanced Services	265	(3)
The Non-Regulation of the Internet	268	(1)
Summary and Conclusions	269	(6)
Deregulation of Telecommunications and Non-Regulation of the Internet in Japan	275	(14)
Koichiro Agata
Introduction	275	(1)
Actors on the Internet Market	275	(2)
Deregulation of Telecommunications in Japan	277	(3)
Concrete Actors	277	(1)
Stages of the Telecommunications Deregulation	277	(2)
Further Discussions and Reforms	279	(1)
Non-regulation of Internet Content in Japan	280	(5)
Concrete Actors	280	(1)
Process of Discussions	281	(1)
Pending Issues	282	(3)
Perspectives	285	(4)
Electronic Commerce and the Gats Negotiations	289	(16)
Claude E. Barfield
Introduction	289	(1)
Classification	289	(3)
Taxation	292	(1)
Scope: Modes of Supply	293	(4)
E-Commerce: The Impact of Regulation	297	(3)
Intellectual Property Issues	300	(2)
Privacy & Security	302	(3)
Electronic Commerce and the GATS Negotiations (Some Comments on a Paper by Claude E. Barfield)	305	(6)
Harald Sander
Introduction	305	(1)
Issues in E-Commerce and Trade	306	(2)
Towards an Informed Debate on E-Commerce	308	(3)
The Internet and Society	311	(12)
William H. Dutton
Technological Determinism and Conflicting Visions of the Internet	311	(1)
Limitations of the ``Social Impacts of ICTs'' Approach	312	(3)
An Over-simplified View of the Processes Determining Societal Outcomes	312	(1)
Narrowness of the ``Information Age'' Thesis	313	(1)
Bias Towards Long-term Analyses of Staged Development	314	(1)
Failure to Acknowledge that Technology is Intrinsically Social	314	(1)
The Internet and Society: The Crucial Role of Tele-Access	315	(2)
``Communicative Power'' and the Politics of Information	315	(1)
Key Dimensions of Tele-Access	315	(1)
Social Factors Shaping Choices and their Implications for Access	316	(1)
Encompassing Studies of Influence, Control and Management	317	(2)
Influence and the Mass Media	317	(1)
Technology, Expertise, and Social Control	318	(1)
Management Strategies Related to ICT Use	319	(1)
The Interaction of Strategies within a Broader Ecology of Games	319	(4)
The Internet and Society (Some Comments on Paper by William H. Dutton)	323	(4)
Guenter Heiduk
Knowledge, Work Organisation and Economic Growth	327	(50)
Elena Arnal
Wooseok Ok
Raymond Torres
Introduction	327	(1)
The Changing Nature of Work	328	(18)
The Diffusion of New Work Practices and New Forms of Work	328	(1)
How Prevalent are New Work Practices Among Firms?	329	(2)
Telework: An Emerging Form of Work	331	(3)
A Higher Demand for Knowledge-Intensive Employment	334	(1)
Emerging Labour and Skill Shortages	335	(1)
A Shift Towards Knowledge-Intensive Employment	336	(5)
Employee Tenure: Overall Stability Which Masks Important Underlying Changes	341	(5)
New Work Practices, Skills and Economic Growth	346	(12)
New Work Practices and Growth	347	(1)
Findings form the Existing Literature	348	(1)
Empirical Evidence	349	(6)
Links Between Skills and Economic Growth	355	(3)
Policy Issues	358	(11)
Mobilising Labour Supply	358	(1)
Equipping Workers with the Appropriate Skills	359	(1)
Education in New Technology	360	(1)
Vocational and on the-Job Training	361	(3)
Looking at Migration in a New Light	364	(1)
Enhancing Employment Adjustment: the Role of Collective Bargaining and Government Regulation	365	(4)
Concluding Remarks	369	(8)
Annex I: Survey on New Work Practices Used in the Study	371	(1)
Annex II: Tables	372	(5)
The Quest for Global Leadership in the Internet Age: A European Perspective (Luncheon Speech)	377	(4)
Sigmar Mosdorf
List of Figures	381	(2)
List of Tables	383	(4)
List of Contributors	387