ICT trade and policy trends Scarlett Fondeur Gil Science, Technology, and ICT Branch

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1 to Commemorate the 10th Anniversary of the Fourth Protocol to the GATS ICT trade and policy trends Scarlett Fondeur Gil Science, Technology, and ICT Branch

2 UNCTAD UNCTAD and ICT for development Science, Technology and ICT Branch (former ICT and E-Business Branch)

3 UNCTAD ICT access and use by enterprises Enterprise access to ICT Iceland 2006 Switzerland 2005 Japan 2005 Republic of Korea 2005 Argentina 2005 Canada 2006 New Zealand 2006 Brazil 2006 Norway 2006 EU Mauritius 2006 Australia 2005 Singapore 2006 Hong Kong (China) 2006 Turkey 2005 Panama 2006 Bermuda 2005 Cuba 2006 Thailand 2006 Qatar 2005 Macao (China) 2003 Russian Federation 2005 Egypt 2006 Chile 2005 China 2005 Belarus 2005 Azerbaijan 2006 Enterprises using Internet Employees using Internet Enterprises with a website (of those using Internet) Source: UNCTAD and Eurostat

4 UNCTAD Measuring the economic impact of ICT Three ways to examine link between ICTs and growth: 1. ICT producing sector 2. ICT investments (all industries) 3. ICT use by firms For literature review, see chapter 3 of the UNCTAD Information Economy Report

5 UNCTAD The impact of ICT on labour productivity in OECD countries (at the firm level) Similar technologies impact differently on firms in different markets - a 10% increase in the share of employees using computers results in: 1.8% higher labour productivity in manufacturing and 2.8% in services in Finland (Maliranta & Rouvinen, 2003) 1.3% higher labour productivity in the entire business sector in Sweden (Hagén & Zeed, 2005) 2.1% higher labour productivity in manufacturing and 1.5% in services in the UK (Farooqui, 2005)

6 UNCTAD Joint UNCTAD Thailand NSO Project Impact analysis of ICT use on labour productivity in Thailand (at the firm level) preliminary results Manufacturing firms with a 10% higher share of employees using computers have on average 3.5% higher labour productivity Basic technologies such as computers still make up for an important share of differences between firms in developing countries A higher share of employees using computers makes most difference in terms of production efficiency in: Large firms (more than 80 employees) Middle-aged firms (founded between 1991 and 1996) Firms located in the South Firms engaged in the wood industry (ISIC 20) and machinery & equipment (ISIC 29)

7 UNCTAD World exports of ICT goods, Source: UN COMTRADE

8 UNCTAD Direction of ICT goods trade originating in developed and developing economies, Source: UN COMTRADE

9 UNCTAD Exports of computer and information services by level of development Source: IMF BOP data and UNCTAD calculations

10 UNCTAD Thank you Scarlett Fondeur Gil Associate Economic Affairs Officer Science, Technology and ICT Branch UNCTAD

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