Mr. Barry J. Eichengreen, Romain Lafarguette, Arnaud Mehl, and Claudio Raddatz Kiefer
otherwise have to rely mostly on public signals extracted from observed prices, unlike well-informed investors, who can rely more on private signals, and hence who tend to act as contrarians.
Testing these hypotheses is not easy. Doing so requires a measure of technology that is exogenous to financial variables. Ideally this measure would be time varying, spatially localized, and heterogeneous across time and space.
In this paper we propose such a measure, namely the point-to-point connections to fiber-optic submarinecables that form the backbone of the internet. We
Mr. Barry J. Eichengreen, Romain Lafarguette, and Arnaud Mehl
studies utilizing exogenous changes in geographic proximity, such Giroud (2013) who uses the introduction of new airline routes between headquarters and plants to gauge the impact on plant-level investment and productivity.
7 A detailed account of the early history of submarinecables is Wenzlhuemer (2013) . The account here is drawn from Eichengreen, Lafarguette, and Mehl (2016) .
8 In coaxial cables, the copper or copper-plated steel wire is surrounded by an insulating layer which is in turn enclosed by a metallic shield.
9 This explains why
This paper studies the effect of digitalization on the perception of corruption and trust in tax officials in Africa. Using individual-level data from Afrobarometer surveys and several indices of digitalization, we find that an increase in digital adoption is associated with a reduction in the perception of corruption and an increase in trust in tax officials. Exploiting the exogeneous deployment of submarine cables at the local level, the paper provides evidence of a negative impact of the use of Internet on the perception of corruption. Yet, the paper shows that the dampening effect of digitalization on corruption is hindered in countries where the government has a pattern of intentionally shutting down the Internet, while countries that successfully promote information and communication technology (ICT) enjoy a more amplified effect.
used in previous studies, including the World Bank’s Digital Adoption Index and its components, the UN’s e-Government, eParticipation and Online services indices and the World Bank’s open budget et Public Financial Management (PFM) e-services indices. This allows us to rigorously explore the effect of digitalization on corruption. In addition, we exploit the exogeneous variations in the deployment of submarinecables at the subnational level to identify the causal effect of the use of internet on the perception of corruption.
Moreover, we explore a channel through
International Monetary Fund. Asia and Pacific Dept
Center; (2) Government wide Network Infrastructure under Korean and China Exim Bank Credit; (3) Human Resource Development through establishment of Computer Training Labs at secondary and higher secondary schools and colleges; and (4) Promotion of IT/ITES Industry in the country.
Current Trends in ICT Development
The ICT Policy of Bangladesh aims at building an ICT-driven knowledge-based society. In the light of this policy Bangladesh’s ICT sector is growing at a rapid pace, with increased involvement from local and foreign investors. Submarinecable has