Influence of ICT and Household Assets in the Penetration of Digital Economy in Mexico An Empirical Analysis
Main Article Content
Keywords
Digital Economy, Quantile regression, Probit, Household ICT wealth index, ENDUTIH
Abstract
The objective of this study is to validate the progress in the penetration of the digital economy in Mexico, between 2018 and 2022, from a composite index of household wealth based on microdata from a national telecommunications survey. An index of economic situation at the household level allowed us to measure that economic inequality persists between poor and rich households. Also, probabilistic regression models were used to validate the relationship between household wealth and digital economy participation. The models showed the gap remained practically at the same level between the two years; 26% in favour of the richest households. Educational level, age and experience in using the Internet were confirmed as the main differentiators in the condition of participation in the digital economy. The lack of progress observed in this research raises alarm bells about the lag of the poorest households in the productive use of the Internet and in the scope of its potential benefits. The digital issue should be included in the national political agenda, due to its scope in social, economic and social cohesion terms, along with other national problems, such as poverty, employment or well-being.
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References
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IFT. (2016). Statistical yearbooks. Federal Telecommunications Institute – IFT. https://www.ift.org.mx/estadisticas/anuarios-estadisticos Access date: 2023-10-31
IFT. (2016). Telecommunications 3 1/2 years after the constitutional reform in Mexico, (p. 19). Federal Telecommunications Institute. https://www.ift.org.mx/sites/default/files/contenidogeneral/estadisticas/a3anosreforma-acc.pdf Access date: 2022-11-15
IFT. (2023). Presentation of National Survey of Availability and Use of Telecommunications in Households. ENDUTIH, 2022 [Interview]. https://www.youtube.com/watch?v=ZZuIGdWSqOc Access date: 2023-07-05
INEGI, E. (2024). National Occupation and Employment Survey (ENOE), population aged 15 years and over. https://www.inegi.org.mx/programas/enoe/15ymas/#documentacion Access date: 2024-01-27
INEGI. (2023a). Electronic commerce. Gross added value of electronic commerce. https://www.inegi.org.mx/temas/vabcoel/ Access date: 2023-09-21
INEGI. (2023b). Gross domestic product by federal entity. Base year 2013. https://www.inegi.org.mx/app/tabulados/default.aspx?pr=17&vr=6&in=2&tp=20&wr=1&cno=2 Access date: 2023-06-15
Katz, R. L. (2012). Broadband, digitalization and development in Latin America. 1–79. Economic Commission for Latin America. https://repositorio.cepal.org/handle/11362/4018 Access date: 2018-05-08
Koutroumpis, P. (2009). The economic impact of broadband on growth: A simultaneous approach. Telecommunications Policy, 33(9), 471–485. https://doi.org/10.1016/j.telpol.2009.07.004
Martínez-Domínguez, M. (2020). Digital inequality in Mexico: An analysis of the reasons for non-access and non-use of the internet. PAAKAT: Revista de Tecnología y Sociedad, 10, 1–19. https://doi.org/10.32870/Pk.a10n19.519
Milanovic, B. (2017). Global inequality: A new approach for the age of globalization. Fondo de Cultura Económica. https://books.google.com.mx/books?id=JwUsswEACAAJ Access date: 2023-06-26
Monroy, L., & Vélez, R. (2023). Inequality of opportunities in Nuevo Leon, Mexico. 77–100. Espinosa Yglesias Study Center (CEEY). Access date: 2024-01-17. https://ceey.org.mx/desigualdad-de-oportunidades-en-nuevo-leon-mexico/
Montgomery, M. R., Gragnolati, M., Burke, K. A., & Paredes, E. (2000). Measuring living standards with proxy variables. Demography, 37(2), 155–174. https://doi.org/10.2307/2648118
Montiel, J. M. M. (2016). The digital divide in Mexico: A mirror of poverty. Mexican Law Review, 9(1) 93–102. https://doi.org/10.1016/j.mexlaw.2016.09.005
Ovando, C., & Olivera, E. (2018). Was household internet adoption driven by the reform? Evaluation of the 2013 telecommunication reform in Mexico. Telecommunications Policy, 42(9). https://doi.org/10.1016/j.telpol.2018.03.005
Porter, S. R. (2015). Quantile regression: Analyzing changes in distributions instead of means. In M. B. Paulsen (Ed), Higher Education: Handbook of Theory and Research, Vol. 30 (pp. 335–381). Springer International Publishing. https://doi.org/10.1007/978-3-319-12835-1_8
Pradhan, R. P., Mallik, G., & Bagchi, T. P. (2018). Information communication technology (ICT) infrastructure and economic growth: A causality evinced by cross-country panel data. IIMB Management Review, 30(1). https://doi.org/10.1016/j.iimb.2018.01.001
Qiang, C. Z.-W., Rossotto, C. M., & Kimura, K. (2009). Information and communications for development: Extending reach and increasing impact (p. 320). The World Bank. https://doi.org/10.1596/978-0-8213-7605-8
Rodríguez, J. G. (2019). Internet adoption in Mexico: Proposal for a telecommunications index. Essays Economics Journal, 38(2), Article 2. https://doi.org/10.29105/ensayos38.2-1
SCT. (2017a). Digital Connectivity Program (pp. 1–148). Ministry of Communications and Transportation. https://www.gob.mx/sct/acciones-y-programas/programa-de-conectividad-digital Access date: 2018-05-25.
SCT. (2017b). Mexico Connected Point of the SCT was selected as a finalist for the 2017 World Summit on the Information Society awards. Government of the Republic. https://www.gob.mx/sct/prensa/programa-punto-mexico-conectado-gana-en-la-cumbre-mundial-de-la-sociedad-de-la-informacion-2017 Access date: 2024-01-26.
SCT. (2017c, November 14). SCT reduces “Mexico Connected” goal. The Financial. http://www.elfinanciero.com.mx/empresas/sct-reduce-meta-de-mexico-conectado.html Access date: 2017-11-14
Strassner, E. H., & Nicholson, J. R. (2020). Measuring the digital economy in the United States. Statistical Journal of the IAOS, 36(3), 647–655. https://doi.org/10.3233/SJI-200666
Varian, H. R. (2010). Intermediate microeconomics: A modern approach. New York: W. W (Eight). Norton & Company. https://wwnorton.com/books/9780393689860
World Bank. (2022). World Bank Open Data. World Bank Open Data. https://data.worldbank.org
Wresch, W. (1996). Disconnected: Haves and have-nots in the information age. Rutgers University Press. https://dl.acm.org/doi/10.5555/581037
Ben Abdallah, A., Becha, H., Kalai, M., & Helali, K. (2023). Does Digital Financial Inclusion Affect Economic Growth? New Insights from MENA Region. In R. Jallouli, M. A. Bach Tobji, M. Belkhir, A. M. Soares, & B. Casais (Eds.), Digital Economy. Emerging Technologies and Business Innovation (pp. 195–221). Springer International Publishing. https://doi.org/10.1007/978-3-031-42788-6_13
Bukht, R., & Heeks, R. (2017). Defining, conceptualising and measuring the digital economy (August 3, 2017). Development Informatics Working Paper no. 68. https://doi.org/10.2139/ssrn.3431732
Casanueva-Reguart, C., & Pita, S. A. (2010). Telecommunications, universal service and poverty in Mexico: A public policy assessment (1990–2008). Journal of Telecommunications and Information Technology, 2, 15–27. http://yadda.icm.edu.pl/yadda/element/bwmeta1.element.baztech-article-BAT8-0019-0012
Castaldo, A., Fiorini, A., & Maggi, B. (2018). Measuring (in a time of crisis) the impact of broadband connections on economic growth: An OECD panel analysis. Applied Economics, 50(8), 838–854. https://doi.org/10.1080/00036846.2017.1343448
CEPAL. (2023). Measuring the internet economy in Latin America: The cases of Brazil, Chile, Colombia and Mexico. Economic Commission for Latin America and the Caribbean. https://www.cepal.org/es/publicaciones/48908-medicion-la-economia-internet-america-latina-casos-brasil-chile-colombia-mexico Access date: 2024-01-26
CFE. (2023). CFE – Telecommunications and internet for all. https://cfeinternet.mx/ Access date: 2024-01-17
CONEVAL. (2023). Poverty measurement. https://www.coneval.org.mx/Medicion/Paginas/PobrezaInicio.aspx Access date: 2023-09-06
Deaton, A. (1997). The analysis of household surveys: A microeconometric approach to development policy. World Bank Publications. https://hdl.handle.net/10986/30394 Access date: 2023-10-31
Díaz, H., Sosa, M., & Ortiz, E. (2016). Educational level and differential impact of broad band on economic growth. IOSR Journal of Economics and Finance (IOSR-JEF), 7(3), 1–10. https://doi.org/10.9790/5933-0703030110
EDN. (2021). National Digital Strategy 2021–2024. https://dof.gob.mx/nota_detalle.php?codigo=5628886&fecha=06/09/2021#gsc.tab=0 Access date: 2023-09-
ENDUTIH-INEGI. (2023). National Survey on Availability and Use of Information Technologies in Homes (ENDUTIH) 2022. https://www.inegi.org.mx/programas/dutih/2022/ Access date: 2023-09-06
ENDUTIH-INEGI. (2018). National Survey on Availability and Use of Information Technologies in Homes (ENDUTIH) 2018. https://www.inegi.org.mx/programas/dutih/2018/ Access date: 2024-03-18
ENOE-INEGI. (2023). National Occupation and Employment Survey (ENOE), population aged 15 years and over. https://www.inegi.org.mx/programas/enoe/15ymas/ Access date: 2024-01-27
EPN. (2014). Telecommunications Reform. Executive Summary. (p. 23). Government of the Republic. http://www.gob.mx/epn/es/articulos/reforma-constitucional-en-materia-de-telecomunicaciones-y-radiodifusion
Escobar, R., & Sámano, Y. M. (2018). Regional availability of telecommunications infrastructure. A multivariate analysis. The Economic Quarter, 85(340), 765–799. https://doi.org/10.20430/ete.v85i340.537
EU-EC (2023). Digital Economy and Society Index (DESI). Digital Strategy. https://digital-strategy.ec.europa.eu/es/policies/desi Access date: 2023-04-25
Filmer, D., & Pritchett, L. (1999). The effect of household wealth on educational attainment: Evidence from 35 countries. Population and Development Review, 25(1), 85–120. https://doi.org/10.1111/j.1728-4457.1999.00085.x
Filmer, D., & Pritchett, L. H. (2001). Estimating wealth effects without expenditure data – or tears: An application to educational enrollments in states of India. Demography, 38(1), 115–132. https://doi.org/10.1353/dem.2001.0003
Galperín, H., & Mariscal, J. (2016). Internet and poverty: Evidence and new lines of research for Latin America. Economic Research and Teaching Center (CIDE). https://altexto.mx/internet-y-pobreza-0ldu4.html
Groombridge, D. (2022). Gartner. Top 10 Strategic Technology Trends 2023. https://www.gartner.com/en/articles/gartner-top-10-strategic-technology-trends-for-2023 Access date: 2023-10-30
Gujarati, D., & Porter, D. (2010). Functional forms of regression models. Essentials of Econometrics, vol. 6, 132–177. https://ocd.lcwu.edu.pk/cfiles/Statistics/Stat-503/functionalformsofregressionmodels.pdf
IFT. (2016). Statistical yearbooks. Federal Telecommunications Institute – IFT. https://www.ift.org.mx/estadisticas/anuarios-estadisticos Access date: 2023-10-31
IFT. (2016). Telecommunications 3 1/2 years after the constitutional reform in Mexico, (p. 19). Federal Telecommunications Institute. https://www.ift.org.mx/sites/default/files/contenidogeneral/estadisticas/a3anosreforma-acc.pdf Access date: 2022-11-15
IFT. (2023). Presentation of National Survey of Availability and Use of Telecommunications in Households. ENDUTIH, 2022 [Interview]. https://www.youtube.com/watch?v=ZZuIGdWSqOc Access date: 2023-07-05
INEGI, E. (2024). National Occupation and Employment Survey (ENOE), population aged 15 years and over. https://www.inegi.org.mx/programas/enoe/15ymas/#documentacion Access date: 2024-01-27
INEGI. (2023a). Electronic commerce. Gross added value of electronic commerce. https://www.inegi.org.mx/temas/vabcoel/ Access date: 2023-09-21
INEGI. (2023b). Gross domestic product by federal entity. Base year 2013. https://www.inegi.org.mx/app/tabulados/default.aspx?pr=17&vr=6&in=2&tp=20&wr=1&cno=2 Access date: 2023-06-15
Katz, R. L. (2012). Broadband, digitalization and development in Latin America. 1–79. Economic Commission for Latin America. https://repositorio.cepal.org/handle/11362/4018 Access date: 2018-05-08
Koutroumpis, P. (2009). The economic impact of broadband on growth: A simultaneous approach. Telecommunications Policy, 33(9), 471–485. https://doi.org/10.1016/j.telpol.2009.07.004
Martínez-Domínguez, M. (2020). Digital inequality in Mexico: An analysis of the reasons for non-access and non-use of the internet. PAAKAT: Revista de Tecnología y Sociedad, 10, 1–19. https://doi.org/10.32870/Pk.a10n19.519
Milanovic, B. (2017). Global inequality: A new approach for the age of globalization. Fondo de Cultura Económica. https://books.google.com.mx/books?id=JwUsswEACAAJ Access date: 2023-06-26
Monroy, L., & Vélez, R. (2023). Inequality of opportunities in Nuevo Leon, Mexico. 77–100. Espinosa Yglesias Study Center (CEEY). Access date: 2024-01-17. https://ceey.org.mx/desigualdad-de-oportunidades-en-nuevo-leon-mexico/
Montgomery, M. R., Gragnolati, M., Burke, K. A., & Paredes, E. (2000). Measuring living standards with proxy variables. Demography, 37(2), 155–174. https://doi.org/10.2307/2648118
Montiel, J. M. M. (2016). The digital divide in Mexico: A mirror of poverty. Mexican Law Review, 9(1) 93–102. https://doi.org/10.1016/j.mexlaw.2016.09.005
Ovando, C., & Olivera, E. (2018). Was household internet adoption driven by the reform? Evaluation of the 2013 telecommunication reform in Mexico. Telecommunications Policy, 42(9). https://doi.org/10.1016/j.telpol.2018.03.005
Porter, S. R. (2015). Quantile regression: Analyzing changes in distributions instead of means. In M. B. Paulsen (Ed), Higher Education: Handbook of Theory and Research, Vol. 30 (pp. 335–381). Springer International Publishing. https://doi.org/10.1007/978-3-319-12835-1_8
Pradhan, R. P., Mallik, G., & Bagchi, T. P. (2018). Information communication technology (ICT) infrastructure and economic growth: A causality evinced by cross-country panel data. IIMB Management Review, 30(1). https://doi.org/10.1016/j.iimb.2018.01.001
Qiang, C. Z.-W., Rossotto, C. M., & Kimura, K. (2009). Information and communications for development: Extending reach and increasing impact (p. 320). The World Bank. https://doi.org/10.1596/978-0-8213-7605-8
Rodríguez, J. G. (2019). Internet adoption in Mexico: Proposal for a telecommunications index. Essays Economics Journal, 38(2), Article 2. https://doi.org/10.29105/ensayos38.2-1
SCT. (2017a). Digital Connectivity Program (pp. 1–148). Ministry of Communications and Transportation. https://www.gob.mx/sct/acciones-y-programas/programa-de-conectividad-digital Access date: 2018-05-25.
SCT. (2017b). Mexico Connected Point of the SCT was selected as a finalist for the 2017 World Summit on the Information Society awards. Government of the Republic. https://www.gob.mx/sct/prensa/programa-punto-mexico-conectado-gana-en-la-cumbre-mundial-de-la-sociedad-de-la-informacion-2017 Access date: 2024-01-26.
SCT. (2017c, November 14). SCT reduces “Mexico Connected” goal. The Financial. http://www.elfinanciero.com.mx/empresas/sct-reduce-meta-de-mexico-conectado.html Access date: 2017-11-14
Strassner, E. H., & Nicholson, J. R. (2020). Measuring the digital economy in the United States. Statistical Journal of the IAOS, 36(3), 647–655. https://doi.org/10.3233/SJI-200666
Varian, H. R. (2010). Intermediate microeconomics: A modern approach. New York: W. W (Eight). Norton & Company. https://wwnorton.com/books/9780393689860
World Bank. (2022). World Bank Open Data. World Bank Open Data. https://data.worldbank.org
Wresch, W. (1996). Disconnected: Haves and have-nots in the information age. Rutgers University Press. https://dl.acm.org/doi/10.5555/581037
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Mar 27, 2024
Article Details
How to Cite
Rodríguez Ruiz, J. G., Rodríguez Armenta, C. E., & Rosas González, E. G. (2024). Influence of ICT and Household Assets in the Penetration of Digital Economy in Mexico: An Empirical Analysis. Journal of Telecommunications and the Digital Economy, 12(1), 278–304. https://doi.org/10.18080/jtde.v12n1.876
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Special Issue: Emerging Technologies and Innovation for Digital Economy and Transformation
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Author Biographies
Javier G. Rodríguez Ruiz, National Autonomous University of Mexico
PhD in Economic Studies. Scholar of the Postdoctoral Scholarship Program at UNAM. Economic Research Institute. Advised by Dr. Moritz Alberto Cruz Blanco.
* (javier.unesi@gmail.com)
Carmen E. Rodríguez Armenta, University of Guadalajara, Mexico
(carmenta@redudg.udg.mx)
Eduardo G. Rosas González, University of Guadalajara
Doctor in Sectoral and Strategic Economic Development. Research Professor in the Department of Quantitative Methods.
(eduardo.rosas@academicos.udg.mx)
