Economic impact of ICT innovation and cross-border personal networks

About this project

Japan Grant Number
JP18K01572
Funding Program
Grants-in-Aid for Scientific Research
Funding organization
Japan Society for the Promotion of Science
Project/Area Number
18K01572
Research Category
Grant-in-Aid for Scientific Research (C)
Allocation Type
  • Multi-year Fund
Review Section / Research Field
  • Basic Section 07040:Economic policy-related
Research Institution
  • Kyushu University
Project Period (FY)
2018-04-01 〜 2022-03-31
Project Status
Completed
Budget Amount*help
3,250,000 Yen (Direct Cost: 2,500,000 Yen Indirect Cost: 750,000 Yen)

Research Abstract

In this study, we demonstrate how ICT-enabled offshoring, driven by cross-border movements of skilled labor, has transformed international trade in services since the 2008 global financial crisis.For this purpose, we employed network theory as an analytical framework, and then we conducted a panel data analysis and graphical modeling analysis. Our analysis yields three observations. First, high-income nations traditionally have stronger services trade links with the U.S due to income level proximity. Second, H-1B and L-1 visas appeal to skilled labor in low-income countries and create intensive human resource networks, leading to the expansion of services trade with the U.S. Third, cross-border human networks of skilled labor, as well as ICT networks, have become more significant driving forces to expand international services trade since 2009, while the impact of income level proximity has become less significant and indirect.

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