Central European Business Review 2024, 13(3):31-47 | DOI: 10.18267/j.cebr.351

Effects of Broadband and Telephone Subscription on Exports in New Global Era: Evidence from Southeast European Countries

Muhamet J. Spahiu ORCID...1, John McArdle ORCID...2, Betim J. Spahiu ORCID...3, Esat Durguti ORCID...4
1 Universum College, Faculty of Economics, Department of Business & Management Prishtina, Kosovo, muhamet.spahiu@universum-ks.org
2 Bertolon School of Business- Salem State University, Faculty of Economics, Department of Finance and Management, Massachusetts, USA, jmcardle@salemstate.edu
3 Kolegji Biznesi, Faculty of Economics, Department of Business & Management Prishtina, Kosovo, betim.spahiu@kolegjibiznesi.com
4 University Isa Boletini- Mitrovica, Faculty of Economics, Department of Bank, Finance, and Accounting, Prishtina, Kosovo, esat.durguti@umib.net (corresponding author)

The overall objective of the present research is to examine the influence of information technology components on the export-to-GDP ratio, especially focused on the changes caused by the events of the 20th century for Southeast European countries (SEC). The motivation for selecting these countries is to evaluate whether they have achieved a sufficient level to adapt digital developments. To overcome these challenges, the study uses a hybrid technique, employing random-effects (RE) and fixed-effects (FE) regression and Arellano-Bond estimations on panel data gathered from 13 countries from 2006 to 2021. The results confirm that fixed broadband subscriptions (FBS), gross formation capital (GFC) and official exchange rate (ORE), have a strong positive effect on the export-to-GDP ratio. Additionally, fixed telephone subscriptions (FTS), foreign direct investments (FDI) and inflation (INF) have a significant negative impact on the export-to-GDP ratio. The Arellano-Bond technique reveals that FBS, INF and ORE have a positive effect on exports, whereas FTS, GFC and FDI have a negative effect. The novelty of this research is that it uses data comparisons that are not related to a single determinant in the economy but are conditioned to advancement, especially concerning global markets and the exploitation of gaps created by changes in supply chains.
Implications for Central European audience: Depending on the research results, it is anticipated that the policy-making structures and other regulatory authorities will create a clear overview of the importance of digitization and its dynamics in the realization of exports and the mitigation of the trade deficit. These discoveries will encourage the highly empowered actors to redesign the policies that will affect the expansion and increase of the quality of the infrastructure of broadband and telephone subscriptions. By expanding and increasing the quality of the economic structure of the respective countries, they will be able to maximize the progress of the export value, which is one of the main goals of almost every country included in the analysis.

Keywords: Export; digitalization; panel data models
JEL classification: C23, F60, O30

Received: August 12, 2023; Revised: October 1, 2023; Accepted: October 9, 2023; Prepublished online: December 2, 2023; Published: July 29, 2024  Show citation

ACS AIP APA ASA Harvard Chicago Chicago Notes IEEE ISO690 MLA NLM Turabian Vancouver
Spahiu, M.J., McArdle, J., Spahiu, B.J., & Durguti, E. (2024). Effects of Broadband and Telephone Subscription on Exports in New Global Era: Evidence from Southeast European Countries. Central European Business Review, 13(3), 31-47. doi: 10.18267/j.cebr.351
Download citation
  • BibTeX (.bib)
  • Bookends (.ris)
  • EasyBib (.ris)
  • EndNote (.enw)
  • EndNote 8 (.xml)
  • ISI WoS (.isi)
  • Medlars (.medlars)
  • Mendeley (.ris)
  • MODS (.xml)
  • Papers (.ris)
  • RefWorks (.txt)
  • RefManager (.ris)
  • RIS (.ris)
  • MS Word (.xml)
  • Zotero (.ris)
    • Open full article

    References

    1. Al Marhubi, F. (2021). The economic complexity, inflation - An observed analysis. Atlantic Economic Journal, 49, 259-271. https://doi.org/10.1007/s11293-021-09727-0 Go to original source...
    2. Arellano, M., & Bover, O. (1995). Another look at the instrumental factor estimation of error components. Journal of Econometrics, 68(1), 29-51. https://doi.org/10.1016/0304-4076(94)01642-D Go to original source...
    3. Arellano, M., & Bond, S. (1991). Some Tests of Specification for Panel Data - Monte Carlo Evidence and an Application to Employment Equations. The Review of Economic Studies, 58(2), 277-297. https://doi.org/10.2307/2297968 Go to original source...
    4. Asiamah, M., Ofori, D., & Afful, J. (2019). Analysis of the determinants of FDI in Ghana. Journal of Asian Business and Economic Studies, 26(1), 56-75. https://doi.org/10.1108/JABES-08-2018-0057 Go to original source...
    5. Bahrini, R., & Qaffas, A. (2019). The impact of information and communication technology on economic growth - Evidence from developing countries. Economies, 7(1). http://dx.doi.org/10.3390/economies7010021 Go to original source...
    6. Baltagi, B. H. (2021). Econometric Analysis of Panel Data. Economics and Finance, Business and Economics (STBE). https://doi.org/10.1007/978-3-030-53953-5 Go to original source...
    7. Banik, B., & Roy, C. K. (2020). Effect of official exchange rate uncertainty on bilateral trade performance in SAARC countries. International Trade, Politics and Development, 5(1), 32-50. https://doi.org/10.1108/ITPD-08-2020-0076 Go to original source...
    8. BarNir, A., Gallaugher, J. M., & Auger, P. (2003). Business process digitization strategy and the impact of firm age and size. Journal of Business Venturing, 18(6), 789-814. https://doi.org/10.1016/S0883-9026(03)00030-2 Go to original source...
    9. Birinci, T., & Kirikkaleli, D. (2021). Modeling broadband, mobile telephone, and economic growth on a macro level: Empirical evidence from G7 countries. Accounting, 7(4), 837-844. https://doi.org/10.5267/j.ac.2021.1.025 Go to original source...
    10. Blundell, R., & Bond, S. (1998). Initial conditions and moment restrictions in dynamic panel data models. Journal of Econometrics, 87(1), 115-143. https://doi.org/10.1016/S0304-4076(98)00009-8 Go to original source...
    11. Bond, S. R. (2002). Dynamic panel data models: A guide to microdata methods and practice. Portuguese Economic Journal, 1(2), 141-162. https://doi.org/10.1007/s10258-002-0009-9 Go to original source...
    12. Brennen, J. S., & Kreiss, D. (2016). Digitalization. The International Encyclopedia of Communication Theory and Philosophy, 1-11. https://doi.org/10.1002/9781118766804.wbiect111 Go to original source...
    13. Broekhuizen, T., Broekhuis, M., Gijsenberg, M., & Wieringa, J. (2021). Introduction to the special issue - Digital business models. Journal of Business Research, 122, 847-852. https://doi.org/10.1016/j.jbusres.2020.04.014 Go to original source...
    14. Chenic, A. Ștefania, Burlacu, A., Dobrea, R. C., Tescan, L., Creţu, A. I., Stanef-Puica, M. R., Godeanu, T. N., Manole, A. M., Virjan, D., & Moroianu, N. (2023). The impact of digitalization on macroeconomic indicators in the New Industrial Age. Electronics, 12(7), 1612. https://doi.org/10.3390/electronics12071612 Go to original source...
    15. Dauti, B., & Elezi, S. (2022). Economic growth in the Central East European Union and the Western Balkan countries in the course of the Stability and Growth Pact and COVID-19. Zbornik radova Ekonomskog fakulteta u Rijeci, 40(1), 29-61. Go to original source...
    16. Debbarma, J., Choi, Y., Yang, F., & Lee, H. (2022). Exports as a new paradigm to connect business and information technology for sustainable development. Journal of Innovation and Knowledge, 7(4). https://doi.org/10.1016/j.jik.2022.100233 Go to original source...
    17. Dellarocas, C. (2003). The digitization of word of mouth - Promise and challenges of online feedback mechanisms. Management Science, 49(10), 1407-1424. Go to original source...
    18. Dima, A. M., Begu, L., Vasilescu, M. D., & Maassen, M. A. (2018). The relationship between the knowledge economy and global competitiveness in the European Union. Sustainability, 10(6), 1706. https://doi.org/10.3390/su10061706 Go to original source...
    19. Durguti, E., Malaj, A. (2022). A Dynamic Panel Gravity Model Application on Trade Openness Determinants - Evidence from Southern and Western European Countries. Journal of Global Business and Technology, Spring Fall 18(1), 1-15.
    20. Durguti, E., Tmava, Q., Demiri-Kunoviku, F., & Krasniqi, E. (2021). Panel estimating effects of macroeconomic determinants on inflation: Evidence of Western Balkan. Cogent Economics and Finance, 9(1). https://doi.org/10.1080/23322039.2021.1942601 Go to original source...
    21. Fetahi-Vehapi, M., Sadiku, L., & Petkovski, M. (2015). Empirical Analysis of the Effects of Trade Openness on Economic Growth - An Evidence for SEE Countries. Procedia Economics and Finance, Volume 19, 17-26. https://doi.org/10.1016/S2212-5671(15)00004-0 Go to original source...
    22. González, J. L., & Ferencz, J. (2018). Digital Trade and Market Openness. OECD Trade Policy Papers, No. 217, Paris OECD Publishing. http://dx.doi.org/10.1787/1bd89c9a-en Go to original source...
    23. Hasanović, E., & Latić, T. (2017). The determinants of excess liquidity in the banking sector of Bosnia and Herzegovina. Graduate Institute of International and Development Studies (No. 11-2017) - Working Paper.
    24. Kallal, R., Haddaji, A., & Ftiti, Z. (2021). ICT diffusion and economic growth: Evidence from the sectorial analysis of a periphery country. Technological Forecasting and Social Change, 162, 120403. https://doi.org/10.1016/j.techfore.2020.120403 Go to original source...
    25. Kim, J., Nam, Ch., Ryu, M. H. (2020). IPTV vs. emerging video services - Dilemma of telcos to upgrade the broadband. Telecommunications Policy, 44(4), 101889. https://doi.org/10.1016/j.telpol.2019.101889 Go to original source...
    26. Kouam, J. C., & Asongu, S. (2022). The non-linear effects of fixed broadband on economic growth in Africa. Journal of Economic Studies. https://doi.org/10.1108/JES-03-2022-0159 Go to original source...
    27. Koutroumpis, P. (2019). The economic impact of broadband - Evidence from OECD countries. Technological Forecasting and Social Change, 148, 119719. https://doi.org/10.1016/j.techfore.2019.119719 Go to original source...
    28. Kumar, R., Stauvermann, J., & Shahzad, H. (2017). Can technology provide a glimmer of hope for economic growth in the midst of chaos? A case of Zimbabwe. Quality & Quantity, (51), 919 - 939. https://doi.org/10.1007/s11135-016-0319-0 Go to original source...
    29. Lusch, R. F., Vargo, S. L., & Tanniru, M. (2010). Service, value networks, and learning. Journal of the Academy of Marketing Science, (38), 19-31. https://doi.org/10.1007/s11747-008-0131-z Go to original source...
    30. Maemunah, S., & Cuaca, H. (2021). Influence of Epidemic COVID-19 on business strategy, IT, and supply chain agility to firm performance in the medical device industry. Linguistics and Culture Review, 5(S1), 661-669. https://doi.org/10.21744/lingcure.v5nS1.1452 Go to original source...
    31. Mahmoodi, Majid, & Mahmoodi, Elahe. (2016). Foreign direct investment, exports, and economic growth - evidence from two panels of developing countries. Ekonomska Istraživanja, 29(1), 938-949. https://doi.org/10.1080/1331677X.2016.1164922 Go to original source...
    32. Matkovski, B., Zekić, S., Đokić, D., Jurjević, Ž., & Đurić, Ivana. (2022). Export Competitiveness of Agri-Food Sector during the EU Integration Process - Evidence from the Western Balkans. Foods, 11(10). https://doi.org/10.3390/foods11010010 Go to original source...
    33. Meijers, H. (2014). Does the Internet generate economic growth, international trade, or both? International Economics & Economic Policy, 11(1-2), 137-163. https://doi.org/10.1007/s10368-013-0251-x Go to original source...
    34. Minges, M. (2015). Exploring the relationship between broadband and economic growth. 102955. Retrieved from https://www.eldis.org/document/A75845
    35. Palmié, M., Miehe, L., Oghazi, P., Parida, V., & Wincent, J. (2022). The Evolution of the Digital Service Ecosystem and Digital Business Model Innovation in Retail - The Emergence of Meta-ecosystems and the Value of Physical Interactions. Technological Forecasting & Social Change, 177, [121496]. https://doi.org/10.1016/j.techfore.2022.121496 Go to original source...
    36. Pheang, P., Liu, J., Sirisrisakulchai, J., Chaiboonsri, C., & Sriboonchitta, S. (2017). Foreign Direct Investment, Exports and Economic Growth in ASEAN Region - Empirical Analysis from Panel Data. Studies in Computational Intelligence, 692. https://doi.org/10.1007/978-3-319-50742-2_43 Go to original source...
    37. Pituch, K. A., & Stevens, J. (2016). Applied multivariate statistics for the social sciences. Pedro Baena-Luna, Isadora Sánchez-Torné, Macarena Pérez-Suárez, Esther García-Río, To what extent are Ph.D. students entrepreneurs? A study from a gender perspective. Strategic Change, 31(2), 211-218. https://doi.org/10.1002/jsc.2490 Go to original source...
    38. Ratten, V. (2021). COVID-19 and entrepreneurship: Future research directions. Strategic Change, 30(2), 91-98. https://doi.org/10.1002/jsc.2392 Go to original source...
    39. Ritter, T., & Pedersen, C. L. (2020). Digitization capability and the digitalization of business models in business-to-business firms - Past, present, and future. Industrial Marketing Management, (86), 180-190. https://doi.org/10.1016/j.indmarman.2019.11.019 Go to original source...
    40. Rodríguez-Crespo, E., & Martínez-Zarzoso, I. (2019). The effect of ICT on trade - Does product complexity matter? Telematics & Informatics, (41), 182-196. https://doi.org/10.1016/j.tele.2019.05.001 Go to original source...
    41. Sahoo, M., & Sethi, N. (2018). The Dynamic Relationship between Export vs Import, and Inflation - Empirical Evidence from India. The Indian Economic Journal, 66(3-4), 294-311. https://doi.org/10.1177/0019466220935552 Go to original source...
    42. Serpil Aday, Mehmet Seckin Aday, (2020). Impact of COVID-19 on the food supply chain. Food Quality and Safety, 4(4), 167-180. https://doi.org/10.1093/fqsafe/fyaa024 Go to original source...
    43. Terzi, N. (2011). The impact of e-commerce on international trade and employment. Procedia Social & Behavioral Sciences, (24), 745-753. https://doi.org/10.1016/j.sbspro.2011.09.010 Go to original source...
    44. Ullah, S., Akhtar, P., & Zaefarian, G. (2018). Dealing with endogeneity bias - The generalized method of moments -[GMM] for panel data. Industrial Marketing Management, (71), 69-78. https://doi.org/10.1016/j.indmarman.2017.11.010 Go to original source...
    45. Veile, JW., Schmidt, MC., & Voigt, KI. (2022). Toward a new era of cooperation: - How industrial digital platforms transform business models in Industry 4.0. Journal of Business Research, (143), 387-405. https://doi.org/10.1016/j.jbusres.2021.11.062 Go to original source...
    46. Vendrell-Herrero, F., Bustinza, O.F., Parry, G., & Georgantzis, N. (2017). Servitization, digitization, and supply chain interdependency. Industrial Marketing & Management, (60), 69-81. https://doi.org/10.1016/j.indmarman.2016.06.01. Go to original source...
    47. Wang, M. L., & Choi, C. H. (2019). How information and communication technology affect international trade - a comparative analysis of BRICS countries. Information Technology for Development, 25(3), 455-474. Go to original source...
    48. Woo Kang, J. & Dagli, S. (2018). International trade and exchange rates. Journal of Applied Economics, 21(1), 84-105, https://doi.org/10.1080/15140326.2018.1526878 Go to original source...
    49. Zhang S., Kalirajan K., & Chen, Ch. (2022). The impact of outward foreign direct investment on China's export - an analysis using two-tier stochastic frontier gravity model. Journal of the Asia Pacific Economy. https://doi.org/10.1080/13547860.2022.2029048 Go to original source...
    50. Zhou, F., Wen H., & Chiang-Lee, Ch. (2022). Broadband infrastructure and export growth. Telecommunications Policy, 46 (5). https://doi.org/10.1016/j.telpol.2022.10234. Go to original source...

    This is an open access article distributed under the terms of the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License (CC BY NC ND 4.0), which permits non-comercial use, distribution, and reproduction in any medium, provided the original publication is properly cited. No use, distribution or reproduction is permitted which does not comply with these terms.


    Return to the content