The Impact of E-Commerce Development Index on the Service Sector Employment Market in Iran

Volume 22, Issue 1 - Serial Number 84
Vol. 22, No. 1, spring 2025
Spring 2025
Pages 118-151

Document Type : Research Paper

Authors

1 Graduated from the master's degree in e-commerce economics, Khatam Non-Profit University, Tehran, Iran.

2 Department of Business Economics, Faculty of Economics, Allameh Tabatabaei University, Tehran, Iran.

3 Assistant Professor, Department of Economics, Faculty of Humanities, Khatam University, Tehran, Iran.

Abstract
EXTENDED ABSTRACT
The e-commerce development index measures the level of access, use and skill of using ICT in different regions. On the other hand, employment is considered as one of the macroeconomic variables, which is very important to pay attention to because of the widespread unemployment in the country. The current research has been studied with the hypothesis of the positive effect of e-commerce on employment in the service sector of the country, according to the statistics of 31 provinces, in a period of 4 years (1395-1398) using panel data method. The results of the estimation of the model according to the significance of the variables in this study show that the ICT skill index has a negative effect and the mobile broadband internet penetration coefficient has a positive effect on employment.
 
INTRODUCTION
The high volume of Internet users in the country has provided a market for online businesses, which increases the demand for human resources who have sufficient skills at the level of modern technologies. Considering the significant job-seeking population in the country, the development of ICT infrastructure can provide a platform for the promotion of e-commerce, which includes a large portion of employment in the service sector. Therefore, by using the e-commerce development index, it is possible to examine its positive and negative effects on the employment market, and by providing a solution, a step can be taken to solve the problem of unemployment, which is one of the most important economic problems in the country's development.
 
METHODOLOGY
This research aims to examine the hypothesis of the positive impact of ICT indicators on employment using the panel estimation method and in a 4-year period for 31 provinces of the country. The provincial statistics related to employment, GDP and capital stock were extracted from the website of Iran Statistics Center. The variable of mobile broadband internet penetration was obtained from the regulation and radio communications website and the skill index statistics were obtained from the website of the Ministry of Communications.
 
FINDINGS
The results indicate the positive effect of internet penetration on employment. Considering that employment statistics are related to people of working age, as a result, the share of service sector employees has increased. With a 1% increase in the skill index, employment in the service sector decreases by 0.2%. In fact, having digital literacy for the use of ICT in business is an essential part of business development. The real GDP variable with a positive effect of  0.1% of a on employment states that if production increases by 1%, if ICT tools are used, employment increases by 0.1% .
 
CONCLUSION
Among the examined indices, mobile broadband internet penetration rate confirms the research hypothesis and ICT skill index rejects it, but has a significant relationship with it. With the facilities that ICT has put in front of the communities, it has brought the production and employment process with positive effectiveness.

Keywords

Subjects
Americo, A., & Veronico, A. (2018). The effect of e-commerce on employment in retail sector. Mimeo: New York, NY, USA..
Alderete, M. V. (2015). Does digital proximity between countries impact entrepreneurship?. info.
Amiri, S., & Woodside, J. M. (2017). Emerging markets: the impact of ICT on the economy and society. Digital Policy, Regulation and Governance.
Chan, B., & Al‐Hawamdeh, S. (2002). The development of e-commerce in Singapore: The impact of government initiatives. Business process management journal.
Emadzadeh, M., Shahnazi, R., MohammadZadeh, A., & Babaki, R. (2006). The Effect of information and communication technology on employment. Journal of Economic Research (Tahghighat-e-Eghtesadi). 41(4), 197-218. Available at: https://jte.ut.ac.ir/article_18220.html?lang=en (in Persian)
Estaji, A., Roayaei, M., & Mohammadi, A. (2017). The quantitative and qualitative analysis of broadband technology on the economy. Journal of Science and Technology Policy letters. 7(2), 55-73.  Available at: http://stpl.ristip.sharif.ir/article_20263.html (in Persian)
Farhadi, M., Ismail, R., & Fooladi, M. (2012). Information and communication technology use and economic growth. PloS one, 7(11), e48903.
Haerizadeh, A., Shahhosseini, S., Tavakolian, H., & Taee, H. (2018). The Effct of Information and Communication Technology (ICT) on Employment in Selected of Developing Countries. Thesis Submitted in Partial Fulfillment of the Requirements for the Degree of Master of Science (M.Sc) in Economics. Allameh Tabataba'i University Faculty of Economics. (in Persian)
ICT development statistics in the provinces, information society monitoring, Ministry of Communication and Information Technology. available at: https://mis.ito.gov.ir/ictindex/provinceindex/1007
Jahangard, A., & Alinaghi, N. (2018). The Causal Relationship between information and communication technology investment and labor productivity Growth. Journal of New Economy and Commerce. 13(1), 21-44. ‎Available at: https://www.sid.ir/paper/385990/fa (in Persian)
Kılıçaslan, Y., & Töngür, Ü. (2019). ICT and employment generation: evidence from Turkish manufacturing. Applied Economics Letters, 26(13), 1053-1057.
Laudon, K.C, & Traver,C.G. (2016). E-Commerce. Business. Technology. Society. GLOBAL EDITION. TWELFTH EDITION.
Lobo, B. J., Alam, M. R., & Whitacre, B. E. (2020). Broadband speed and unemployment rates: Data and measurement issues. Telecommunications Policy, 44(1), 101829.
Mahmoodi, M., & Mahmoodi, E. (2011). The Effect of ICT on Employment of Service Sector in Iran. Quarterly Journal of Economic Research and policies. 19(58), 213-236. Available at: https://qjerp.ir/article-1-211-fa.html (in Persian)
MahmoudZadeh, M., & Asadi, F. (2005). Information and communication technology infrastructures and employment in Iran's service sector. Journal of New Economy and Commerce. 3(1), 118-95. Available at: https://www.noormags.ir/view/fa/articlepage/5363/116/text (in Persian)
Mahmoodzadeh, M., Ghavidel, S., & Chavoshi, S.F.  (2018). The Effects of E-Commerce on Employment and Productivity in Iran. Journal of Economics Research, 18(68), 153-185. Available at: https://joer.atu.ac.ir/article_8690.html (in Persian)
Maleki, N. (2018). An analysis of the state of information and communication technology in Iran. Statistics (analytical-research bimonthly), 5(6), 31-34.
Miliotis, P., Poulymenakou, A., & Doukidis, G. (1998, September). The shift towards electronic commerce: Market transformation and employment impact. In International Conference on Theory and Practice of Digital Libraries (pp. 857-872). Springer, Berlin, Heidelberg.
Nissen, M. E., & Gates, W. R. (2004). Experimental analysis of e-employment market designs. Journal of Organizational Computing and Electronic Commerce, 14(3), 195-222.
Colecchia, A. (2001). Defining and measuring e-commerce: Issues for discussion. In IAOS Satellite Meeting on Statistics for the Information Society.
Provincial GDP statistics, regional accounts, Statistical Centre of Iran.  available at: https://www.amar.org.ir/
Sadeghi, S.K., Saremi, M., & Garshasebi, S. (2013). Inter-Provincial Comparison of ICT Impact on Employment in Iran. Journal of Science and Technology Policy. 5(3), 45-54. Available at: https://jstp.nrisp.ac.ir/article_12880.html?lang=fa (in Persian)
Samimi, S., & Hojabr Kiani, K. (2014). Effect of Information and Communications Technology on Employment of  Iran’s  Manufacturing Industries. Quarterly Journal of Economic Research and policies. 22(70), 55-74. Available at: http://qjerp.ir/article-1-610-fa.html (in Persian)
SepehrDoust, H., & Khodaee, H. (2009). The inpact of information and Communication Technology on Employment in Selected OIC Members. Journal of New Economy and Commerce. 5(19-20), 17-35.  Available at: https://www.sid.ir/paper/118648/fa (in Persian)
Shaukti, A. (2013). Profit on e-commerce indicators and available statistics in this field. Statistics (analytical-research bimonthly), 1(2), 20-24.
Singh, S. (2008). Impact of Internet and E-commerce on the Labour Market. Indian Journal of Industrial Relations, 43(4), 633-644.
Statistics and information of the ICT Department, Radio Communications Regulatory Organization. Available at: https://opendata.cra.ir/ (in Persian)
Terzi, N. (2016). The impact of e-commerce on international trade and employment. In Encyclopedia of E-Commerce Development, Implementation, and Management (pp. 2271-2287). IGI Global.
The results of the labor force survey project, Statistical Centre of Iran, Available at: https://www.amar.org.ir/ (in Persian)
The performance report of the second year of the Ministry of Communications and Information Technology In the twelfth government - summer 1398. (2019). Available at: https://www.ict.gov.ir/report98.pdf (in Persian)
Qiwang, Z., & Xiaorui, W. (2020). Factors Influencing Employment Rate and Mobility of Science and Engineering and Economics and Management Graduates in Northeast China: An Examination. SAGE Open, 10(2), 2158244020931935.
UNCTAD, Information Economy Report, Digitalization, Trade & Development. (2017).
United Nations Conference on Trade and Development. (2017). Information economy report 2017: digitalization, trade and development. UN.https://www.itu.int/en/ITU-D/Statistics/Pages/bigdata/default.aspx
Zahedi, F., Shahhosseini, S., & Tavakolian, H., & Mohammadi, T. (2017).  The Impact of Information and Communication Technology on demand for labour in the selected developing countries. Thesis Submitted in Partial Fulfillment of the Requirements for the Degree of Master of Science (M.Sc.) Economics and E-commerce In Economics. Allameh Tabataba'i University Faculty of Economics. (in Persian)
Zhao, J. (2020). Internet usage and rural self-employment in China. Asian Perspective, 44(1), 77-101.
Wieman, C. (1998). The high-tech transition: Technology and the prospects for improving infrastructure performance. Journal of Urban Technology, 5(2), 21-46.
World Trade Organization (WTO). (2020). E-commerce, trade and the COVID-19 pandemic. WTO Working Papers, No. 2020/05, WTO, Geneva.
 
  • Receive Date 05 February 2022
  • Revise Date 03 September 2022
  • Accept Date 11 September 2022
  • First Publish Date 01 October 2022
  • Publish Date 22 May 2025