Session 2D: Digital Economy and Finance (Auditorium 4)
Moderator: Yesim Elhan-Kayalar
Gender, entrepreneurship and coping with the COVID-19 pandemic: The case of GoFood merchants in Indonesia
Yesim Elhan-Kayalar, Yasuyuki Sawada (University of Tokyo); Yana van der Meulen Rodgers (Rutgers University)
This paper examines business performance and crisis-mitigation strategies among micro, small, and medium-sized enterprises (MSMEs) in Indonesia during the COVID-19 pandemic. We utilize a new primary dataset based on administrative records, survey data, and follow-up interviews with merchants using the digital application GoFood, an on-demand cooked food delivery service. Three empirical findings emerge: first, the overall employment size of women-owned businesses shrank more than men-owned businesses after the pandemic outbreak; second, women were more likely than men to cut personal expenditures and use government assistance as crisis-mitigation strategies; and third, competition increased sharply as new merchants entered the platform, with the service areas of both incumbents and entrants shrinking over time. These results have implications for policies on women’s entrepreneurship, the uptake of business development services, and financing programs for MSMEs
JEL Code/s: J16, J21, O12, L11
Entrepreneurship in the digital age
Donghyun Park, Yothin Jinjarak, Cynthia Castillejos-Petalcorin, Gemma Estrada, Yuho Myoda
Despite its vital role in economic development, entrepreneurship or the activity of starting and running a business remains a relatively under-researched topic in economics. To a large extent, this is due to lack of quality data. In this study, we take a deep dive into the Determinants of dynamic entrepreneurship in developing Asia. Our study analyzes ICT-enabled or digital entrepreneurship, which has emerged as potent economic force in recent years. We also construct an index which measures and compares digital entrepreneurial systems across countries. Our analysis re-confirms the importance of institutional factors as determinants of entrepreneurial activity. Finally, based on our analysis, we provide concrete policy options for a more entrepreneurial and dynamic Asia
JEL Code/s: M13, O33, and O43
Cyber security risks and Central Banks’ sentiment on central bank digital currency: Evidence from global cyber-attacks
Shu Tian, Bo Zhao (IMF); Resi Ong Oliva (consultant-ADB)
Many central banks have been exploring issuing central bank digital currency (CBDC) to address existing challenges in the financial system, but little is known how different types of risks would alter their attitude toward CBDC. This paper distinguishes two types of risks associated with cyber security issues—systematic and non-systematic cyber security risks—and examines their impacts on central banks’ sentiment on CBDC. Utilizing a novel narrative-based CBDC sentiment index constructed based on central bankers’ speeches, we find that central banks’ sentiment on CBDC shifted positively following increased losses from cyber-attacks targeting at crypto assets. More interestingly, their sentiment on CBDC significantly declined after more active cyber warfare attacks which underlined potential systematic risks associated digital currencies. The results reveal a general belief among central banks that CBDC could be a new digital solution to protect investors against non-systematic cyber security risks, but central banks remain cautious about systemic cyber security risks associated with CBDC that may challenge security of the financial system.
JEL Code/s: G15, G41, E58
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