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Do information and communications technology spillovers affect labor productivity?

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  • Shahnazi, Rouhollah

Abstract

The relationship between information and communications technology (ICT) and productivity has been examined extensively, but no research has investigated the spatial spillover effects of ICT on labor productivity. Accordingly, this research aimed at investigating the ICT spillover effects on labor productivity in 28 European Union (EU) countries over 2007-2017. The spatial autocorrelation of labor productivity was validated using the global and local Moran's I statistics. Then, the equation for determining labor productivity was estimated using the spatial Durbin model. The results indicated that ICT spillovers played an important role in improving labor productivity in EU countries. A 1% increase in ICT index of the country i would result in an average 0.357% increase in the labor productivity of country i, an average 0.421% increase in the labor productivity of all other countries, and an average 0.778% increase in the labor productivity of all countries.

Suggested Citation

  • Shahnazi, Rouhollah, 2021. "Do information and communications technology spillovers affect labor productivity?," Structural Change and Economic Dynamics, Elsevier, vol. 59(C), pages 342-359.
    • Handle: RePEc:eee:streco:v:59:y:2021:i:c:p:342-359
    DOI: 10.1016/j.strueco.2021.09.003
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    More about this item

    Keywords

    ICT spillovers; Labor productivity; Spatial Durbin model;
    All these keywords.

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • C40 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - General
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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