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ICT Impact on the Labor Productivity in the Iranian Manufacturing Industries; a Multilevel Analysis

Author

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  • Saeed Moshiri

    (Corresponding Author, Associate Professor, University of Allameh Tabatabaie)

  • Esfandiar Jahangard

    (Assistant Professor,University of Allameh Tabatabaie)

Abstract

It is now evident in the literature that the information and communication technology (ICT) has a positive and significant impact on the productivity and economic growth. Most studies in this area, however, are limited to the developed countries. Given different regulations and economic conditions, and also an increasing trend in allocating resources to ICT in developing countries, it is important to examine the impact of ICT spending in developing countries on the productivity and growth. In this study, we search for an empirical relationship between ICT spending and labor productivity across the Iranian manufacturing industries. We use the survey data on the four-digit large manufacturing industries for the period 2000-2001. In order to control for the heterogeneity among different industry groups, we use the multilevel model. Our results show that the net effect of the ICT on the labor productivity is positive and significant, but not as high as what has been found in the developed countries.

Suggested Citation

  • Saeed Moshiri & Esfandiar Jahangard, 2007. "ICT Impact on the Labor Productivity in the Iranian Manufacturing Industries; a Multilevel Analysis," Iranian Economic Review (IER), Faculty of Economics,University of Tehran.Tehran,Iran, vol. 12(1), pages 121-142, winter.
    • Handle: RePEc:eut:journl:v:12:y:2007:i:1:p:121
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    References listed on IDEAS

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    1. Albertus Aochamub & Daniel J. Motinga & Christoph Stork, 2002. "Economic Development Potential through IP Telephony for Namibia," WIDER Working Paper Series DP2002-84, World Institute for Development Economic Research (UNU-WIDER).
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    Cited by:

    1. Haghshenas, Mohammad & Kasimin, Hasmiah & Berma, Madeline, 2013. "Information and Communication Technology (ICT) and Economic Growth in Iran: Causality Analysis," Jurnal Ekonomi Malaysia, Faculty of Economics and Business, Universiti Kebangsaan Malaysia, vol. 47(2), pages 55-68.

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