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The Effects of Information and Communication Technologies on Labor Productivity and Employment in Turkiye: The ARDL Bounds Test Approach

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  • Fatma Unlu

    (Erciyes Universitesi, IIBF, Iktisat Bolumu, Kayseri, Turkiye)

Abstract

Rapid improvements in the field of information and communication technologies have recently played an active role in the transformation of the international economic order and labor markets, with researchers having frequently discussed the effects of these technologies on macroeconomic indicators such as production, productivity, and employment in the literature. In this context, the purpose of this study is to contribute to investigating the effects of information and communication technologies on labor productivity and employment in Turkey. In order to achieve this aim, the econometric procedure of the autoregressive distributed lag (ARDL) bounds test approach was followed using data from Turkey for the period of 2001-2020. According to the empirical findings obtained from the analyses, the long-term effects of ICT use on both labor productivity and employment are statistically significant and negative. In addition, the Toda-Yamamoto causality test was employed to identify the causality relationships between the variables included in the analyses. The results reveal a bidirectional causality relationship to exist between ICT use and labor productivity as well as between employment and labor productivity.

Suggested Citation

  • Fatma Unlu, 2022. "The Effects of Information and Communication Technologies on Labor Productivity and Employment in Turkiye: The ARDL Bounds Test Approach," Istanbul Journal of Economics-Istanbul Iktisat Dergisi, Istanbul University, Faculty of Economics, vol. 72(72-2), pages 725-751, December.
    • Handle: RePEc:ist:journl:v:72:y:2022:i:2:p:725-751
    DOI: 10.26650/ISTJECON2021-1091191
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    References listed on IDEAS

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    More about this item

    Keywords

    Information and communication technologies; Labor productivity; ARDL bounds test JEL Classification: O33 ; J24 ; C01;
    All these keywords.

    JEL classification:

    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • C01 - Mathematical and Quantitative Methods - - General - - - Econometrics

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