IT investment and firm performance in U.S. retail trade

Mark E. Doms (), Ron S. Jarmin () and Shawn D. Klimek ()

No 2003-19, Working Papers in Applied Economic Theory from Federal Reserve Bank of San Francisco

Abstract: We examine the relationship between investments in information technology (IT) and two measures of retail firm performance: labor productivity and productivity growth over the 1992 to 1997 period. We use untapped firm and establishment micro data from the Censuses of Retail Trade and the Assets and Expenditures Survey. We show that large firms account for most retail IT investment, employment and establishment growth. We find evidence of a significant relationship between IT investment intensity and productivity growth. We found no evidence of a similar link between IT and growth in the number of establishments operated by retail firms.

Keywords: Information technology; Retail trade; Productivity (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-tid
Date: Written 2003
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Working Paper: IT Investment and Firm Performance in U.S. Retail Trade (2002)
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