Adoption of digital and ICT technologies and firms’ productivity

Zoran Aralica and Bruno Škrinjarić ()

No 2102, Working Papers from The Institute of Economics, Zagreb

Abstract: This paper has two main goals. First, it aims to answer the question on how the usage of ICT and digital technologies affects firm productivity. Second, it aims to analyze how change in the share of the manufacturing sector and/or the service sector in a given region direct changes in firm productivity. The analysis was carried out using a financial dataset of Croatian enterprises in the period from 2009 to 2019 and Eurostats’ Digital Economy and Society data, based on “Community survey on ICT usage and ecommerce in enterprises”. The data were analyzed using principal component analysis and panel data methods. The results indicate a positive relationship between adoption of ICT technologies and firm productivity, and a negative correlation between adoption of digital technologies and firm productivity. Furthermore, the results show a high degree of deindustrialization of certain regions and a positive correlation between industry intensity in certain regions and firm productivity. Finally, there seems to be a positive premium on productivity for larger-sized firms, firms participating in international trade, companies situated near to key international markets (i.e., located in counties bordering with the City of Zagreb).

Keywords: ICT; digital technologies; economy structure; productivity; Croatia (search for similar items in EconPapers)
JEL-codes: O14 O33 (search for similar items in EconPapers)
Pages: 42 pages
Date: 2021-04
New Economics Papers: this item is included in nep-bec, nep-eff, nep-ict, nep-tid and nep-tra
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:iez:wpaper:2102

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