Digital adoption and productivity: understanding micro drivers of the aggregate effect

Natália Barbosa () and Ana Faria
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Natália Barbosa: Universidade do Minho

No 162, GEE Papers from Gabinete de Estratégia e Estudos, Ministério da Economia

Abstract: Digital technologies have the scope to engender positive effects on productivity at firm and aggregate level. However, empirical evidence and theoretical contributions are ambiguous as mixed findings and diverse explanations have been put forward. We use a rich and representative sample of Portuguese firms over the period 2014-2019 to empirically assess the relationship between digital technologies adoption and productivity. Based on estimations over the entire distribution of firm’s productivity, we find that heterogeneous digital technologies affect differently the dynamics of productivity and the convergence to the frontier. This leads to mixed findings with scope to diverse impact in the aggregate productivity. Moreover, positive and significant effects on productivity require an upgrading on the degree of sophistication and complementarity among digital technologies and benefit from the ability of firms to interact and learn with digitalised peers in the same industry.

Keywords: Digital technologies; Productivity; Spillover effects (search for similar items in EconPapers)
JEL-codes: H81 L20 L25 (search for similar items in EconPapers)
Pages: 40 pages
Date: 2022-06, Revised 2022-06
New Economics Papers: this item is included in nep-bec, nep-cse, nep-eff, nep-eur, nep-sbm and nep-tid
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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https://www.gee.gov.pt//RePEc/WorkingPapers/GEE_PAPERS_162.pdf First version, 2022 (application/pdf)

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