A Study on the Productivities of IT Capital and Computer Labor: Firm-level Evidence from Taiwan’s Banking Industry

Tai-Hsin Huang ()

Journal of Productivity Analysis, 2005, vol. 24, issue 3, 257 pages

Abstract: The current paper extends the non-neutral stochastic frontier production function—which belongs to the class of a one-step procedure as defined by Wang and Schmidt (2002) and developed by Huang and Liu (1994)—from a cross-sectional setting to a panel data modeling. Using a newly-surveyed dataset from Taiwan’s commercial banks on their investments in information and communication technologies (IT), I find that IT capital and computer labor tend to exhibit higher productivities than their non-IT and non-computer counterparts, that IT capital has positive impacts on the marginal productivities of computer labor and borrowed funds, and that the mean technical efficiency is around 87.7%. Evidence is found that the total factor productivity of the banking sector grew at an average rate of 0.28% per annum, albeit fluctuating, for the past 8 years. Copyright Springer Science+Business Media, Inc. 2005

Keywords: IT capital; total factor productivity; technical efficiency; C24; D24 (search for similar items in EconPapers)
Date: 2005
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Citations: View citations in EconPapers (9)

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Persistent link: https://EconPapers.repec.org/RePEc:kap:jproda:v:24:y:2005:i:3:p:241-257

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DOI: 10.1007/s11123-005-4933-4

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