The Effect of Internet Use on Total Factor Productivity: Evidence from OECD Countries

Yujie Ouyang ()
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Yujie Ouyang: Oklahoma State University

A chapter in Proceedings of the 2025 3rd International Academic Conference on Management Innovation and Economic Development (MIED 2025), 2025, pp 596-605 from Springer

Abstract: Abstract This study explores the positive impact and mechanism of Internet on productivity through empirical analysis. The findings highlight the role of internet-driven automation, information access, and innovation in economic growth. It examines the impact of internet use on total factor productivity (TFP) in 38 OECD countries from 2000 to 2019. Using panel data and fixed-effects regression models, the analysis finds a positive relationship between internet use and productivity with a notable lag effect. While increased internet adoption initially lowers productivity, its increases productivity in the long run. These findings reinforce the crucial role of digital connectivity in economic development and provide valuable insights for policymakers and business leaders.

Keywords: Internet use; Total factor productivity; OECD (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:spr:advbcp:978-94-6463-835-6_63

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DOI: 10.2991/978-94-6463-835-6_63

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