 Impact of information technology on firm performance: New evidence from Indian manufacturingRupika Khanna and Chandan Sharma Information Economics and Policy, 2022, vol. 60, issue C Abstract: India has risen to prominence as a global supplier of information technology (IT). However, the extent to which IT benefits Indian manufacturing is less well known. We assess the effects of IT capital on firm's growth from 1998 to 2016. We make two significant contributions: (i) we make comparisons between different periods, high-IT intensive and low-IT intensive sectors and 14 manufacturing industries at a disaggregated-level, (ii) to overcome the problems of simultaneity in production function estimation, we employ a recently developed semi-parametric technique. Our findings indicate that (i) IT as a production input contributes significantly to firm's output, yet the estimated effects vary significantly by time-period and industry, (ii) the impact of IT is maximum between 2000 and 2009, and then begins to weaken between 2010 and 2016, (iii) IT elasticities in high- and low-technology sectors appear to be converging, particularly between 2010 and 2016. Keywords: Information technology; Manufacturing; Firm-level; Endogeneity; Control function (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:iepoli:v:60:y:2022:i:c:s0167624522000257 DOI: 10.1016/j.infoecopol.2022.100986 Access Statistics for this article Information Economics and Policy is currently edited by D. Waterman More articles in Information Economics and Policy from Elsevier |
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