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Do information and communications technology spillovers affect labor productivity?

Rouhollah Shahnazi

Structural Change and Economic Dynamics, 2021, vol. 59, issue C, 342-359

Abstract: The relationship between information and communications technology (ICT) and productivity has been examined extensively, but no research has investigated the spatial spillover effects of ICT on labor productivity. Accordingly, this research aimed at investigating the ICT spillover effects on labor productivity in 28 European Union (EU) countries over 2007-2017. The spatial autocorrelation of labor productivity was validated using the global and local Moran's I statistics. Then, the equation for determining labor productivity was estimated using the spatial Durbin model. The results indicated that ICT spillovers played an important role in improving labor productivity in EU countries. A 1% increase in ICT index of the country i would result in an average 0.357% increase in the labor productivity of country i, an average 0.421% increase in the labor productivity of all other countries, and an average 0.778% increase in the labor productivity of all countries.

Keywords: ICT spillovers; Labor productivity; Spatial Durbin model (search for similar items in EconPapers)
JEL-codes: C23 C40 J21 O18 O33 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (10)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:streco:v:59:y:2021:i:c:p:342-359

DOI: 10.1016/j.strueco.2021.09.003

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