Impact of ICT on the productivity of the firm: evidence from Turkish manufacturing

Yilmaz Kilicaslan, Robin Sickles, Aliye Atay Kayış and Yeşim Üçdoğruk Gürel
Additional contact information
Aliye Atay Kayış: Süleyman Demirel University
Yeşim Üçdoğruk Gürel: Dokuz Eylül University

Journal of Productivity Analysis, 2017, vol. 47, issue 3, No 7, 277-289

Abstract: Abstract This paper aims to explore the impact of Information and Communication Technologies (ICT) on labor productivity growth in Turkish manufacturing. This is the first attempt at exploring the impact of ICT on productivity in Turkish manufacturing at the firm level. The analysis is based on firm level data obtained from Turkish Statistical Institute (TURKSTAT) and covers the period from 2003 to 2012. The data used in the analysis includes all firms employing 19+ workers in Turkish manufacturing industry. Growth accounting results show that the contributions of conventional and ICT capital to value added growth are not significantly different from each other. On the other hand, results based both on static (fixed-effects) and dynamic panel data analysis highlight the positive influence on firms’ productivity exerted by ICT capital. The findings show that the impact of ICT capital on productivity is larger by about 25 to 50% than that of conventional capital. This contribution of ICT capital is higher than that of non-ICT capital for small sized and low-tech firms. Our findings imply that investing in ICT capital increases firm productivity by increasing the productivity of labor and also that convention growth accounting approaches may not be adequate to identify such linkages.

Keywords: Productivity; TFP; ICT; Manufacturing industry; Turkey; D24; L60; O14 (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

Downloads: (external link)
http://link.springer.com/10.1007/s11123-017-0497-3 Abstract (text/html)
Access to full text is restricted to subscribers.

Related works:
Working Paper: Impact of ICT on the Productivity of the Firm: Evidence from Turkish Manufacturing (2015)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:kap:jproda:v:47:y:2017:i:3:d:10.1007_s11123-017-0497-3

Ordering information: This journal article can be ordered from
http://www.springer. ... cs/journal/11123/PS2

DOI: 10.1007/s11123-017-0497-3

Access Statistics for this article

Journal of Productivity Analysis is currently edited by William Greene, Chris O'Donnell and Victor Podinovski

More articles in Journal of Productivity Analysis from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().