The impact of ICT on productivity of Italian firms: evaluation of the micro-complementarity hypothesis

Cristiana Donati and Domenico Sarno

Applied Economics Letters, 2013, vol. 20, issue 4, 349-352

Abstract: The seminal work of Milgrom and Roberts (1990) established that interactions between factors such as Information and Communication Technologies (ICTs), organization and human capital entail a complementary relationship between these inputs; from such interactions, firms are able to exploit productivity gains arising from ICT investment. The empirical analysis is conducted on a panel of Italian manufacturing firms covering the period 2001--2006. The application of a suited System Generalized Method of Moments (SYS-GMM) estimator shows that for firms engaging ICT there exists a more coherent relationship between pair inputs and also among all three inputs considered.

Date: 2013
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DOI: 10.1080/13504851.2012.703309

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