ICT Adoption Drives Productivity in Developed and Developing Countries

Let, Halimahton Sa’diah (), Hanny Zurina Hamzah (), Zulkornain Yusop () and Nur Syazwani Mazlan ()
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Let, Halimahton Sa’diah: Fakulti Ekonomi dan Pengurusan Universiti Putra Malaysia 43400 Serdang Selangor MALAYSIA
Hanny Zurina Hamzah: Fakulti Ekonomi dan Pengurusan Universiti Putra Malaysia 43400 Serdang Selangor MALAYSIA
Zulkornain Yusop: Fakulti Ekonomi dan Pengurusan Universiti Putra Malaysia 43400 Serdang Selangor MALAYSIA
Nur Syazwani Mazlan: Fakulti Ekonomi dan Pengurusan Universiti Putra Malaysia 43400 Serdang Selangor MALAYSIA

Jurnal Ekonomi Malaysia, 2018, vol. 52, issue 3, 205-217

Abstract: This study examined the impact of ICT adoption on productivity in developed and developing countries. Data was gathered among 44 developed and 45 developing countries between 2009 and 2015. As identified in previous literature, the key factors that determine productivity are capital, labour, ICT, human capital, prices, research and development (R&D). The data was analysed using the generalized method of moments (GMM). Findings show that ICT adoption drives labour productivity in developed countries, despite the high mobile broadband prices. There is also an indication that people enjoy being connected regardless of the the increase in the price of broadband, in order to enhance their productivity. However, it was observed that ICT adoption has insignificant impact on productivity in the developing countries. Lastly, developing countries were found to have larger inputs of labour and capital which increased their producitivity.

Keywords: ICT adoption; developed countries; developing countries; generalized method of moments (GMM); productivity (search for similar items in EconPapers)
Date: 2018
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Persistent link: https://EconPapers.repec.org/RePEc:ukm:jlekon:v:52:y:2018:i:3:p:205-217

DOI: 10.17576/JEM-2018-5203-16

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