IT Services and Productivity in European Industries

Francesco Crespi

Chapter 6 in Business Services in European Economic Growth, 2007, pp 116-127 from Palgrave Macmillan

Abstract: Abstract The aim of this study is to verify the hypothesis of a potential positive impact of IT services, namely computer and related services, on productivity which operates indirectly via enhancing efficiency in those industries that use them. This hypothesis is tested through an econometric analysis conducted on a panel of European manufacturing and service industries for the period 1995–2000. The results are statistically robust and they show that the use of IT services is a crucial factor in explaining productivity differentials across European industries. Moreover, the analysis provides evidence that the complementarities between the quality of human capital, deliberate activities carried out to develop and effectively absorb new technological knowledge and the productive use of IT services identify a relevant mechanism to obtain productivity gains.

Keywords: Human Capital; Labour Productivity; Productivity Growth; Business Service; Client Firm (search for similar items in EconPapers)
Date: 2007
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Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-0-230-22879-5_7

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DOI: 10.1057/9780230228795_7

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