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The Productivity impact of E-Commerce in the UK, 2001: Evidence from microdata

Ana Rincon-Aznar, Dr Catherine Robinson () and Michela Vecchi

No 257, National Institute of Economic and Social Research (NIESR) Discussion Papers from National Institute of Economic and Social Research

Abstract: This paper considers the impact of e-commerce on establishment level productivity for all sectors of the economy, using data from the UK E-commerce survey. E-Commerce represents the operational application of technology in the production process and may be regarded as an innovation driven change in workplace practice. Using a production function approach to measuring productivity, we find that OLS estimation fails to adequately account for the selectivity bias amongst enterprises that use e-commerce. Using a treatment effect estimator, we find that both e-buying and e-selling have significant and positive impacts on productivity.

Date: 2005-05
New Economics Papers: this item is included in nep-eec, nep-eff, nep-ict, nep-ino and nep-mkt
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