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

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posted on 24.10.2017 by Yilmaz Kilicaslan, Robin Sickles, Aliye Atay Kayis, Yesim Ucdogruk Gurel
© 2017, Springer Science+Business Media New York. 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.

Funding

This study is a part of project BAP-1210E155 supported by the Scientific Research Commission of Anadolu University, Eskisehir, Turkey.

History

School

  • Business and Economics

Department

  • Business

Published in

Journal of Productivity Analysis

Volume

47

Issue

3

Pages

277 - 289

Citation

KILICASLAN, Y. ...et al., 2017. Impact of ICT on the productivity of the firm: evidence from Turkish manufacturing. Journal of Productivity Analysis, 47(3), pp. 277-289.

Publisher

© Springer

Version

AM (Accepted Manuscript)

Publisher statement

This work is made available according to the conditions of the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International (CC BY-NC-ND 4.0) licence. Full details of this licence are available at: https://creativecommons.org/licenses/by-nc-nd/4.0/

Publication date

2017

Notes

This is a post-peer-review, pre-copyedit version of an article published in Journal of Productivity Analysis. The final authenticated version is available online at: http://dx.doi.org/10.1007/s11123-017-0497-3.

ISSN

0895-562X

eISSN

1573-0441

Language

en

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