Title: ICT as general purpose technologies: a micro-econometric investigation on Italian firms
Authors: Concetta Castiglione; Davide Infante
Department of Economics, Trinity College, Dublin 2, Ireland; Department of Economics and Statistics, University of Calabria, 87036 Campus di Arcavacata, Italy
Department of Economics and Statistics, University of Calabria, 87036 Campus di Arcavacata, Italy
Abstract: The impact of Information and Communication Technology (ICT) on Total Factor Productivity (TFP) is analysed under the hypothesis that a greater use of ICT may help firms to increase their efficiency. ICTs are considered as General Purpose Technologies (GPTs), i.e. drastic technological innovations that are characterised by pervasiveness, technological dynamism, and innovative complementarities. The paper concerns a micro-econometric analysis of Italian manufacturing firms using the data of two surveys carried out by Mediocredito Centrale-Capitalia. The impact of ICTs on Italian firms' TFP is analysed under the assumption that ICTs positively influence the TFP directly through investments, and indirectly through the new composition of inputs required by ICTs to fully exploit their benefits. Estimated results confirm that either ICT investments or the complementary factors have a positive influence on firm's TFP. It is also found that firms that invest in ICT are able to reach higher level of efficiency than firms that do not.
Keywords: ICT investment; TFP; total factor productivity; Italy; manufacturing industry; information and communications technology; information technology; micro-econometrics; firm efficiency.
Int. J. of Trade and Global Markets, 2013 Vol.6, No.3, pp.225 - 241
Submission date: 02 Feb 2012
Date of acceptance: 29 May 2012
Available online: 21 May 2013