The Effects of Digital-Technology Adoption on Productivity and Factor Demand
This paper presents firm-level estimates of revenue-based total factor productivity premiums of manufacturing firms adopting digital technology in 82 developing economies over 2002–19. The paper estimates productivity using the control function approach and assuming an endogenous revenue-based total factor productivity process, which is a function of multiple firm-choice variables. It estimates the effects of digital technology adoption, learning by exporting, and managerial experience on revenue-based total factor productivity and factor demand. The results reject the 0 hypothesis of an exogenous revenue-based total factor productivity process, in favor of one in which digital technology adoption, along with the other choice variables, affects revenue-based total factor productivity and factor demand. The estimated premiums are positive for 67.3 (email adoption), 54.6 (website adoption), 59.4 (learning by exporting), and 60.6 (managerial experience) percent of the sample. The probability-adjusted median (log) revenue-based total factor productivity premium associated with email adoption is 1.6 percent and that of website adoption is 2.2 percent, with the latter being higher than the premiums corresponding to exporting and managerial experience. On average, changes in digital technology adoption, email, and website are labor and capital augmenting. The paper also explores the role of complementarities among the firm choice variables.
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Format: | Working Paper biblioteca |
Language: | English |
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World Bank, Washington, DC
2020-07
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Subjects: | TOTAL FACTOR PRODUCTIVITY, DIGITAL TECHNOLOGY, JOBS, |
Online Access: | http://documents.worldbank.org/curated/en/829161595512126439/The-Effects-of-Digital-Technology-Adoption-on-Productivity-and-Factor-Demand-Firm-level-Evidence-from-Developing-Countries https://hdl.handle.net/10986/34251 |
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dig-okr-10986342512024-10-17T08:38:59Z The Effects of Digital-Technology Adoption on Productivity and Factor Demand Firm-Level Evidence from Developing Countries Pena, Jorge Cusolito, Ana Paula Lederman, Daniel TOTAL FACTOR PRODUCTIVITY DIGITAL TECHNOLOGY JOBS This paper presents firm-level estimates of revenue-based total factor productivity premiums of manufacturing firms adopting digital technology in 82 developing economies over 2002–19. The paper estimates productivity using the control function approach and assuming an endogenous revenue-based total factor productivity process, which is a function of multiple firm-choice variables. It estimates the effects of digital technology adoption, learning by exporting, and managerial experience on revenue-based total factor productivity and factor demand. The results reject the 0 hypothesis of an exogenous revenue-based total factor productivity process, in favor of one in which digital technology adoption, along with the other choice variables, affects revenue-based total factor productivity and factor demand. The estimated premiums are positive for 67.3 (email adoption), 54.6 (website adoption), 59.4 (learning by exporting), and 60.6 (managerial experience) percent of the sample. The probability-adjusted median (log) revenue-based total factor productivity premium associated with email adoption is 1.6 percent and that of website adoption is 2.2 percent, with the latter being higher than the premiums corresponding to exporting and managerial experience. On average, changes in digital technology adoption, email, and website are labor and capital augmenting. The paper also explores the role of complementarities among the firm choice variables. 2020-07-30T14:44:03Z 2020-07-30T14:44:03Z 2020-07 Working Paper Document de travail Documento de trabajo http://documents.worldbank.org/curated/en/829161595512126439/The-Effects-of-Digital-Technology-Adoption-on-Productivity-and-Factor-Demand-Firm-level-Evidence-from-Developing-Countries https://hdl.handle.net/10986/34251 English Policy Research Working Paper;No. 9333 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank application/pdf World Bank, Washington, DC |
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TOTAL FACTOR PRODUCTIVITY DIGITAL TECHNOLOGY JOBS TOTAL FACTOR PRODUCTIVITY DIGITAL TECHNOLOGY JOBS |
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TOTAL FACTOR PRODUCTIVITY DIGITAL TECHNOLOGY JOBS TOTAL FACTOR PRODUCTIVITY DIGITAL TECHNOLOGY JOBS Pena, Jorge Cusolito, Ana Paula Lederman, Daniel The Effects of Digital-Technology Adoption on Productivity and Factor Demand |
description |
This paper presents firm-level estimates
of revenue-based total factor productivity premiums of
manufacturing firms adopting digital technology in 82
developing economies over 2002–19. The paper estimates
productivity using the control function approach and
assuming an endogenous revenue-based total factor
productivity process, which is a function of multiple
firm-choice variables. It estimates the effects of digital
technology adoption, learning by exporting, and managerial
experience on revenue-based total factor productivity and
factor demand. The results reject the 0 hypothesis of an
exogenous revenue-based total factor productivity process,
in favor of one in which digital technology adoption, along
with the other choice variables, affects revenue-based total
factor productivity and factor demand. The estimated
premiums are positive for 67.3 (email adoption), 54.6
(website adoption), 59.4 (learning by exporting), and 60.6
(managerial experience) percent of the sample. The
probability-adjusted median (log) revenue-based total factor
productivity premium associated with email adoption is 1.6
percent and that of website adoption is 2.2 percent, with
the latter being higher than the premiums corresponding to
exporting and managerial experience. On average, changes in
digital technology adoption, email, and website are labor
and capital augmenting. The paper also explores the role of
complementarities among the firm choice variables. |
format |
Working Paper |
topic_facet |
TOTAL FACTOR PRODUCTIVITY DIGITAL TECHNOLOGY JOBS |
author |
Pena, Jorge Cusolito, Ana Paula Lederman, Daniel |
author_facet |
Pena, Jorge Cusolito, Ana Paula Lederman, Daniel |
author_sort |
Pena, Jorge |
title |
The Effects of Digital-Technology Adoption on Productivity and Factor Demand |
title_short |
The Effects of Digital-Technology Adoption on Productivity and Factor Demand |
title_full |
The Effects of Digital-Technology Adoption on Productivity and Factor Demand |
title_fullStr |
The Effects of Digital-Technology Adoption on Productivity and Factor Demand |
title_full_unstemmed |
The Effects of Digital-Technology Adoption on Productivity and Factor Demand |
title_sort |
effects of digital-technology adoption on productivity and factor demand |
publisher |
World Bank, Washington, DC |
publishDate |
2020-07 |
url |
http://documents.worldbank.org/curated/en/829161595512126439/The-Effects-of-Digital-Technology-Adoption-on-Productivity-and-Factor-Demand-Firm-level-Evidence-from-Developing-Countries https://hdl.handle.net/10986/34251 |
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