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Subject: ICT investment ×

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    Does ICT contribute to labor productivity? an industry-level analysis of the relationship between ICT investments and labor productivity in the Philippines
    (2019-12) Cruz, Karisha Anne E.
    This paper investigates the relationship between ICT hardware and software investments, and labor productivity using a panel data of Philippine industry groups in 2010 to 2015. The study employs random effects models to analyze the panel data. To account for possible sample selection bias, the study uses a Heckman two-step estimator of the full model. Additionally, this paper measures the differentiating effect of ICT when considering industry-specific characteristics (i.e., average firm age, employment size, education, foreign capital participation, corporations, and export-oriented). The findings suggest that industries are more likely to increase labor productivity by investing in ICT software and database systems. The results further provide evidence of the differentiating effect of ICT investments by various industry-specific characteristics. Employment size and share of foreign ownership strengthen the effect of ICT hardware on productivity. Meanwhile, age and share of exporting firms negatively influence the effect of ICT software and hardware, respectively. Both ICT hardware and software investments have no differentiating effect by share of high school workers and share of corporations.
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    The contribution of ICT investment to labor productivity and economic growth in the Philippines 1992-2001
    (2004-10) Boado, Sherry Amour T.; Iriberri, Abegail Valerie V.; Alonzo, Ruperto
    Various studies have shown that there is a positive impact of information and communication technologies (ICT) on economic growth and productivity in a number of developed countries in the 1990s. There are however no major studies which would estimate the contribution of ICT to growth and productivity in developing countries in Southeast Asia. Availability, consistency, and trustworthiness of data have been so far the major setback. The paper makes an attempt, using linear regression analysis, at estimating the contribution of investment in ICT to labor productivity and output growth in the Philippines. Based on the regression results, ICT has a positive and significant relationship with the level of economic development of the Philippines. The findings in this study suggest that ICT does affect output growth and labor productivity. Alongside the presence of ICT, a good share of educated members of the labor force will help improve the productivity accounting. These people are better equipped and matched to the new technologies that the digitalized global economy could offer.