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The productivity paradox: A meta-analysis

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  • Polák, Petr

Abstract

The impact of information and communication technology (ICT) on economic performance has been the subject of academic research for several decades, and despite the remarkable and significant innovation in computer technology, usage, and investments, only a small growth in productivity has been observed. This observations has been coined the productivity paradox. This paper uses meta-analytical methods to examine publication bias and the size of ICT elasticity. The empirical part is based on a collection of more than 800 estimates of ICT payoff effects from more than 70 studies written in the last 20 years. The meta-analysis reveals a strong presence of publication bias within the ICT productivity literature and, using a mixed effect multilevel model, estimates the ICT elasticity to be only 0.3%, which is more than ten times smaller than what was reported by a previous meta-analysis from 10 years ago.

Suggested Citation

  • Polák, Petr, 2017. "The productivity paradox: A meta-analysis," Information Economics and Policy, Elsevier, vol. 38(C), pages 38-54.
    • Handle: RePEc:eee:iepoli:v:38:y:2017:i:c:p:38-54
    DOI: 10.1016/j.infoecopol.2016.11.003
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    Cited by:

    1. Stanley, T. D. & Doucouliagos, Chris & Steel, Piers, 2015. "Does ICT generate economic growth? A meta-regression analysis," Working Papers eco_2015_9, Deakin University, Department of Economics.
    2. Bozeman, Barry & Youtie, Jan & Jung, Jiwon, 2020. "Robotic Bureaucracy and Administrative Burden: What Are the Effects of Universities’ Computer Automated Research Grants Management Systems?," Research Policy, Elsevier, vol. 49(6).
    3. Ionela Tofan & Elena Condrea, 2022. "Business performance in IT. A multivariate regression analysis," Ovidius University Annals, Economic Sciences Series, Ovidius University of Constantza, Faculty of Economic Sciences, vol. 0(2), pages 217-226, Decembrie.
    4. Karim, Mohammed Shamsul & Nahar, Sharmin & Demirbag, Mehmet, 2022. "Resource-Based Perspective on ICT Use and Firm Performance: A Meta-analysis Investigating the Moderating Role of Cross-Country ICT Development Status," Technological Forecasting and Social Change, Elsevier, vol. 179(C).
    5. Hidemichi Fujii & Akihiko Shinozaki & Shigemi Kagawa & Shunsuke Managi, 2019. "How Does Information and Communication Technology Capital Affect Productivity in the Energy Sector? New Evidence from 14 Countries, Considering the Transition to Renewable Energy Systems," Energies, MDPI, vol. 12(9), pages 1-16, May.
    6. T. D. Stanley & Hristos Doucouliagos & Piers Steel, 2018. "Does Ict Generate Economic Growth? A Meta†Regression Analysis," Journal of Economic Surveys, Wiley Blackwell, vol. 32(3), pages 705-726, July.
    7. Stefan Schweikl & Robert Obermaier, 2020. "Lessons from three decades of IT productivity research: towards a better understanding of IT-induced productivity effects," Management Review Quarterly, Springer, vol. 70(4), pages 461-507, November.
    8. Michal Franta & Tibor Hledik & Jan Vlcek & Michal Dvorak & Zlatuse Komarkova & Adam Kucera & Vaclav Broz & Michal Hlavacek, 2018. "Interest Rates," Occasional Publications - Edited Volumes, Czech National Bank, edition 2, volume 16, number rb16/2 edited by Jan Babecky & Volha Audzei, January.
    9. Olivera Kostoska & Ljupco Kocarev, 2019. "A Novel ICT Framework for Sustainable Development Goals," Sustainability, MDPI, vol. 11(7), pages 1-31, April.
    10. Emanuela Ingusci & Fulvio Signore & Claudio Giovanni Cortese & Monica Molino & Paola Pasca & Enrico Ciavolino, 2023. "Development and validation of the Remote Working Benefits & Disadvantages scale," Quality & Quantity: International Journal of Methodology, Springer, vol. 57(2), pages 1159-1183, April.
    11. Khanna, Rupika & Sharma, Chandan, 2018. "Testing the effect of investments in IT and R&D on labour productivity: New method and evidence for Indian firms," Economics Letters, Elsevier, vol. 173(C), pages 30-34.
    12. Vaclav Broz & Dominika Kolcunova & Simona Malovana & Lukas Pfeifer, 2018. "Risk-Sensitive Capital Regulation," Occasional Publications - Edited Volumes, Czech National Bank, edition 1, volume 16, number rb16/1 edited by Simona Malovana & Jan Frait, January.
    13. Parteka, Aleksandra & Kordalska, Aleksandra, 2023. "Artificial intelligence and productivity: global evidence from AI patent and bibliometric data," Technovation, Elsevier, vol. 125(C).
    14. repec:gdk:wpaper:67 is not listed on IDEAS
    15. Roland W. Scholz & Eric J. Bartelsman & Sarah Diefenbach & Lude Franke & Arnim Grunwald & Dirk Helbing & Richard Hill & Lorenz Hilty & Mattias Höjer & Stefan Klauser & Christian Montag & Peter Parycek, 2018. "Unintended Side Effects of the Digital Transition: European Scientists’ Messages from a Proposition-Based Expert Round Table," Sustainability, MDPI, vol. 10(6), pages 1-48, June.
    16. Khanna, Rupika & Sharma, Chandan, 2021. "Do technological investments promote manufacturing productivity? A firm-level analysis for India," Economic Modelling, Elsevier, vol. 105(C).
    17. Fabio Pieri & Michela Vecchi & Francesco Venturini, 2017. "Modelling the joint impact of R and D and ICT on productivity: A frontier analysis approach," DEM Working Papers 2017/13, Department of Economics and Management.

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    More about this item

    Keywords

    Meta-analysis; Meta-regression analysis; Publication bias; Productivity paradox; Solow paradox; Productivity; Firm; ICT elasticity; IT payoff; Information technology;
    All these keywords.

    JEL classification:

    • C83 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - Survey Methods; Sampling Methods
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity

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