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It and Productivity in U.S. Manufacturing: Do Computer Networks Matter?

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Author Info
B. K. Atrostic
Sang V. Nguyen

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Abstract

The link between information technology and productivity is clear. Yet how computers affect productivity is not well understood. Ours is the first study using data for approximately 30,000 U.S. manufacturing plants to examine the effect of computer networks on productivity. We find a positive and significant relationship between computer networks and plant labor productivity. Plants with lower productivity in earlier periods are also more likely to have a computer network, supporting the hypothesis that plants use networks to catch up. The positive network effect remains significant when we account for endogenous computer networks. (JEL L6, O3) Copyright 2005, Oxford University Press.

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File URL: http://hdl.handle.net/10.1093/ei/cbi033
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Publisher Info
Article provided by Oxford University Press in its journal Economic Inquiry.

Volume (Year): 43 (2005)
Issue (Month): 3 (July)
Pages: 493-506
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Handle: RePEc:oup:ecinqu:v:43:y:2005:i:3:p:493-506

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Find related papers by JEL classification:
L6 - Industrial Organization - - Industry Studies: Manufacturing
O3 - Economic Development, Technological Change, and Growth - - Technological Change

Cited by:
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  1. Mirko Draca & Raffaella Sadun & John Van Reenen, 2006. "Productivity and ICT: A Review of the Evidence," CEP Discussion Papers dp0749, Centre for Economic Performance, LSE. [Downloadable!]
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This page was last updated on 2009-10-23.

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