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Informational mobility and productivity: Finnish evidence

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  • Mika Maliranta
  • Petri Rouvinen

Abstract

The labor productivity effects of portability and connectivity of information and communication technology (ICT) are studied with Finnish firm-level data. It is found that a computer with only processing and storage capabilities boosts labor productivity by 9% (corresponding to 5% output elasticity), portability by 32%, wireline connectivity by 14%, and wireless connectivity by 6%. The findings are in line with previous literature and comparisons to ICT costs suggest that firms equate marginal costs and returns. Although increasing ICT penetration can no longer be a major source of productivity growth in developed economies, the relatively new characteristics studied can.

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Bibliographic Info

Article provided by Taylor & Francis Journals in its journal Economics of Innovation and New Technology.

Volume (Year): 15 (2006)
Issue (Month): 6 ()
Pages: 605-616

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Handle: RePEc:taf:ecinnt:v:15:y:2006:i:6:p:605-616

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Related research

Keywords: Productivity; Information and communication technology; Local area network; Mobility; Portability; Wireless;

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References

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  1. White, Halbert, 1980. "A Heteroskedasticity-Consistent Covariance Matrix Estimator and a Direct Test for Heteroskedasticity," Econometrica, Econometric Society, vol. 48(4), pages 817-38, May.
  2. DiNardo, John E & Pischke, Jorn-Steffen, 1997. "The Returns to Computer Use Revisited: Have Pencils Changed the Wage Structure Too?," The Quarterly Journal of Economics, MIT Press, vol. 112(1), pages 291-303, February.
  3. John Van Reenen, 2000. "Who gains when workers train? Training and corporate productivity in a panel of British industries," IFS Working Papers W00/04, Institute for Fiscal Studies.
  4. Nathalie Greenan & Jacques Mairesse, 1996. "Computers and Productivity in France: Some Evidence," NBER Working Papers 5836, National Bureau of Economic Research, Inc.
  5. Ilmakunnas, Pekka & Maliranta, Mika, 2003. "Technology, Labor Characteristic and Wage-productivity Gaps," Discussion Papers 860, The Research Institute of the Finnish Economy.
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Cited by:
  1. Martikainen, Olli & Autere, Jussi & Nurmela, Markku, 2006. "Performance Improvement in Public Organizations, How to Leverage ICT Investments," Discussion Papers 1022, The Research Institute of the Finnish Economy.
  2. Arthur Grimes & Cleo Ren & Philip Stevens, 2009. "The Need for Speed: Impacts of Internet Connectivity on Firm Productivity," Working Papers 09_15, Motu Economic and Public Policy Research.
  3. Hyvärinen, Jari, 2012. "Productivity: An International Comparison," Discussion Papers 1264, The Research Institute of the Finnish Economy.

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