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ICT spillovers and productivity in Canada: provincial and industry analysis

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  • Saeed Moshiri

Abstract

Research on the effect of information and communication technology (ICT) on productivity in developed countries is already extensive, but the spillover and time-varying effects of ICT investment across economic activities have been only minimally explored. This paper investigates the impacts of ICT and its spillovers on productivity in Canada, focusing on heterogeneity across provinces and industries over time. The panel data estimation model includes 10 provinces with diverse economic activities for the period 1990–2008, and the two-digit level industries for the period 1981–2008. The findings show that ICT has a positive impact on labour productivity, but the effects vary significantly across provinces, industries, and time. Specifically, while provinces with higher shares of manufacturing and services in their GDP have reaped the benefits of ICT investment, other provinces primarily dependent on natural resources and agriculture are lagging behind. The industry-level analysis also reveals that manufacturing and services industries have benefited from ICT investment much more than primary sector industries. The results further indicate that ICT investment in the USA, a major trading partner, has spilled over to some Canadian provinces and industries and that the overall ICT effects are stabilized in those ICT-intensive provinces and industries.

Suggested Citation

  • Saeed Moshiri, 2016. "ICT spillovers and productivity in Canada: provincial and industry analysis," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 25(8), pages 801-820, November.
    • Handle: RePEc:taf:ecinnt:v:25:y:2016:i:8:p:801-820
    DOI: 10.1080/10438599.2016.1159864
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    References listed on IDEAS

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    1. Paul A. David & Gavin Wright, "undated". "General Purpose Technologies and Surges in Productivity: Historical Reflections on the Future of the ICT Revolution," Working Papers 99026, Stanford University, Department of Economics.
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    3. Lipsey, Richard G. & Carlaw, Kenneth I. & Bekar, Clifford T., 2005. "Economic Transformations: General Purpose Technologies and Long-Term Economic Growth," OUP Catalogue, Oxford University Press, number 9780199290895, Decembrie.
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    2. Yongming Huang & Jamal Khan, 2022. "Has the information and communication technology sector become the engine of China’s economic growth?," Review of Development Economics, Wiley Blackwell, vol. 26(1), pages 510-533, February.
    3. Kim, Keungoui & Bounfour, Ahmed & Nonnis, Alberto & Özaygen, Altay, 2021. "Measuring ICT externalities and their contribution to productivity: A bilateral trade based approach," Telecommunications Policy, Elsevier, vol. 45(2).
    4. Torres, Carla Cecilia, 2021. "Adaptation and Validation of Technostress Creators and Technostress Inhibitors Inventories in a Spanish-Speaking Latin American Country," Technology in Society, Elsevier, vol. 66(C).
    5. 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.
    6. Congbo Chen & Azhong Ye, 2021. "Heterogeneous Effects of ICT across Multiple Economic Development in Chinese Cities: A Spatial Quantile Regression Model," Sustainability, MDPI, vol. 13(2), pages 1-13, January.
    7. Orji Anthony & Ogbuabor Jonathan E. & Anthony-Orji Onyinye I. & Okoro Chinonso & Osondu Daniel, 2020. "Analysis of ICT, Power Supply and Human Capital Development in Nigeria as an Emerging Market Economy," Studia Universitatis „Vasile Goldis” Arad – Economics Series, Sciendo, vol. 30(4), pages 55-68, December.

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