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The economic effects of information technology: firm level evidence from the italian case

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  • G. Atzeni

    ()

  • O. Carboni

    ()

Abstract

Employing a large data set of manufacturing firms the paper tries to assess the impact of information and communication technology (ICT) on productivity growth in Italy and to investigate the differences in ICT adoption between North and South of the country. Not all firms invest in ICT and skills, or better to say, not at the same rate. This situation is found to be at the base of the broad productivity variance across the sample. In Italy performance asymmetry has a strong territorial identity since in the North firms invest more in ICT and ICT complements relatively to the South which appears to be rather backwards. A standard regression methodology is employed to calculate the growth rate of productivity and the impact of ICT adoption on it. We then focus on the different matching between human capital and ICT adoption in the two areas. Our findings support the idea that using ICT has beneficial effects on overall productivity growth. Moreover, the use of ICT can help firms in the South to catch up relatively the northern ones, provided that they employ more skilled workers.

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Bibliographic Info

Paper provided by Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia in its series Working Paper CRENoS with number 200114.

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Date of creation: 2001
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Handle: RePEc:cns:cnscwp:200114

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Related research

Keywords: factor complementarities; firm organisation; human capital; information and communication technologies; new economy;

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References

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  1. Timothy F. Bresnahan & Erik Brynjolfsson & Lorin M. Hitt, 1999. "Information Technology, Workplace Organization and the Demand for Skilled Labor: Firm-Level Evidence," NBER Working Papers 7136, National Bureau of Economic Research, Inc.
  2. Paul M Romer, 1999. "Increasing Returns and Long-Run Growth," Levine's Working Paper Archive 2232, David K. Levine.
  3. Erik Brynjolfsson & Lorin M. Hitt, 2000. "Beyond Computation: Information Technology, Organizational Transformation and Business Performance," Journal of Economic Perspectives, American Economic Association, vol. 14(4), pages 23-48, Fall.
  4. Robert J. Barro, 1998. "Notes on Growth Accounting," NBER Working Papers 6654, National Bureau of Economic Research, Inc.
  5. Matteo Bugamelli & Patrizio Pagano, 2001. "Barriers to investment in ICT," Temi di discussione (Economic working papers) 420, Bank of Italy, Economic Research and International Relations Area.
  6. Vincenzo Atella & Beniamino Quintieri, 1998. "Productivity Growth and the Effects of Recessions," Giornale degli Economisti, GDE (Giornale degli Economisti e Annali di Economia), Bocconi University, vol. 57(3-4), pages 359-386, December.
  7. Gordon, Robert J, 2000. "Does the 'New Economy' Measure up to the Great Inventions of the Past?," CEPR Discussion Papers 2607, C.E.P.R. Discussion Papers.
  8. Brynjolfsson, Erik. & Hitt, Lorin M., 1994. "Information technology as a factor of production : the role of differences among firms," Working papers 3715-94. CCSTR ; #173., Massachusetts Institute of Technology (MIT), Sloan School of Management.
  9. Greenwood, Jeremy & Hercowitz, Zvi & Krusell, Per, 1997. "Long-Run Implications of Investment-Specific Technological Change," American Economic Review, American Economic Association, vol. 87(3), pages 342-62, June.
  10. Paul M Romer, 1999. "Endogenous Technological Change," Levine's Working Paper Archive 2135, David K. Levine.
  11. Jorgenson, Dale W., 1966. "The Embodiment Hypothesis," Scholarly Articles 3403063, Harvard University Department of Economics.
  12. Robert E. Hall & Charles I. Jones, 1999. "Why Do Some Countries Produce So Much More Output per Worker than Others?," NBER Working Papers 6564, National Bureau of Economic Research, Inc.
  13. Andrea Bassanini & Stefano Scarpetta & Ignazio Visco, 2000. "Knowledge, Technology and Economic Growth: Recent Evidence from OECD Countries," OECD Economics Department Working Papers 259, OECD Publishing.
  14. Kevin J. Stiroh & Dale W. Jorgenson, 1999. "Information Technology and Growth," American Economic Review, American Economic Association, vol. 89(2), pages 109-115, May.
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Cited by:
  1. Castiglione, Concetta & Infante, Davide, 2012. "ICTs and lags in technical efficiency gains. A stochastic frontier approach over a panel of Italian manufacturing firms," MPRA Paper 51071, University Library of Munich, Germany.

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