ICT Investments and Technical Efficiency in Italian Manufacturing Firms: The Productivity Paradox Revisited
AbstractFrom the Seventies the importance of information and communication technologies (ICTs) has been a much debated question. A lot of studies are made in order to understand if the ICTs are able to increase economic growth, firm productivity and firm efficiency. In this study both the translog and the Cobb-Douglas production function are used in order to estimate the impact of information and communication technology on technical efficiency (TE) in the Italian manufacturing firms over the period 1995-2003. Results show that ICT investments positively and significantly affect firm technical efficiency. Moreover, group, size and geographical position are able to influence positively TE. Finally, results show that older firms are in average more efficient than younger ones.
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Bibliographic InfoPaper provided by Trinity College Dublin, Department of Economics in its series Trinity Economics Papers with number tep0408.
Length: 19 pages
Date of creation: Oct 2008
Date of revision:
ICT investment; Productivity Paradox; Stochastic Frontier; Italian manufacturing firms;
Find related papers by JEL classification:
- D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
- L63 - Industrial Organization - - Industry Studies: Manufacturing - - - Microelectronics; Computers; Communications Equipment
- O33 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
This paper has been announced in the following NEP Reports:
- NEP-ALL-2008-11-11 (All new papers)
- NEP-EFF-2008-11-11 (Efficiency & Productivity)
- NEP-KNM-2008-11-11 (Knowledge Management & Knowledge Economy)
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