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Measuring the indirect effect of the Internet on the relationship between human capital and labor productivity

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  • Nicole Ballouz Baker
  • Mona Said Boustany
  • Maroun Khater
  • Christian Haddad

Abstract

In an attempt to lift data availability constraints, this paper investigates into the third level digital divide in 65 developing countries for the period 2000–2014, by studying the existence of a mediating impact of Internet use on the relationship between human capital and total labor productivity, and labor productivity by sector. Results of our mediation models with fixed effects panel regressions and Bootstrapping revealed an Internet use mediation effect of 24.20% on the total effect of human capital on total labor productivity, 27% on labor productivity in services and 23% in industry. Mediation was found to be inconsistent in agriculture.

Suggested Citation

  • Nicole Ballouz Baker & Mona Said Boustany & Maroun Khater & Christian Haddad, 2020. "Measuring the indirect effect of the Internet on the relationship between human capital and labor productivity," International Review of Applied Economics, Taylor & Francis Journals, vol. 34(6), pages 821-838, November.
    • Handle: RePEc:taf:irapec:v:34:y:2020:i:6:p:821-838
    DOI: 10.1080/02692171.2020.1792421
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    Cited by:

    1. Guo, Xiaochuan & Li, Mengmeng & Wang, Yanlin & Mardani, Abbas, 2023. "Does digital transformation improve the firm’s performance? From the perspective of digitalization paradox and managerial myopia," Journal of Business Research, Elsevier, vol. 163(C).
    2. Xiao Yu & Shu Liu, 2022. "Disparities in Online Use Behaviours and Chinese Digital Inclusion: A 10-Year Comparison," IJERPH, MDPI, vol. 19(19), pages 1-21, September.

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