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The Effect of Internet Use on Total Factor Productivity: Evidence from OECD Countries

In: Proceedings of the 2025 3rd International Academic Conference on Management Innovation and Economic Development (MIED 2025)

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  • Yujie Ouyang

    (Oklahoma State University)

Abstract

This study explores the positive impact and mechanism of Internet on productivity through empirical analysis. The findings highlight the role of internet-driven automation, information access, and innovation in economic growth. It examines the impact of internet use on total factor productivity (TFP) in 38 OECD countries from 2000 to 2019. Using panel data and fixed-effects regression models, the analysis finds a positive relationship between internet use and productivity with a notable lag effect. While increased internet adoption initially lowers productivity, its increases productivity in the long run. These findings reinforce the crucial role of digital connectivity in economic development and provide valuable insights for policymakers and business leaders.

Suggested Citation

  • Yujie Ouyang, 2025. "The Effect of Internet Use on Total Factor Productivity: Evidence from OECD Countries," Advances in Economics, Business and Management Research, in: Barbara Siuta-Tokarska & Adriana Grigorescu & Md. Mamun Habib & Yifeng Zhu (ed.), Proceedings of the 2025 3rd International Academic Conference on Management Innovation and Economic Development (MIED 2025), pages 596-605, Springer.
    • Handle: RePEc:spr:advbcp:978-94-6463-835-6_63
    DOI: 10.2991/978-94-6463-835-6_63
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