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“Internet and enterprise productivity:evidence from Latin America”

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Listed:
  • Juan Jung

    () (AQR-IREA, University of Barcelona)

  • Enrique López-Bazo

    () (AQR-IREA, University of Barcelona)

  • Matteo Grazzi

    () (Inter-American Development Bank)

Abstract

This paper tests three hypotheses regarding the link between internet and firm productivity: i) internet adoption and use constitute a source of productivity growth for firms in Latin America, ii) the intensity of its use also matters, and iii) the link between the new technologies and productivity levels is not uniform over the whole productivity distribution. The evidence in this paper fills the gap of scarce and fragmented literature focused on Latin America, and is aligned with previous research for more developed regions which has generally recognized that Information and Communication Technologies (ICTs) have radically changed how modern business are conducted, benefitting firm performances through several channels, such as increasing the efficiency of internal processes, expanding market reach or increasing innovation.Our findings suggest that low-medium productive firms benefit more from an expansion in internet adoption and use, in comparison with the most productive ones. If this evidence is supposed to reflect long-term effects, then public policies oriented to massify internet adoption and promote internet use intensively will surely contribute to reduce inequalities of enterprise’s productivity levels, promoting a level playing field among Latin American firms, something especially relevant for the most unequal region of the world.

Suggested Citation

  • Juan Jung & Enrique López-Bazo & Matteo Grazzi, 2017. "“Internet and enterprise productivity:evidence from Latin America”," AQR Working Papers 201705, University of Barcelona, Regional Quantitative Analysis Group, revised May 2017.
  • Handle: RePEc:aqr:wpaper:201705
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    File URL: http://www.ub.edu/irea/working_papers/2017/201709.pdf
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    References listed on IDEAS

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    More about this item

    Keywords

    ICT; Internet; Productivity; firms; Latin America JEL classification: D22; O31; O33; O54;

    JEL classification:

    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • O - Economic Development, Innovation, Technological Change, and Growth

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