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Computer Network Use and Firms' Productivity Performance: The United States vs. Japan

Author

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  • B.K. Atrostic
  • Kazuyuki Motohashi
  • Sang Nguyen

Abstract

This paper examines the relationship between computer network use and firms’ productivity performance, using micro-data of the United States and Japan. To our knowledge, this is the first comparative analysis using firm-level data for the manufacturing sector of both countries. We find that the links between IT and productivity differ between U.S. and Japanese manufacturing. Computer networks have positive and significant links with labor productivity in both countries. However, that link is roughly twice as large in the U.S. as in Japan. Differences in how businesses use computers have clear links with productivity for U.S. manufacturing, but not in Japan. For the United States, the coefficients of the intensity of network use are positive and increase with the number of processes. Coefficients of specific uses of those networks are positive and significant. None of these coefficients are significant for Japan. Our findings are robust to alternative econometric specifications. They also are robust to expanding our sample from single-unit manufacturing firms, which are comparable in the two data sets, to the entire manufacturing sector in each country, as well as to the wholesale and retail sector of Japan.

Suggested Citation

  • B.K. Atrostic & Kazuyuki Motohashi & Sang Nguyen, 2008. "Computer Network Use and Firms' Productivity Performance: The United States vs. Japan," Working Papers 08-30, Center for Economic Studies, U.S. Census Bureau.
  • Handle: RePEc:cen:wpaper:08-30
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    File URL: https://www2.census.gov/ces/wp/2008/CES-WP-08-30.pdf
    File Function: First version, 2008
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    References listed on IDEAS

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    6. Kazuyuki Motohashi, 2003. "Firm level analysis of information network use and productivity in Japan," Discussion papers 03021, Research Institute of Economy, Trade and Industry (RIETI).
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    Cited by:

    1. Fındık, Derya & Tansel, Aysit, 2013. "Intangible investment and technical efficiency: The case of software-intensive manufacturing firms in Turkey," MPRA Paper 66165, University Library of Munich, Germany, revised 05 Aug 2014.
    2. Derya Findik & Aysit Tansel, 2015. "​ Intangible Investment and Technical Efficiency: The Case of Software-Intensive Manufacturing Firms in Turkey," Working Papers 2015/11, Turkish Economic Association.
    3. Quirós Romero, Cipriano & Rodríguez Rodríguez, Diego, 2010. "E-commerce and efficiency at the firm level," International Journal of Production Economics, Elsevier, pages 299-305.
    4. Willem Thorbecke, 2015. "Understanding Japan's Capital Goods Exports," The Japanese Economic Review, Japanese Economic Association, pages 536-549.
    5. FUKAO Kyoji, 2013. "Explaining Japan's Unproductive Two Decades," Policy Discussion Papers 13021, Research Institute of Economy, Trade and Industry (RIETI).
    6. Kyoji Fukao, 2013. "Explaining Japan's Unproductive Two Decades," Asian Economic Policy Review, Japan Center for Economic Research, vol. 8(2), pages 193-213, December.
    7. FUKAO Kyoji & IKEUCHI Kenta & KWON Hyeog Ug & YoungGak KIM & MAKINO Tatsuji & TAKIZAWA Miho, 2015. "Lessons from Japan's Secular Stagnation," Discussion papers 15124, Research Institute of Economy, Trade and Industry (RIETI).

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