Revisiting the productivity paradox: A semiparametric smooth coefficient approach based on evidence from Taiwan

Ting Kun Liu, Jong Rong Chen, Cliff J. Huang, Chih Hai Yang

Research output: Contribution to journalArticlepeer-review

3 Scopus citations

Abstract

This paper explores the issue of whether investment in information technology (IT) will bring about the Solow productivity paradox. The semiparametric smooth coefficient approach is applied to implement estimations considering how the non-neutral impact of IT might affect labor productivity and thus contribute to productivity. The empirical results are obtained employing firm-level manufacturing data from Taiwan to show that IT investment has as a significantly positive influence on productivity. Specifically, IT exhibits a significant spillover impact on promoting labor productivity in general, particularly for larger and more IT deepened firms.

Original languageEnglish
Pages (from-to)300-308
Number of pages9
JournalTechnological Forecasting and Social Change
Volume81
Issue number1
DOIs
StatePublished - Jan 2014

Keywords

  • Information technology
  • Semi-parametric smooth coefficient model
  • Spillover

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