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A CROSS SECTIONAL ANALYSIS ON THE IMPACTS OF ICT ON TURKISH MANUFACTURING INDUSTRY

Year 2023, Volume: 7 Issue: 1, 41 - 64, 30.03.2023

Abstract

This paper aims to examine the impacts of information and communication technologies (ICT) on firmlevel
productivity in Turkish manufacturing industry. The dataset used in this paper was obtained
from merging TURKSTAT’s Annual Industry and Services Survey and ICT Usage in Enterprises Survey
results. This study examines 2009 and 2019 data and estimates the impacts of ICT usage and ICT
using labor on labor productivity to understand if the adoption of digitalization had impacts on firmlevel
productivity of the manufacturing industry throughout the ten years period. The results of the
empirical analysis suggest a positive impact of ICT usage and ICT using labor on all technological levels
of the manufacturing industry, however according to two-digit breakdown of manufacturing sectors
indicate that only nine out of twenty-two sectors have statistically significant results on ICT usage.

References

  • Aboal, D., & Tacsir, E. (2018). Innovation and productivity in services and manufacturing: the role of ICT. Industrial and Corporate Change, 27(2), 221-241.
  • Álvarez, R. (2016). The impact of R&D and ICT investment on innovation and productivity in Chilean firms. Inter-American Development Bank Technical Note Series: Washington DC, IDB-TN-1056, June.
  • Atasoy, H., Banker, R. D., & Pavlou, P. A. (2016). On the longitudinal effects of IT use on firm-level employment. Information Systems Research, 27(1), 6-26.
  • Barker, G. R., Fuss, M., & Waverman, L. (2008). The Contribution of ICT to Productivity in 18 OECD Countries: Focus on Australia. ANU Centre for Law and Economics Working Paper, (3).
  • Basant, R., Commander, S. J., Harrison, R., & Menezes-Filho, N. (2006). ICT adoption and productivity in developing countries: new firm level evidence from Brazil and India.
  • Bertschek, I., Cerquera, D., & Klein, G. J. (2013). More bits–more bucks? Measuring the impact of broadband internet on firm performance. Information Economics and Policy, 25(3), 190-203.
  • Boston Consulting Group, (2015) “Industry 4.0 The Future of Productivity and Growth in Manufacturing Industries”
  • Brynjolfsson, E. (1993). The productivity paradox of information technology. Communications of the ACM, 36(12), 66-77.
  • Brynjolfsson, E., & Hitt, L. M. (2003). Computing productivity: Firm-level evidence. Review of economics and statistics, 85(4), 793-808.
  • Commander, S., Harrison, R., & Menezes-Filho, N. (2011). ICT and productivity in developing countries: New firm-level evidence from Brazil and India. Review of Economics and Statistics, 93(2), 528-541.
  • Crépon, B., Duguet, E., & Mairessec, J. (1998). Research, innovation and productivi [ty: an econometric analysis at the firm level. Economics of Innovation and new Technology, 7(2), 115-158.
  • Crespi, G., & Zuniga, P. (2012). Innovation and productivity: evidence from six Latin American countries. World development, 40(2), 273-290.
  • Doğruel, A. S., & Doğruel, F. (2008), Türkiye Sanayiine Sektörel Bakış, İstanbul, TUSİAD, Yayın No: TÜSİAD-T/2008–05/466.
  • Gal, P., Nicoletti, G., Renault, T., Sorbe, S., & Timiliotis, C. (2019). Digitalisation and productivity: In search of the holy grail–Firm-level empirical evidence from EU countries. OECD Economics Department Working Papers
  • Grimes, A., Ren, C., & Stevens, P. (2012). The need for speed: impacts of internet connectivity on firm productivity. Journal of Productivity Analysis, 37(2), 187-201.
  • Harrigan, J., Reshef, A., & Toubal, F. (2018). Techies, trade, and skill-biased productivity, National Bureau of Economic Research, (No. w25295).
  • Hawash, R., & Lang, G. (2020). Does the digital gap matter? Estimating the impact of ICT on productivity in developing countries. Eurasian Economic Review, 10(2), 189-209.
  • Jorgenson, D. W., Ho, M. S., & Stiroh, K. J. (2008). A retrospective look at the US productivity growth resurgence. Journal of Economic perspectives, 22(1), 3-24.
  • Kılıçaslan, Y., Sickles, R. C., Atay Kayış, A., & Üçdoğruk Gürel, Y. (2017). Impact of ICT on the productivity of the firm: evidence from Turkish manufacturing. Journal of Productivity Analysis, 47(3), 277-289.
  • Maliranta, M., & Rouvinen, P. (2004). ICT and business productivity: Finnish micro-level evidence. The Economic Impact of ICT; Measurement, Evidence and Implications, 12(6), 213-240.
  • Peraković, D., Periša, M., & Zorić, P. (2019). Challenges and Issues of ICT in Industry 4.0. Design, simulation, manufacturing: The innovation exchange, 259-269.
  • Polder, M., Leeuwen, G. V., Mohnen, P., & Raymond, W. (2009). Productivity effects of innovation modes.
  • Price Waterhouse Coopers (PWC), (2016). Industry 4.0: Building the digital enterprise https://www.pwc. com/gx/en/industries/industries-4.0/landing-page/industry-4.0-building-your-digital-enterpriseapril- 2016.pdf (Accessed on 10 October 10 2022)
  • Stiroh, K. J. (2002). Information technology and the US productivity revival: what do the industry data say?. American Economic Review, 92(5), 1559-1576.
  • Solow, R. (1987). You can see the Computer Age Everywhere but in the Productivity Statistics. New York Review of Books.
  • Tambe, P., & Hitt, L. M. (2012). The productivity of information technology investments: New evidence from IT labor data. Information systems research, 23(3-part-1), 599-617.
  • Taştan, H. (2021). Firmaların Bilişim Teknolojileri Kullanımı ve Verimlilik İlişkisi, Türkiye Ekonomisinde Büyüme, Kalkınma ve Eşitsizlik, Efil Yayınevi, 223-251
  • Taştan, H., & Gönel, F. (2020). ICT labor, software usage, and productivity: Firm-level evidence from Turkey. Journal of Productivity Analysis, 53(2), 265-285.
  • TÜBİSAD (2013), Türkiye Bilişim Sanayicileri Derneği, Bilgi ve İletişim Teknolojileri 2012 Pazar Verileri Raporu https://www.tubisad.org.tr/tr/images/pdf/tubisad-bilgi-merkezi-sunumu-23-mayis-2013. pdf (Accessed on 1 November 2022)
  • TÜBİSAD (2020), Türkiye Bilişim Sanayicileri Derneği, Bilgi ve İletişim Teknolojileri 2019 Pazar Verileri Raporu https://www.tubisad.org.tr/tr/images/pdf/tubisad-bit-2019.pdf (Accessed on 1 November 2022)
  • TÜBİSAD (2020), Turkey’s Digital Transformation Index 2020 https://www.tubisad.org.tr/tr/images/pdf/ tubisad_dde_endeks_report_eng.pdf (Accessed on 29 December 2022)
  • TURKSTAT (2022) Annual Industry and Service Statistics Survey. http://www.tuik.gov.tr
  • TURKSTAT (2022) Information and Communication Technologies Usage in Enterprises Survey. http:// www.tuik.gov.tr
Year 2023, Volume: 7 Issue: 1, 41 - 64, 30.03.2023

Abstract

References

  • Aboal, D., & Tacsir, E. (2018). Innovation and productivity in services and manufacturing: the role of ICT. Industrial and Corporate Change, 27(2), 221-241.
  • Álvarez, R. (2016). The impact of R&D and ICT investment on innovation and productivity in Chilean firms. Inter-American Development Bank Technical Note Series: Washington DC, IDB-TN-1056, June.
  • Atasoy, H., Banker, R. D., & Pavlou, P. A. (2016). On the longitudinal effects of IT use on firm-level employment. Information Systems Research, 27(1), 6-26.
  • Barker, G. R., Fuss, M., & Waverman, L. (2008). The Contribution of ICT to Productivity in 18 OECD Countries: Focus on Australia. ANU Centre for Law and Economics Working Paper, (3).
  • Basant, R., Commander, S. J., Harrison, R., & Menezes-Filho, N. (2006). ICT adoption and productivity in developing countries: new firm level evidence from Brazil and India.
  • Bertschek, I., Cerquera, D., & Klein, G. J. (2013). More bits–more bucks? Measuring the impact of broadband internet on firm performance. Information Economics and Policy, 25(3), 190-203.
  • Boston Consulting Group, (2015) “Industry 4.0 The Future of Productivity and Growth in Manufacturing Industries”
  • Brynjolfsson, E. (1993). The productivity paradox of information technology. Communications of the ACM, 36(12), 66-77.
  • Brynjolfsson, E., & Hitt, L. M. (2003). Computing productivity: Firm-level evidence. Review of economics and statistics, 85(4), 793-808.
  • Commander, S., Harrison, R., & Menezes-Filho, N. (2011). ICT and productivity in developing countries: New firm-level evidence from Brazil and India. Review of Economics and Statistics, 93(2), 528-541.
  • Crépon, B., Duguet, E., & Mairessec, J. (1998). Research, innovation and productivi [ty: an econometric analysis at the firm level. Economics of Innovation and new Technology, 7(2), 115-158.
  • Crespi, G., & Zuniga, P. (2012). Innovation and productivity: evidence from six Latin American countries. World development, 40(2), 273-290.
  • Doğruel, A. S., & Doğruel, F. (2008), Türkiye Sanayiine Sektörel Bakış, İstanbul, TUSİAD, Yayın No: TÜSİAD-T/2008–05/466.
  • Gal, P., Nicoletti, G., Renault, T., Sorbe, S., & Timiliotis, C. (2019). Digitalisation and productivity: In search of the holy grail–Firm-level empirical evidence from EU countries. OECD Economics Department Working Papers
  • Grimes, A., Ren, C., & Stevens, P. (2012). The need for speed: impacts of internet connectivity on firm productivity. Journal of Productivity Analysis, 37(2), 187-201.
  • Harrigan, J., Reshef, A., & Toubal, F. (2018). Techies, trade, and skill-biased productivity, National Bureau of Economic Research, (No. w25295).
  • Hawash, R., & Lang, G. (2020). Does the digital gap matter? Estimating the impact of ICT on productivity in developing countries. Eurasian Economic Review, 10(2), 189-209.
  • Jorgenson, D. W., Ho, M. S., & Stiroh, K. J. (2008). A retrospective look at the US productivity growth resurgence. Journal of Economic perspectives, 22(1), 3-24.
  • Kılıçaslan, Y., Sickles, R. C., Atay Kayış, A., & Üçdoğruk Gürel, Y. (2017). Impact of ICT on the productivity of the firm: evidence from Turkish manufacturing. Journal of Productivity Analysis, 47(3), 277-289.
  • Maliranta, M., & Rouvinen, P. (2004). ICT and business productivity: Finnish micro-level evidence. The Economic Impact of ICT; Measurement, Evidence and Implications, 12(6), 213-240.
  • Peraković, D., Periša, M., & Zorić, P. (2019). Challenges and Issues of ICT in Industry 4.0. Design, simulation, manufacturing: The innovation exchange, 259-269.
  • Polder, M., Leeuwen, G. V., Mohnen, P., & Raymond, W. (2009). Productivity effects of innovation modes.
  • Price Waterhouse Coopers (PWC), (2016). Industry 4.0: Building the digital enterprise https://www.pwc. com/gx/en/industries/industries-4.0/landing-page/industry-4.0-building-your-digital-enterpriseapril- 2016.pdf (Accessed on 10 October 10 2022)
  • Stiroh, K. J. (2002). Information technology and the US productivity revival: what do the industry data say?. American Economic Review, 92(5), 1559-1576.
  • Solow, R. (1987). You can see the Computer Age Everywhere but in the Productivity Statistics. New York Review of Books.
  • Tambe, P., & Hitt, L. M. (2012). The productivity of information technology investments: New evidence from IT labor data. Information systems research, 23(3-part-1), 599-617.
  • Taştan, H. (2021). Firmaların Bilişim Teknolojileri Kullanımı ve Verimlilik İlişkisi, Türkiye Ekonomisinde Büyüme, Kalkınma ve Eşitsizlik, Efil Yayınevi, 223-251
  • Taştan, H., & Gönel, F. (2020). ICT labor, software usage, and productivity: Firm-level evidence from Turkey. Journal of Productivity Analysis, 53(2), 265-285.
  • TÜBİSAD (2013), Türkiye Bilişim Sanayicileri Derneği, Bilgi ve İletişim Teknolojileri 2012 Pazar Verileri Raporu https://www.tubisad.org.tr/tr/images/pdf/tubisad-bilgi-merkezi-sunumu-23-mayis-2013. pdf (Accessed on 1 November 2022)
  • TÜBİSAD (2020), Türkiye Bilişim Sanayicileri Derneği, Bilgi ve İletişim Teknolojileri 2019 Pazar Verileri Raporu https://www.tubisad.org.tr/tr/images/pdf/tubisad-bit-2019.pdf (Accessed on 1 November 2022)
  • TÜBİSAD (2020), Turkey’s Digital Transformation Index 2020 https://www.tubisad.org.tr/tr/images/pdf/ tubisad_dde_endeks_report_eng.pdf (Accessed on 29 December 2022)
  • TURKSTAT (2022) Annual Industry and Service Statistics Survey. http://www.tuik.gov.tr
  • TURKSTAT (2022) Information and Communication Technologies Usage in Enterprises Survey. http:// www.tuik.gov.tr
There are 33 citations in total.

Details

Primary Language English
Subjects Economics
Journal Section Makaleler
Authors

Yasemin Özbal This is me 0000-0001-9808-4465

Publication Date March 30, 2023
Published in Issue Year 2023 Volume: 7 Issue: 1

Cite

APA Özbal, Y. (2023). A CROSS SECTIONAL ANALYSIS ON THE IMPACTS OF ICT ON TURKISH MANUFACTURING INDUSTRY. Journal of Research in Economics, 7(1), 41-64.