Lembaga Penyelidikan Ekonomi dan Masyarakat – Fakultas Ekonomi dan Bisnis – Universitas Indonesia

ICT Capital Spending, ICT Sector, and Firm Productivity: Evidence from Indonesian Firm-Level Data

Oktober 3, 2017

(Prasaran ini hanya tersedia dalam bahasa Inggris.)

Chaikal Nuryakin, Faisal Rachman, Ashintya Damayati, Nia Kurnia, dan Moslem Afrizal

Abstract:

This study examined the impact of ICT on ?rm productivity in Indonesia. Using unbalanced panel data of medium and large manufacturing ?rms, we performed two kinds of estimation. The ?rst estimation is Cobb-Douglas production function with output as the dependent variable. Capital was  grouped into non-ICT capital and ICT capital in order to determine the impact of ICT on ?rm’s output creation. The second estimation used total factor  roductivity as the dependent variable, where TFP was estimated using Levinsohn-Petrin productivity estimator. As other internal and external  factors were added to the regression as control variable, the study provides early evidence that while the impact of R&D and innovation still needs to  be further elaborated, ICT capital may have a positive, but not always signi?cant, impact on ?rm’s production and productivity in Indonesia.

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