Agus Salim, Jun Wen, Anas Usman Bello, Firsty Ramadhona Amalia Lubis, Rifki Khoirudin, Uswatun Khasanah, Lestari Sukarniati, Muhammad Safar Nasir
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Does information and communication technology improve labor productivity? Recent evidence from the Southeast Asian emerging economies
The comprehension of the textbook and augmented Solow growth model has been studied to picture the consequences of workforce growth and capital. In the age of digitalization, Information and Communications Technology (ICT) is also the first necessity identified factors affecting labor productivity. This paper revisits the augmented Solow growth equation by integrating ICT as an explanator that improves labor productivity in Southeast Asian emerging economies. We used a Two-Way Random-Effects Model to regress the impact of workforce growth rate, physical capital, and human capital on labor productivity. The results show that using human capital is essential to improve output in emerging market countries rather than only using physical capital. According to our adjusted ICT factors, our analysis reveals that using the Internet and mobile cellular significantly boosts labor productivity. Moreover, the analysis of total factor productivity shows that most Southeast Asian economies highly depend on implementing ICT, especially the contribution of Internet usage and mobile cellular. Therefore, this study contributes to further studies and policy recommendations in improving the introduction of Internet usage and installation, especially for the emerging Southeast Asian.
期刊介绍:
Growth and Change is a broadly based forum for scholarly research on all aspects of urban and regional development and policy-making. Interdisciplinary in scope, the journal publishes both empirical and theoretical contributions from economics, geography, public finance, urban and regional planning, agricultural economics, public policy, and related fields. These include full-length research articles, Perspectives (contemporary assessments and views on significant issues in urban and regional development) as well as critical book reviews.