In recent times, most of governments make tremendous efforts to build up the information technology (IT) industry. This study investigates whether the huge amount of injection of money to IT industry is really effective to upgrade the national competitiveness through the examination of the relationship between the productivity and informatization. In particular, we test the hypothesis that the informatization level has a positive effect on the productivity at the national level utilizing the aggregate data on index of informatization and productivity. The proxies for productivity are total factor productivity (TFP) and labor productivity. Our main findings are twofold. First is that the informatization level has a positive relationship with total factor productivity in broad sense. Second, the positive relationship between total labor productivity and informatization gets stronger in the countries with relatively higher informatization level, such as USA or Finland.
Cho, Sehyung and Chung, Yong-Kyun, "The Impact of Informatization Level on Productivity" (2001). ICEB 2001 Proceedings. 164.