The Influence of ICT Adoption on Enhancing Labor Productivity: A Panel Analysis of APEC Developed and Developing Economies

Date

6-2024

Degree

Bachelor of Science in Economics

College

College of Economics and Management (CEM)

Adviser/Committee Chair

Emmanuel Genesis Andal

Committee Member

Gideon P. Carnaje, Maria Angeles O. Catelo

Abstract

The study centers around deriving the effects of ICT adoption on labor productivity in APEC economies, classified into their development levels. It is driven by the observed rise of highly advanced technologies. It responds to the dispute regarding the pre-conceived threats of technology widening the existing divide between rich and poor countries. Growing literature had claimed otherwise, saying that developing economies were already benefitting from ICT as much as developed economies were. The purpose of the study was to confirm whether it is true that developing economies have started to catch up with developed economies. The study is underpinned by the New Growth Theory of Paul Romer, which is an extension of the Solow and Swan Growth model by including endogeneity. Due to the limited availability of data on technology, the study uses ICT indicators, broadband subscriptions, mobile subscriptions, and internet users as the main variables of interest. Their relationship against labor productivity was mainly determined using the RE Regression and is further compared to the relationship of labor productivity to its indicators—GCF, FDI, R&D, and tertiary education. Further, ARDL was used as an attempt to draw out the lagged effects of ICT. The trend of all variables was observed through an in-depth descriptive analysis. Main findings show that the relationship of broadband subscriptions and mobile subscriptions to labor productivity is significant and negative in developed economies. The relationship of internet users to labor productivity in developed economies, on the other hand, is significant and positive. As for the other labor productivity indicators; the relationship of GCF to labor productivity confirms the lagged effects of ICT, with lags of more than one year. Tertiary enrollment and R&D also confirm their positive and significant relationship with labor productivity.

Language

English

LC Subject

Labor Productivity

Location

UPLB College of Economics and Management (CEM)

Call Number

LG 993.5 2024 E2 D63

Notes

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Document Type

Thesis

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