ICT Adoption and Factor Productivity of Manufacturing Firms in India

By : Vikash Gautam , Niharika

Page No: 71-82

Abstract
This paper examines the effect of information and communication technology (ICT) adoption on the factor productivity of the Indian manufacturing firms during 2010-19. The study focuses on the selfselection and endogenous effects of ICT adoption on capital-labour productivity and discusses strategies to capture untapped growth opportunities. We find that ICT adopters have greater stakes for survival and growth, have a larger proportion of tangible assets, and are intensively engaged in exporting and outreach. In addition, ICT adoption leads to a 155 percent growth in capital productivity and a 62 percent fall in labour productivity – leading to a net growth of 80 percent in the capital-labour productivity ratio.

Authors :
Vikash Gautam : Koan Advisory Group, New Delhi, India.
Niharika : Koan Advisory Group, New Delhi, India.
 

DOI: https://doi.org/10.32381/PROD.2023.64.01.7