Table V.

Effects of the internet on firm productivity

AuthorsDataMethodologyMain results
Grimes et al. (2012) 6,060 firms in New ZealandOrdered probit modelThe internet improves firm productivity
The effects are consistent in rural and urban areas and in high and low knowledge industries sectors
Bertschek and Niebel (2016) 2,143 German firmsOrdered probit model; and PSMThe mobile internet improves firm productivity
The impacts are at the early stage of the internet implementation
Wang (2016) 2,848 China manufacturing firmsOLS estimationThe internet improves manufacturing firm productivity
The impacts are weak in a labor-intensive industry
Bartelsman et al. (2019) 117,000 firm-year panel dataOLS estimationThe internet increases firm productivity except for one country
Innovations are not related to productivity in the majority of countries
Colombo et al. (2013) 799 Italian firmsPrincipal component analyzes; and GMMThe internet does not increase firm productivity
It depends on three contingent factors
Haller and Lyons (2015) 2,200 Irish manufacturing firmsTwo-stage least squaresThe internet does not affect firm productivity or productivity growth
Only at specific application scenarios can the internet make an effect
Fabling and Grimes (2016) New Zealand’s longitudinal business databaseInstrument estimationUFB does not affect employment and firm productivity growth
The impacts are depending on investments in organizational capital

Notes:

PSM = propensity score matching; GMM = generalized method of moments

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