The impact of Information and Communication Technology (ICT) on labor productivity: a case study of banking industry

Subject Areas : Financial Economics

Alireza Daghighi Asli ¹ ( Assistant Professor in Economics, Islamic Azad University, Central Tehran Branch. )
Saleh Ghavidel ² ( Assistant Professor in Economics, Islamic Azad University, Firoozkooh Branch )
Parima bahrami zonouz ³ ( MA in Economic, Islamic Azad University Firoozkooh Branch, Members of Young Researchers Club. )

Received: 2015-06-13 Accepted : 2015-06-13 Published : 2008-09-22

Keywords: Economic Growth, ICT, Labor Productivity, Banking industry,

Abstract :

This paper aims to study the impact of ICT on labor productivity in banking industry over the period of 2002-2007. Technique used in this paper is a combination of Cobb–Douglas production function, panel data and e-views software (version 6).The result of estimation indicates that ICT has a positive effect on labor productivity in banking industry. Besides, both human and physical capital has shown to have a positive effect on labor productivity. In the light of our findings it is thus suggested that developing countries such as Iran should provide the enabling environment and facilitate investment in ICT, so that domestic and foreign investors are further encouraged investing in this new area