Distributional Effects of Fourth Industrial Revolution Technology on Productivity: Evidence from Korean Firm-level Data
We consider the impacts of a new information and communications technology, referred to as the Fourth Industrial Revolution (4IR) technology, on firm productivity by using a Korean dataset. We estimate the total factor productivity (TFP) of each firm using the control function approach for estimatin...
| Main Authors: | , |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
World Scientific Publishing Co. Pte Ltd.
2022-12-01
|
| Series: | International Journal of Empirical Economics |
| Subjects: | |
| Online Access: | https://www.worldscientific.com/doi/10.1142/S2810943022500135 |
| _version_ | 1797672175407202304 |
|---|---|
| author | Minji Rhyu Sungwon Lee |
| author_facet | Minji Rhyu Sungwon Lee |
| author_sort | Minji Rhyu |
| collection | DOAJ |
| description | We consider the impacts of a new information and communications technology, referred to as the Fourth Industrial Revolution (4IR) technology, on firm productivity by using a Korean dataset. We estimate the total factor productivity (TFP) of each firm using the control function approach for estimating the production functions, and then estimate the impacts of 4IR technology on TFP. We consider quantile regression models to account for the potential heterogeneity in the effects across TFP distribution. Overall, 4IR technology is beneficial to firms with a high level of productivity, suggesting that there is substantial heterogeneity in the effects that cannot be captured by the conditional mean regression. Our results contribute to the literature by investigating the distributional effects (quantile treatment effects) of the use of new technology on productivity, and these findings are expected to have rich implications for policies regarding support on the use of 4IR technology and R&D. |
| first_indexed | 2024-03-11T21:26:18Z |
| format | Article |
| id | doaj.art-d211d612928342679cf1d45c698e2366 |
| institution | Directory Open Access Journal |
| issn | 2810-9430 2810-9449 |
| language | English |
| last_indexed | 2024-03-11T21:26:18Z |
| publishDate | 2022-12-01 |
| publisher | World Scientific Publishing Co. Pte Ltd. |
| record_format | Article |
| series | International Journal of Empirical Economics |
| spelling | doaj.art-d211d612928342679cf1d45c698e23662023-09-28T04:15:06ZengWorld Scientific Publishing Co. Pte Ltd.International Journal of Empirical Economics2810-94302810-94492022-12-01010410.1142/S2810943022500135Distributional Effects of Fourth Industrial Revolution Technology on Productivity: Evidence from Korean Firm-level DataMinji Rhyu0Sungwon Lee1Department of Economics, Sogang University, 35 Baekboem-ro, Mapo-gu, Seoul 04107, South KoreaDepartment of Economics, Sogang University, 35 Baekboem-ro, Mapo-gu, Seoul 04107, South KoreaWe consider the impacts of a new information and communications technology, referred to as the Fourth Industrial Revolution (4IR) technology, on firm productivity by using a Korean dataset. We estimate the total factor productivity (TFP) of each firm using the control function approach for estimating the production functions, and then estimate the impacts of 4IR technology on TFP. We consider quantile regression models to account for the potential heterogeneity in the effects across TFP distribution. Overall, 4IR technology is beneficial to firms with a high level of productivity, suggesting that there is substantial heterogeneity in the effects that cannot be captured by the conditional mean regression. Our results contribute to the literature by investigating the distributional effects (quantile treatment effects) of the use of new technology on productivity, and these findings are expected to have rich implications for policies regarding support on the use of 4IR technology and R&D.https://www.worldscientific.com/doi/10.1142/S2810943022500135Total factor productivityFourth Industrial Revolution technologydistributional effectsquantile regressionheterogeneity |
| spellingShingle | Minji Rhyu Sungwon Lee Distributional Effects of Fourth Industrial Revolution Technology on Productivity: Evidence from Korean Firm-level Data International Journal of Empirical Economics Total factor productivity Fourth Industrial Revolution technology distributional effects quantile regression heterogeneity |
| title | Distributional Effects of Fourth Industrial Revolution Technology on Productivity: Evidence from Korean Firm-level Data |
| title_full | Distributional Effects of Fourth Industrial Revolution Technology on Productivity: Evidence from Korean Firm-level Data |
| title_fullStr | Distributional Effects of Fourth Industrial Revolution Technology on Productivity: Evidence from Korean Firm-level Data |
| title_full_unstemmed | Distributional Effects of Fourth Industrial Revolution Technology on Productivity: Evidence from Korean Firm-level Data |
| title_short | Distributional Effects of Fourth Industrial Revolution Technology on Productivity: Evidence from Korean Firm-level Data |
| title_sort | distributional effects of fourth industrial revolution technology on productivity evidence from korean firm level data |
| topic | Total factor productivity Fourth Industrial Revolution technology distributional effects quantile regression heterogeneity |
| url | https://www.worldscientific.com/doi/10.1142/S2810943022500135 |
| work_keys_str_mv | AT minjirhyu distributionaleffectsoffourthindustrialrevolutiontechnologyonproductivityevidencefromkoreanfirmleveldata AT sungwonlee distributionaleffectsoffourthindustrialrevolutiontechnologyonproductivityevidencefromkoreanfirmleveldata |