Investigating the Effects of Information Technology Investment on Productivity in the Chinese Electronics Industry

The importance of information technology (IT) has been emphasized in developing countries recently. Despite the importance of the topic area of the productivity of IT in developing countries, the literature to date is relatively sparse. The findings of almost all these studies are based on data collected in developed countries. Few studies have been conducted to validate these results and to see if they are still applicable in developing countries. This study tries to investigate the effects of IT investment on productivity in the electronics industry of China, which is a representative developing country, with production function model. The results show that there is a positive impact of IT investment on productivity in China similar to previous studies in developed countries.