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This is a Quantitative Study study.

October 18, 2025European journal of management, economics and business.

Does Internet Penetration Always Enhance Labor Productivity?

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Authors

SHSyed Laulak Haider AAAdnan Ali SKSarwar Shah Khan

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Overview

This analysis reveals an inverted U-shaped relationship between internet penetration and productivity gains, suggesting the role of R&D expenditure is critical.

Key Points

Internet penetration significantly boosts labor productivity at low and intermediate levels, but marginal improvements decline at high adoption rates.
Results from a sample of 60 countries show that R&D expenditure amplifies productivity benefits, while ICT service exports have a limited impact.
Fixed-effects models and robustness checks confirm findings across different contexts, with OECD countries experiencing modest returns compared to non-OECD economies.
The study highlights that merely expanding digital access is insufficient for long-term growth, underscoring the need for digital and innovation policy reforms.

Cite This Study

Haider et al. (2025) studied this question.

synapsesocial.com/papers/68f396388da44caaba02c80f https://doi.org/10.59324/ejmeb.2025.2(5).07

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October 18, 2025European journal of management, economics and business.

Does Internet Penetration Always Enhance Labor Productivity?

View Full Paper

Ask AI

Bookmark

Authors

SHSyed Laulak Haider AAAdnan Ali SKSarwar Shah Khan

Discussion

Member takes

Overview

This analysis reveals an inverted U-shaped relationship between internet penetration and productivity gains, suggesting the role of R&D expenditure is critical.

Key Points

Internet penetration significantly boosts labor productivity at low and intermediate levels, but marginal improvements decline at high adoption rates.
Results from a sample of 60 countries show that R&D expenditure amplifies productivity benefits, while ICT service exports have a limited impact.
Fixed-effects models and robustness checks confirm findings across different contexts, with OECD countries experiencing modest returns compared to non-OECD economies.
The study highlights that merely expanding digital access is insufficient for long-term growth, underscoring the need for digital and innovation policy reforms.

Cite This Study

Haider et al. (2025) studied this question.

synapsesocial.com/papers/68f396388da44caaba02c80f https://doi.org/10.59324/ejmeb.2025.2(5).07

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