Abstract
The adoption of information and communication technology (ICT) can have far-reaching effects on the nature of production technologies. Because ICT adoption is incomplete, especially in developing countries, different groups of firms will have different production technologies. We estimate a latent class stochastic frontier model, which allows us to test for the existence of multiple production technologies across firms and consider the associated implications for efficiency measures. We use a unique data set of Chilean retailers, which includes detailed information on ICT adoption. We find three distinct production technologies. The probability of membership in a more productive group is positively related to ICT use.
Original language | English |
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Pages (from-to) | 539-555 |
Number of pages | 17 |
Journal | Oxford Bulletin of Economics and Statistics |
Volume | 73 |
Issue number | 4 |
DOIs | |
Publication status | Published - Aug-2011 |
Keywords
- INFORMATION TECHNOLOGY
- SECTOR
- IMPACT
- MODEL