ICT Adoption and Heterogeneity in Production Technologies: Evidence for Chilean Retailers

Gaaitzen J. De Vries*, Michael Koetter

*Corresponding author for this work

Research output: Contribution to journalArticleAcademicpeer-review

8 Citations (Scopus)

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 languageEnglish
Pages (from-to)539-555
Number of pages17
JournalOxford Bulletin of Economics and Statistics
Volume73
Issue number4
DOIs
Publication statusPublished - Aug-2011

Keywords

  • INFORMATION TECHNOLOGY
  • SECTOR
  • IMPACT
  • MODEL

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