Analysis of the economy digitalization impact on labor productivity in the Russian regions

Abstract

The digital economy is viewed as a tool for competitive recovery of the state and the quality of life of its citizens. The economic basis for improving the welfare of all citizens and the growth of the state's economy as a whole is an increase in the productivity of worker's. At the same time, one of the main factors of labor productivity growth is scientific and technical progress in general, as well as the introduction of digital technologies and computerization of labor in particular. This article is concerned with the research of the key factors of digitalization affecting the level of labor productivity in the regions of the Russian Federation, and assessing their significance. The methodological basis of the research is the econometric model building. Data on labor productivity and digital factors were considered for the regions of the Russian Federation. The control variables used were the number of employees in the region's economy and the share of depreciation of fixed assets, which reflected the impact on productivity of factors such as labor and capital. The development of digitalization in the last decade has led to an expansion of the range of indicators of the digital economy covered by statistical observation. Therefore, the models were built with the use of two sets of numerical indicators: in the period from 2011 to 2017 and from 2006 to 2017. Panel regression models with random and fixed effects were developed. The Hausman test showed significant differences in models with random and fixed effects. The significant positive impact of such factors was revealed as computerization of workplaces, use of server equipment, appliance of mobile subscriber devices and the broadband Internet connection to workplaces in organizations which require a high degree of automation. The level of labor productivity is practically not affected by the availability of own websites in organizations and the Internet connection to the most of their PCs.

Keywords

• digital economy
• digitalization
• labor productivity
• digital factors