RELATIONSHIP BETWEEN PRODUCTIVITY AND DIGITALIZATION WITH TOBIT MODEL BASED ON MALMQUIST INDEX

Abstract

Purpose: The sources of economic growth include capital, labor and the Solow surplus, dedicated to the study of Solow (1956). Solow surplus is the inexplicable part of growth with labor and capital and is expressed as technological advances. Solow surplus also means total factor productivity (TFP). In other words, economic growth is explained by TFP depending on technology from the past to the present. These days, digitalization is known to be the new technological revolution. In light of this concept, the study aims to demonstrate the impact of digitalization on TFP. Methodology: A TFP calculation based on the Malmquist index was made using labor, capital and gross domestic product data for 30 countries in the period 2012-2020. The Tobit Panel estimate was then used to determine the effect of digitalization on TFP in the relevant period. Findings: the results of the panel estimate are that digitalization has a significant and positive impact on TFP. The findings suggest that digitalization contributes to productivity. Originality: The most important feature that distinguishes research from studies in the literature is that a verification method is selected that uses real data. In addition, works covering many countries in literature is limited. The research has results from a multi-country perspective.

Keywords

• digitalization
• malmquist index
• tobit model
• productivity
• dijitalleşme
• malmquist endeksi
• tobit model
• verimlilik