Measuring the contribution of Information and Communications Technology (ICT) to total output growth and labor productivity in the Philippines

• Main Authors: Lee, Fitzjavlad Janzen Sy Yuan Yuan, Lichengyao, Pamela Po, Longno, Ivy C., Perez, Kathleen Ortega
• Format: text
• Language: English
• Published: Animo Repository 2005
• Subjects: Information technology > Philippines; Communication and technology > Philippines; Labor productivity > Philippines; Economic development; Economics
• Online Access: https://animorepository.dlsu.edu.ph/etd_bachelors/14352
• Institution: De La Salle University

This paper attempts to estimate the contribution of ICT capital inputs to total output and productivity growth in the Philippines and discusses the challenges of using the available data and their impact on the choice of specific methodologies. This uses a well-established and extended growth accounting framework at a macro level over the 1990-2000 period. Given data limitations, the use of macro-level data is useful for the purpose at hand. Firstly, a private data source provided us with detailed breakdowns of capital. This helps mitigate the usual mismeasurement problems in obtaining capital stocks. Secondly, by avoiding the usual availability lags associated with the use of firm-level data, we can focus on a more recent period. The main findings may be summarized as follows: Contribution of ICT to output growth is roughly 11.88 percent, relatively low compared to the contribution of non ICT capital, which is 44.65 percent. Labor productivity growth rate is 3.16 percent. ICT capital deepening accounts for 2.29 percent of growth in labor productivity, substantially lower than the 44.30 percent contribution of non ICT capital deepening.