|
on Information and Communication Technologies |
| By: | Martin Neil Baily; David M. Byrne; Aidan T. Kane; Paul E. Soto |
| Abstract: | With the advent of generative AI (genAI), the potential scope of artificial intelligence has increased dramatically, but the future effect of genAI on productivity remains uncertain. The effect of the technology on the innovation process is a crucial open question. Some inventions, such as the light bulb, temporarily raise productivity growth as adoption spreads, but the effect fades when the market is saturated; that is, the level of output per hour is permanently higher but the growth rate is not. In contrast, two types of technologies stand out as having longer-lived effects on productivity growth. First, there are technologies known as general-purpose technologies (GPTs). GPTs (1) are widely adopted, (2) spur abundant knock-on innovations (new goods and services, process efficiencies, and business reorganization), and (3) show continual improvement, refreshing this innovation cycle; the electric dynamo is an example. Second, there are inventions of methods of invention (IMIs). IMIs increase the efficiency of the research and development process via improvements to observation, analysis, communication, or organization; the compound microscope is an example. We show that GenAI has the characteristics of both a GPT and an IMI—an encouraging sign that genAI will raise the level of productivity. Even so, genAI’s contribution to productivity growth will depend on the speed with which that level is attained and, historically, the process for integrating revolutionary technologies into the economy is a protracted one. |
| Keywords: | Artificial Intelligence; Machine Learning; Productivity; Technological Growth |
| JEL: | C45 O31 O33 O40 |
| Date: | 2025–07–17 |
| URL: | https://d.repec.org/n?u=RePEc:fip:fedgfe:2025-53 |
| By: | Emilio Colombo; Luca Michele Portoghese; Patrizio Tirelli |
| Abstract: | What is the relationship between internet (broadband) connectivity shocks, markups, and fixed costs? We address the issue by exploiting a large dataset based on balance sheets of European firms. Broadband shocks raise sales, profits-to-sales ratios, fixed costs, and markups of firms that are large, are more efficient (high TFP) and already bear large fixed costs. For these firms, the shock therefore is expansionary, and firms exploit it to raise profit margins. Firms at the opposite tails of the distribution exhibit a substantially muted response. Our results hint that the shock lowers the cost of entering new markets, inducing some firms to bear larger fixed costs as part of their profit-maximizing strategy. |
| JEL: | L9 L16 L25 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:dis:wpaper:dis2505 |
| By: | Wei, Zhiwu; Lee, Neil; Iddawela, Yohan |
| Abstract: | Mobile internet has become a fundamental component of modern infrastructure. In this paper, we consider the impact of mobile internet connectivity on household wealth in the Philippines. We construct a granular measure of local mobile internet connectivity using comprehensive information on approximately 0.27 million geocoded cell towers, and identify causal impact through a novel instrumental variable based on proximity to submarine cable landing points. Our results suggest that mobile internet connectivity significantly increases household wealth, with effects that persist across education levels and are more pronounced in urban areas compared to rural ones. Combining individual survey datasets with Points-of-Interest data, we investigate mechanisms and demonstrate that improved connectivity stimulates activities in several key economic sectors that create employment opportunities. Additionally, mobile internet connectivity enhances individual educational outcomes and promotes female labor force participation, though predominantly in occasional or seasonal roles. |
| Keywords: | mobile internet; cell tower; wealth inequality; Philippines |
| JEL: | F14 J24 J63 L86 O33 |
| Date: | 2025–07 |
| URL: | https://d.repec.org/n?u=RePEc:ehl:lserod:128856 |
| By: | Angelica Bertucci; Emilio Colombo; Patrizio Tirelli |
| Abstract: | We investigate the response of posted job vacancies to increased broadband connectivity with a specific focus on their requirements for digital and cognitive skills, and distinguishing the effects between digital and non-digital occupations. We utilise a large dataset of online job advertisements, which encompasses approximately 55, 000 observations between 2013 and 2019. Broadband shocks unambiguously increase vacancy postings, but do not significantly impact their skill composition. By contrast, fast broadband shocks induce heterogeneous responses, where vacancies posted for non-digital occupations increase their digital/cognitive skill contents, whereas we obtain opposite results for digital occupations. |
| JEL: | J24 J63 L96 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:dis:wpaper:dis2506 |
| By: | Paolo E. Giordani; Alberto Petrucci; Alberto Franco Pozzolo |
| Abstract: | This paper investigates the impact of physical infrastructures on sectoral total factor productivity (TFP). In the first part, a neoclassical growth model with multiple productive sectors and public capital (in the form of infrastructures) uncovers a long-run relationship between infrastructures and sectoral TFP. In the second part, a panel-cointegration analysis evaluates the long-run impact of 4 distinct types of infrastructures-transport, energy, ICT, health-on the TFPs of 22 manufacturing sectors in a sample of 65 (developed and emerging) countries between 1995 and 2018. We find that infrastructures are a positive and significant determinant of sectoral TFPs. A panel error-correction model also confirms that causality runs from infrastructures to TFPs. These results are robust to further empirical analysis conducted on sub-samples segmented by several dimensions. Our findings can inform policy in designing targeted interventions and prioritizing investment. |
| Keywords: | Public infrastructures, Sectoral productivity, Total factor productivity (TFP), Panel cointegration, Trade-based TFP estimation, Panel error correction |
| JEL: | E22 H54 O47 O33 C33 |
| Date: | 2025–07–16 |
| URL: | https://d.repec.org/n?u=RePEc:csl:devewp:505 |
| By: | Shenle Pan (CGS i3 - Centre de Gestion Scientifique i3 - Mines Paris - PSL (École nationale supérieure des mines de Paris) - PSL - Université Paris Sciences et Lettres - I3 - Institut interdisciplinaire de l’innovation - CNRS - Centre National de la Recherche Scientifique, Mines Paris - PSL (École nationale supérieure des mines de Paris) - PSL - Université Paris Sciences et Lettres); Eric Ballot (CGS i3 - Centre de Gestion Scientifique i3 - Mines Paris - PSL (École nationale supérieure des mines de Paris) - PSL - Université Paris Sciences et Lettres - I3 - Institut interdisciplinaire de l’innovation - CNRS - Centre National de la Recherche Scientifique, Mines Paris - PSL (École nationale supérieure des mines de Paris) - PSL - Université Paris Sciences et Lettres); George Q Huang |
| Abstract: | Physical Internet (PI) is an revolutionary and rapidly advancing paradigm in the field of global logistics and supply chain management. Initially, PI was conceptualised as a framework that emulates the data packet transmission model of the digital internet, applying it to freight transport and logistics over the physical systems. Over time, the PI concept has significantly evolved, incorporating cutting-edge technologies such as the Internet of Things (IoT), Digital Twins, and Artificial Intelligence, and aligning with emerging economic models like platform economy, sharing economy, or circular economy, for example. As a result, PI has developed into a holistic paradigm aimed at streamlining and optimising logistics operations and supply chain management to enhance the sustainability and resilience. This chapter explores the potential of PI to transform operations management within logistics and supply chains, highlighting key pathways for its continued evolution and impact. Additionally, it outlines promising research avenues, where PI and emerging operations management practices can complement each other, notably in logistics coopetition, Cyber-Physical Internet, and Logistics-as-a-Service models. |
| Keywords: | Physical Internet, Operations Management, Resilience, Sustainability, Freight transport, Logistics, Supply chain, Cyber Physical Internet, Digitalisation, Smart Systems |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-05100066 |
| By: | Jun Cui |
| Abstract: | This study examines the relationship between AI-driven digital transformation and firm performance in Chinese industrial enterprises, with particular attention to the mediating role of green digital innovation and the moderating effects of human-AI collaboration. Using panel data from 6, 300 firm-year observations collected from CNRDS and CSMAR databases between 2015 and 2022, we employ multiple regression analysis and structural equation modeling to test our hypotheses. Our findings reveal that AI-driven digital transformation significantly enhances firm performance, with green digital innovation mediating this relationship. Furthermore, human-AI collaboration positively moderates both the direct relationship between digital transformation and firm performance and the mediating pathway through green digital innovation. The results provide valuable insights for management practice and policy formulation in the context of China's evolving industrial landscape and digital economy initiatives. This research contributes to the literature by integrating perspectives from technology management, environmental sustainability, and organizational theory to understand the complex interplay between technological adoption and business outcomes. |
| Date: | 2025–05 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2505.11558 |