Impact of International Information Technology Transfer on National Productivity

Information Systems Research, Vol. 18, No. 1, pp. 86-102, 2007

Posted: 9 Feb 2008

See all articles by Jungsoo Park

Jungsoo Park

Sogang University

Seung Kyoon Shin

The University of Rhode Island

G. L. Sanders

SUNY at Buffalo - School of Management; State University of New York (SUNY) - Management Science and Systems

Abstract

Researchers have widely postulated that the adoption of information technology (IT) products enhances global competitiveness and production efficiency as successful technological innovation replaces and improves traditional inputs and modes of production. This study suggests that when IT products are traded across borders, IT investment in an economy has a positive influence on the productivity of its import partner country. We provide empirical evidence for the positive effect of global IT diffusion on productivity through international trading of IT products. The results show a positive effect of foreign IT transfer on the recipient country's productivity. In addition, we find that the effect of transferred IT is only significant when the source country is an IT-intensive or hi-tech export country. The results and implications are robust even controlling for other important factors such as openness, innovative capacity, and IT infrastructure in addition to the transferred IT. Finally, a panel cointegration test - a recently developed advanced econometric method - is used to address the common problems of spurious relations that arise in regressions with nonstationary time-series data.

Keywords: information technology, knowledge transfer, openness, innovative capacity, IT infrastructure, national productivity, international IT diffusion

Suggested Citation

Park, Jungsoo and Shin, Seung Kyoon and Sanders, G. Lawrence, Impact of International Information Technology Transfer on National Productivity. Information Systems Research, Vol. 18, No. 1, pp. 86-102, 2007. Available at SSRN: https://ssrn.com/abstract=1091545

Jungsoo Park (Contact Author)

Sogang University ( email )

35 Baekbeom-ro
Seoul, 121-742

HOME PAGE: http://hompi.sogang.ac.kr/parkjs

Seung Kyoon Shin

The University of Rhode Island ( email )

7 Lippitt Road
Kingston, RI 02881
United States
401-874-5543 (Phone)

G. Lawrence Sanders

SUNY at Buffalo - School of Management ( email )

Jacobs Management Center
Buffalo, NY 14222
United States

State University of New York (SUNY) - Management Science and Systems ( email )

United States

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