The study aims to analyse the employment spillover effects
of ICT in the non-ICT industries. For the empirical analysis, the Pooled Mean
Group (PMG) model was used to account for the short- and long-run effects of
ICT investment on the employment growth of agro-processing industries (i.e.
non-ICT industries). The analyses were conducted in a multivariate setting to
establish whether labour productivity and output growth effects of ICT
investment would spill over to employment growth in those agro-processing
industries that invested in ICT more intensively. The findings showed that the
labour productivity and output growth effects of ICT investment would be
realised in the long run and such effects would spill over to employment growth
of the industry group that invested more in ICT. Two implications can be
derived from these findings. First, the effects of ICT on employment growth
differ according to the intensity of ICT investment, such that employment
spillover effects of ICT would be realised by the agro-processing industries that
invested in ICT more intensively. Second, such effects would be realised in the
long run, suggesting that it would take longer for the returns on ICT
investment to be realised. Therefore, policymakers should prioritise the
agro-processing industries that are more ICT-intensive for ICT-related
investments. Such investments should be undertaken over the long term, as the
returns on ICT investment take time to materialise.
Author(s) Details
Mapula Hildah
Lefophane
Centre for Rural Community Empowerment, University of Limpopo, Cnr R71 Road
and University Street, Polokwane, South Africa.
Please see the link:- https://doi.org/10.9734/bpi/bmerp/v1/7403C
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