IMPACT OF INFORMATION AND COMMUNICATION TECHNOLOGY (ICT) ON LABOR PRODUCTIVITY OF PALESTINIAN INDUSTRIAL SECTOR
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Date
2022-10-16
Authors
Assi Sobhi Utt
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Abstract
Information and Communication Technology (ICT), like software and hardware applications, positively affect productivity. These ICT and Software applications lower transaction costs, create job opportunities, promote organizational efficiency, and improve product quality. They also help firms to store, analyze, and communicate effectively with other organizations and businesses in the field. Therefore, researchers, firms, and investors worldwide are increasingly interested in this subject. The researcher has sought to investigate the effect of ICT on Palestinian laborers' productivity in the industrial sector. The researcher has used cross-sectional data from the Gaza Strip and the West Bank and data from the Palestinian Central Bureau of Statistics. In the study sample, all manufacturing firms in Palestine between 2013- 2018 processed data and companies that did not have study variables was excluded from the study. To accomplish the goals of this study, the researcher has used ICT indicators, including computer consulting services, databases, R&D (Research and Development), and computer program availability. The main promising finding is that increasing the investment in computer consulting services and programs increases labor productivity. However, the study findings reveal that there is no impact of R&D and databases on labor productivity. It has also found that laborers of higher wages are more productive. The West Bank labor force was found to be more productive than its counterpart in the Gaza Strip. One surprising finding, was regarding the firm size, which has no effect on labor productivity. Based on the results, the researcher strongly recommends that firms invest in ICT to increase productivity and profits.
Keywords: Labor productivity, Information and communication technology, industrial sector, investment in technology.
Description
This Thesis is Submitted in Partial Fulfillment of the Requirements for the Degree of Master of Tax Disputes, Faculty of Graduate Studies, An-Najah National University, Nablus, Palestine.
Publisher: An-Najah national University