The impact of ICT on labor productivity in the EU

The paper is concerned with investigating relationships between labor productivity and information and communication technology (ICT) components such as the use of enterprise resource planning (ERP), e-commerce and customer relationship management (CRM) software, and the number of ICT specialists at the country level. The proposed approach uses a neoclassical framework of growth accounting and a translog production function to examine the impact of ICT components on labor productivity in the transition and developed economies of the European Union (EU). Our findings show the positive and significant influence of selected ICT components on labor productivity in EU countries. Moreover, the results indicate that the impact of ERP, e-commerce and CRM software on labor productivity is greater in transition economies than in developed economies of the EU.