Impact Of The Adoption Of Information And Communication Technologies On Firm Efficiency In The Tunisian Manufacturing Sector

Abstract

This paper aims at measuring the impact of information and communication technologies (ICT) use on the efficiency of the Tunisian manufacturing sector, at the firm level within a simple theoretical framework. We use a firm-level panel data for the manufacturing sector in Tunisia to investigate whether adoption of ICT influences efficiency in factors use. The analysis is conducted through the use of a parametric method to measure technical efficiency. We estimate a stochastic production frontier and the relationship aimed to explain technical efficiency differentials in a single stage as suggested by Battese and Coelli (1995). The results confirm the presence of positive returns to ICT capital. We find that the impact of ICT on efficiency is strong. Our results also suggest that it is important to carefully control for human capital related characteristics of employment when studying the effect of ICT. The evidence shows that achieving benefits from investment in ICT requires complementary investments and changes in human capital. This means that the combined use of ICT and human capital in a firm would enhance its efficiency beyond the direct effects of these factors taken alone.