Abstract/Description

Productivity growth has remained slow in the Asian countries. The feasible option to accelerate productivity growth for a country is not only tangible capital (labor and capital) but also intangible capital such as innovation and digitalization. The study examines the role of innovation and digitalization on output productivity for four Asian countries: Bangladesh, China, India, and Pakistan using data from 1990-2022. Based on the findings of the unit root test, the study used the Autoregressive Distributed Lag (ARDL) technique and Kao test to explore the long-run relationship among the variables. The long-run results show that innovation and digitalization have a positive and significant impact on productivity in the selected countries. Productivity is also significantly impacted by human capital, foreign direct investment, and trade openness. The panel ARDL result also shows that innovation, digitalization, human capital, trade openness, and foreign direct investment, effects productivity in the long run significantly. It is recommended that investments should be encouraged in digital infrastructure, inventions, and innovations in different sectors of the economy, such as R&D activities, fostering collaboration between industries and academia, and technological advancements. These countries should also invest in education and technical and vocational training to improve labor productivity and efficiency.

Keywords

Productivity, Innovation, Digitalization, Human capital, Panel ARDL

Location

MAV 2 room, Adamjee building

Session Theme

Innovation, Productivity and Competitiveness

Session Type

Parallel Technical Session

Session Chair

Harun Ucak, Alanya Alaaddin Keykubat University

Session Discussant

Ateeb Shah, Institute of Business Administration ; Salman Khalid, Institute of Business Administration

Start Date

10-12-2024 3:15 PM

End Date

10-12-2024 5:15 PM

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Dec 10th, 3:15 PM Dec 10th, 5:15 PM

Analyzing the role of innovation and digitalization in accelerating productivity: A comparative analysis of four Asian countries

MAV 2 room, Adamjee building

Productivity growth has remained slow in the Asian countries. The feasible option to accelerate productivity growth for a country is not only tangible capital (labor and capital) but also intangible capital such as innovation and digitalization. The study examines the role of innovation and digitalization on output productivity for four Asian countries: Bangladesh, China, India, and Pakistan using data from 1990-2022. Based on the findings of the unit root test, the study used the Autoregressive Distributed Lag (ARDL) technique and Kao test to explore the long-run relationship among the variables. The long-run results show that innovation and digitalization have a positive and significant impact on productivity in the selected countries. Productivity is also significantly impacted by human capital, foreign direct investment, and trade openness. The panel ARDL result also shows that innovation, digitalization, human capital, trade openness, and foreign direct investment, effects productivity in the long run significantly. It is recommended that investments should be encouraged in digital infrastructure, inventions, and innovations in different sectors of the economy, such as R&D activities, fostering collaboration between industries and academia, and technological advancements. These countries should also invest in education and technical and vocational training to improve labor productivity and efficiency.