The Impact of ICT Use
in Manufacturing Firms
in Thailand
Joint UNCTAD – Thailand NSO Project
by Ruamporn Sirirattrakul
National Statistical Office ,Thailand
Workshop on Information Society Statistics : Core ICT Indicators, 6-8 Nov. 2007 , Bangkok
Outline
„
„
„
„
Research Methodology and Data Sets
Some results
Lessons learned, experience gained from
the joint project
Recommendation
Research Methodology
The research based on 2 data sets :
„
„
2007 ICT Business Survey(70,800 sample
firms) for overview of ICT uptake by firms
2003 Manufacturing Survey (8,862 sample
firms) for productivity analysis using
econometric techniques
Study firms with at least 1 employee
Empirical models
„
Cobb Douglas framework
⎛M ⎞
⎛K⎞
⎛ sales ⎞
ln ⎜
⎟ = β 0 + β 1 ICTVariabl e + β 2 ln ⎜ ⎟ + β 3 ln ⎜ ⎟ + β 4 ln( L ) + β 5 Multi _ unit +
⎝ L ⎠
⎝L⎠
⎝ L ⎠
+ β 6 Foreign _ capital + β h region + β i Industry + u
where i takes values between 1 and 14 and h between 1 and 6.
„
Labour productivity measured by value of sales per employee
„
K = Capital , M = Spending on materials ,
„
„
„
L = Labor
ICT variables comprise of presence of computers , access to internet and
presence of website
including intensity of computer ; proportion of employee using
computers and number of computers per employee
Multi_unit
or single unit )
Foreign_capital
= Form of economic organization (head offices ,branches
= Foreign capital participation
Percentage of Firms by Economic Activities
83.6 %
13.6 %
0.2 %
1.0 %
Trade & Services
Manufacturing
Construction
Hospital
1.6 %
Land Transport
Percentage of Firms by size
of Firm and Industry : 2007
Percentage
99.4
98.8
100
95
90
85
80
75
70
65
60
55
50
45
40
35
30
25
20
15
10
5
0
96.0
97.8
95.5
55.2
27.4
0.3
Total
0.9
0.1
Trade & Services
0.5
1.2
Manufacturing
1 - 50 Persons
2.8
0.7
Construction
3.8
0.4
Land Transport
51 - 200 Persons
17.4
1.8
Hospital
Over 200 Persons
Industry
Percentage of Firms with presence
of computer :2007
Percentage
99.1
97.4
100
99.2
80
60
49.4
51.9
40
20
0
20.5
20.6 18.7 22.0
2004
20.3
20.5 18.1
57.1
54.8
25.0
19.9
22.8
20.5 20.2
2005
Total
Manufacturing
Land Transport and Activities of Travel Agencies
21.3
21.7 19.2
2006
Trade & Services
Construction
Hospital
2007
32.0
Year
Percentage of Firms with Access to Internet :2007
Percentage
100
90.9
92.6
92.3
80
60
40
29.3
15.4
9.0 8.5
9.6
20
0
2004
33.1
17.6
10.7 10.2
10.1
2005
36.6
16.9
11.8
10.6 11.3
2006
Total
Trade & Services
Manufacturing
Land Transport and Activities of Travel Agencies
Construction
Hospital
43.5
27.0
12.1
12.9
12.6
2007
Year
Percentage of Firms by presence of Web site
and purposes of using web site : 2007
- Advertisement of products
and firms 84.4%
- Inquiry / Contact facility 67.5%
No
95.7%
Yes Purposes of using
4.3%
- Receiving purchased order 16.3%
- Providing after sales services 8.9%
- Online payment 2.4 %
- Internal Information networking
5.7%
Note : An Establishment could answer more than 1 purpose
Some results of ICT impact
on productivity
„
Computer Use ,Internet access and
Web presence in manufacturing firms
are associated with significantly higher
sales per employee (labor productivity)
- computer presence : 14.6 %
- internet access
: 3.7 %
additional from computers
- web presence
: 3.8 %
additional from computers and internet
Some results
„
Intensity of computer use was reflected
in higher productivity gains
- 3.6% higher labor productivity
with 10% increase in the share of
employees using computers
- 4 % higher labor productivity with
10 % increase in no. of computers per
employee
Lessons learned, experience
gained from the joint project
1. Learning of applying Econometrics for ICT data
analysis and using software SPSS from training
2. Learning by doing own in-depth data analysis in parallel
with UNCTAD (as best practice) who provide technical
assistance via email
- conceptual frame work , empirical modeling and
model selection techniques
- solving heteroskedasticity and checking robustness
- data analysis and interpretation
Lessons learned, experience
gained from the exercise
-
-
-
Gain more skill in processing micro firm
data and applying econometric in data
analysis
Gain more techniques in data
manipulation
Gain in motivation for using Eviews
software in running regression by our
own
Recommendation
„
„
An appropriate software for econometric
analysis should be selected for learning and
practicing at the beginning ,ie. Eviews
Technical assistance provided via long
distance (email) is suitable for whom quite
skills in statistics , data processing , fare
English and regular communication.
THANK YOU
Sawaddee Ka