Source: www.frbsf.org
Topic: Investment Firm
Sort Desciption: stores have much larger levels of investment at the firm level. ..... Table 5: Descriptive Statistics for Firm Investment Matched Subset – 1992 and 1997 ...
Content Inside: IT Investment and Firm Performance in U.S. Retail Trade Mark E. Doms * Federal Reserve Bank of San Francisco Ron S. Jarmin ** Center for Economic Studies, U.S. Census Bureau Shawn D. Klimek*** Center for Economic Studies, U.S. Census Bureau November 2003 Abstract We examine the relationship between investments in information technology (IT) and two measures of retail firm performance: labor productivity and productivity growth over the 1992 to 1997 period. We use untapped firm and establishment micro data from the Censuses of Retail Trade and the Assets and Expenditures Survey. We show that large firms account for most retail IT investment, employment and establishment growth. We find evidence of a significant relationship between IT investment intensity and productivity growth. We found no evidence of a similar link between IT and growth in the number of establishments operated by retail firms. Keywords: information technology, retail, productivity, establishment growth JEL Classification: O31, L81 We want to thank Sheldon Ziman of the Census Bureaus Company Statistics Division for helping us acquire and understand data from the 1992 Asset and Expenditures survey. We also thank an anonymous referee and seminar participants at the Census Bureau, Penn State, and the OECD for helpful comments. All errors and omissions are ours. Any findings, conclusions or opinions expressed in this paper are those of the authors and do not necessarily reflect the views of the Census Bureau or the Federal Reserve System. ____________________ * Mark.Doms@sf.frb.org; Federal Reserve Bank of San Francisco, 101 Market Street, Mail Stop 1130, San Francisco, CA 94105 ** Ron.S.Jarmin@census.gov; U.S. Census Bureau, 4700 Silver Hill Road, Mail Stop 6300, Washington, DC 20233 *** Shawn.D.Klimek@census.gov; U.S. Census Bureau, 4700 Silver Hill Road, Mail Stop 6300, Washington, DC 20233 FRBSF Working Paper 2003-19 1 I. Introduction The recent slowdown notwithst ...
it investment and firm performance in u s retail trade