The contribution of ICT to labour productivity in manufacturing firms in Cameroon: a re-examination of Solow's paradox

Abstract

This paper examines the determinants of firm labour productivity in Cameroon, with particular emphasis on the role of information and communication technologies (ICTs). The study uses an instrumental variables Tobit model applied to data from the Enterprise Survey on a sample of 361 Cameroonian firms. These data have the advantage of providing information on firm characteristics and productivity as well as on the different types of ICTs used by firms. The main results suggest that: 1) the use of a single ICTs tool (mobile money, website or email) has a positive but insignificant effect on workers' productivity; 2) the use of two or more of these tools (email-mobile money, email-website, mobile money-email-website) positively and significantly affects workers' productivity, by 5,881, 6,189 and 8,881 points respectively; 3) firm size, sector of activity as well as previous productivity positively and significantly affect labour productivity. This study argues for the use of several ICTs tools combined by firms to significantly increase their productivity.