Analysis of the impact of economy digitalization on labor productivity in Russia

Digital economy: theory and practice

Digital economy is viewed as a tool to provide competitiveness of the state and high standards of living. The economic basis for improving the welfare of all citizens and the growth of the state’s economy as a whole is an increase in labor productivity. At the same time, one of the main factors of labor productivity growth is scientific and technical progress in general, as well as the introduction of digital technologies and computerization of labor in particular. This article is concerned with the research of the key factors of digitalization affecting the level of labor productivity in the regions of the Russian Federation, and assessing their significance. The methodological basis of the research is the econometric model building. Data on labor productivity and digital factors were considered for the regions of the Russian Federation. The control variables used were the number of employees in the regional economy and the share of depreciation of fixed assets, which reflected the impact on productivity of factors such as labor and capital. The development of digitalization in the last
decade has led to an expansion of the range of indicators of the digital economy covered by statistical observation. Therefore, the models were built with the use of two sets of numerical indicators: in the period from 2011 to 2017 and from 2006 to 2017. Panel regression models with random and fixed effects were developed. The Hausman specification test showed significant differences in models with random and fixed effects. We revealed a significant positive impact of such factors as computerization of workplaces, use of server equipment, appliance of mobile subscriber devices and the broadband Internet connection to workplaces in organizations which require a high degree of automation. Whether or not the companies had a website or the majority of their PCs had Internet connection posed practically no impact on the lev el of labor productivity.