Literature Critique on given journal artical

Article Critique : The Productivity Pay-off from Effective Allocation of IT and Non-IT Labor , by Stephan Kudyba

Synopsis

The increase in the United States productivity trends over the years has attracted the attention of economists and analysts alike . Their narrowed down studies have pointed that the emergence of information technology (IT ) as being responsible for this productivity increase This article uses firm level data collected between 1995 and 1997 to discuss the effects of IT on firms overall output . The article uses Cobb-Douglas production function to analyze the changes in productivity

relative to various degrees of intensity of IT employed by firms

Introduction

Despite a decline in economic growth in the United States in the period between 1995 and 2000 there has been a sustained increase in productivity . Empirical research studies have associated this trend with intensive investments in IT . As it is with many other similar research studies investigating the impacts of IT on firm level productivity Kudyba 's article fully acknowledges that , intensive investment in IT leads to increased productivity . She uses firm level data to prove that indeed intensive investment in IT can boost a firms productivity levels however , she is quick to caution that mere investment in new IT cannot yield fruits if appropriate integration efforts will not be made to link current production structures with the new ones . The purpose of this article critique is to critically analyze Kudyba 's work by looking at the research questions , research design and methodology , statistical analysis and limitations of...