This paper examines the relationship between computer network use and firms’ productivity performance, using micro-data of the United States and Japan. To our knowledge, this is the first comparative analysis using firm-level data for the manufacturing sector of both countries. We find that...

A positive relationship between information technology (IT), productivity, and growth has been established at the aggregate level. What remain unclear are the mechanisms through which the effect operates at the level of specific businesses. Statistical agencies have developed indicators of...