The productivity paradox: A meta-analysis

The impact of information and communication technology (ICT) on economic performance has been the subject of academic research for several decades, and despite the remarkable and significant innovation in computer technology, usage, and investments, only a small growth in productivity has been observed. This observations has been coined the productivity paradox. This paper uses meta-analytical methods to examine publication bias and the size of ICT elasticity. The empirical part is based on a collection of more than 800 estimates of ICT payoff effects from more than 70 studies written in the last 20 years. The meta-analysis reveals a strong presence of publication bias within the ICT productivity literature and, using a mixed effect multilevel model, estimates the ICT elasticity to be only 0.3%, which is more than ten times smaller than what was reported by a previous meta-analysis from 10 years ago.