Information and Communication Technology Spillovers and Labor Productivity: An Exploratory Note based on Iranian Regions

This brief study builds on the literature on information and communications technology (ICT) and labor productivity by empirically showing the importance of ICT spillovers across regions. We begin by developing a model of regional labor productivity and discuss where ICT spillovers can play a role. Using a provincial-level dataset for Iran from 2001-2011, we nd that ICT spillovers exist and have signicant eects on labor productivity. Our estimates suggest that a one percent increase in ICT investment in one province leads to a 0.66% increase in labor productivity in all other provinces.