Abstract
This study is interested in evaluating whether Information Technology (IT) contributes to banks' profit performance in an emerging market as much as it does in the USA, and also in finding any reasonable explanations for the 'international productivity paradox'. We find that, using the traditional Cobb-Douglas linear model with Taiwanese data, IT does not contribute to banks' profits. However, in our modified model, which considers the size effect, the IT ratio is positively related to output. This is an important finding. Thus, the international productivity paradox could be solved by considering the size factor of a bank.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
