Impact of Digital Transformation on Labor Productivity Growth in the Manufacturing Industry in Russia

Abstract

AbstractModern information and communication technologies are the essential factors in the transformation of the industrial sector of the Russian economy. The purpose of the article is to assess the impact of digital change on labor productivity in the industrial regions of Russia. We hypothesize that in the new reality the digital transformation of industry is becoming an independent factor in labor productivity growth. Scientific works of Russian and foreign researchers in the field of the digital economy, the efficiency of industrial production, factors in labor productivity growth constitute the methodological basis of the study. The authors use the methods of structural-logical and statistical analysis, as well as linear regression modelling. The information base included data from industrial and regional statistics, indicators of government programs and sectoral strategies. The paper reviews modern research in labor productivity and total factor productivity and determines the differentiation of regions and federal districts of Russia in terms of labor productivity. Furthermore, the authors clarify the set of indicators characterizing the total factor productivity, analyze indicators of industrial regions’ digital development and digital expansion. Finally, the study establishes a statistically significant relationship between the most critical hands of industry digitalization in the regions and the level of labor productivity. The study shows that the high rates of digital transformation of industry in modern conditions can solve such fundamental problems as increasing labor productivity and improving the population’s well-being.KeywordsDigital transformationLabor productivityIndustrial regions