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Information technology investment and firm performance in US retail trade

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We examine the relationship between investments in information technology (IT) and retail firm performance. We use untapped firm and establishment micro data from the Censuses of Retail Trade and the Assets and Expenditures Survey. We show that large firms account for most retail IT investment, employment, and establishment growth. We find evidence of a significant relationship between IT investment intensity and productivity growth.*

E-mail: mark.doms@sf.frb.org†

E-mail: ron.s.jarmin@census.gov

Keywords: Establishment growth; Information technology; Productivity; Retail

Document Type: Research Article

DOI: http://dx.doi.org/10.1080/1043859042000201911

Affiliations: 1: Federal Reserve Bank of San Francisco 101 Market Street, Mail Stop 1130 San Francisco CA 94105 USA 2: US Census Bureau 4700 Silver Hill Road, Mail Stop 6300 Washington DC 20233 USA

Publication date: October 1, 2004

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