Internet and Manufacturing Value Added

Authors

  • Omas Bulan Samosir Universitas Indonesia
  • Wilson Rajagukguk Universitas Kristen Indonesia
  • Perak Samosir Institut Teknologi Indonesia
  • Josia Rajagukguk Universitas Indonesia
  • Hasiana Emanuel Rajagukguk Universitas Indonesia

DOI:

https://doi.org/10.55927/jfbd.v4i4.530

Keywords:

Manufacturing Value Added, Internet, ICT Import, World Bank, World

Abstract

Manufacturing value added (MVA) is a crucial indicator of a country's economic health and growth potential, and as a sector generating significant global and domestic value, supportive policies are vital for overall economic development. This study analyzed the impact of the internet and several policy-relevant variables on MVA (as a percentage of GDP) using global World Bank data from 2025 via Multinomial Linear Regression. The analysis found that three independent variables Individuals using the Internet (% of population), Employers, female (% of female employment), and ICT goods imports (% of total goods imports) were all significantly and positively associated with MVA. Specifically, each unit increase in Internet use corresponded to a 0.001% increase in MVA, while a 1% increase in female employers resulted in a 0.289% increase, and a 1% rise in ICT goods imports led to a 0.338% increase in GDP manufacturing value added.

References

Amighini, A. (2005). China in the International Fragmentation of Production: Evidence from the ICT Industry. European Journal of Comparative Economics, 2(2), 203–219. http://eaces.liuc.it/18242979200502/182429792005020203.pdf.

Bertay, A. C., Dordevic, L., & Sever, C. (2020). Gender Inequality and Economic Growth: Evidence from Industry-Level Data. IMF Working Papers, 2020(119). https://doi.org/10.5089/9781513546278.001.A001.

Blecker, T. (2006). Internet Technologies in Factory Automation (pp. 678–683). IGI Global. https://doi.org/10.4018/978-1-59140-799-7.CH109.

Bojnec, Š., & Ferto, I. (2015). Impact of the Internet on Manufacturing Trade. Journal of Computer Information Systems, 50, 124–132. https://www.tandfonline.com/doi/abs/10.1080/08874417.2009.11645369.

Bojnec, S., & Fertö, I. (n.d.). Impact of the Internet on Manufacturing Trade. https://doi.org/10.1080/08874417.2009.11645369.

Bui, M. T. T., & Long, T. Q. (2021). Women’s Economic Empowerment in Vietnam: Performance and Constraints of Female-Led Manufacturing SMEs. 14(6), 255. https://doi.org/10.3390/JRFM14060255.

Chatterjee, N., & Chatterjee, T. (2021). Effects of Labor Productivity and Growth of Manufacturing Sector on Overall Growth of the Nation – A Panel Data Analysis of the Major Economies. Emerald Publishing Limited. https://doi.org/10.1108/978-1-80071-094-820211002.

Castiglione, C., Infante, D., & Smirnova, J. (2020). Do female managers affect productivity? Evidence from Italian manufacturing firms. International Journal of Finance & Economics. https://doi.org/10.1002/IJFE.2268.

Dai, X. (2021). Impact of “Internet plus” on manufacturing upgrading Based on evidence from Chinese manufacturing. 235, 03045. https://doi.org/10.1051/E3SCONF/202123503045.

Fazli Md Fauadi, M. H., Muhamad Damanhuri, A. A., Hambali, R. H., Mohamed Noor, A. Z., & Anuar, N. I. (2020). Recent applications of internet of things (iot) in manufacturing sector – a review. International Journal of Scientific & Technology Research, 9(9), 334–339. https://www.ijstr.org/final-print/sep2020/Recent-Applications-Of-Internet-Of-Things-iot-In-Manufacturing-Sector-A-Review.pdf.

Ferraz, R. (2024). Manufacturing production as a source of growth: the case of Portugal. Journal of Economic Structures, 13(1). https://doi.org/10.1186/s40008-024-00339-w.

Gisela, G., Husnatarina, F., Oktavia, R., Rapel, R., Yuni, S., & Christian, I. (2024). Pengaruh Komite Audit Perempuan, Pengalaman Kerja dan Pendidikan Akuntansi & Keuangan Terhadap Nilai Perusahaan Manufaktur. Moneter. https://doi.org/10.61132/moneter.v2i4.935.

Gozen, R., Hornbeck, R., Humlum, A., & Rotemberg, M. (2024). Historical Differences in Female-Owned Manufacturing Establishments: The United States, 1850-1880.

Jena, N. (2012). Women Entrepreneurship and Employment in Micro and Small Manufacturing Enterprises. 39(4), 1–20. https://doi.org/10.1177/0970846420120401.

Li, D. (2005). E-Supply Chain Management (Vol. 16). WIT Press. https://doi.org/10.2495/978-1-85312-998-8/10.

Lin, H.-C., Hsu, S.-H., Liou, R.-W., & Chang, C.-C. (2016). A value-added analysis of trade in Taiwan and Korea’s ICT industries. Journal of Korea Trade, 20(1), 47–73. https://doi.org/10.1108/JKT-03-2016-004.

Nguyen, H. M. (2023). Impact of Internet use on industrial value added: evidence from Southeast Asian countries. Journal of International Economics and Management. https://doi.org/10.38203/jiem.023.3.0073.

Rajagukguk, W., (2022). The demographic and economic features: the nexus with internet use, HELIYON, https://doi.org/10.1016/j.heliyon..e10686.

Szirmai, A., Verspagen, B., & Verspagen, B. (2011). Manufacturing and Economic Growth in Developing Countries, 1950-2005. Research Papers in Economics. https://ideas.repec.org/p/unm/unumer/2011069.html.

Wang, A. Y.-M. (2022). The Impact of Manufacturing Sector on Economic Growth in Nigeria. https://doi.org/10.21203/rs.3.rs-2203096/v1.

Wen, J., & Deng, Z. (2023). Internet development, resource allocation and total factor productivity: Empirical evidence from China’s listed manufacturing enterprises. Applied Economics, 1–12. https://doi.org/10.1080/00036846.2023.2188167.

World Bank (2025). World Development Indicators.

Yoon, S.-C. (2019). The Impact of ICT Goods Imports on Economic Growth: Evidence from Asia-Pacific Countries. Journal of Korea Trade, 23(7), 1–12. https://doi.org/10.35611/JKT.2019.23.7.1

Zhi, G. (2021). Research on Internet Development and the Value-added Path of Manufacturing Value. 235, 03061. https://doi.org/10.1051/E3SCONF/202123503061.

Zhong, R. Y., & Ge, W. (2018). Internet of things enabled manufacturing: a review. International Journal of Agile Systems and Management, 11(2), 126. https://doi.org/10.1504/IJASM.2018.092545.

Published

2026-01-03