Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/54664
Year of Publication: 
2011
Citation: 
[Journal:] EIB Papers [ISSN:] 0257-7755 [Volume:] 16 [Issue:] 2 [Publisher:] European Investment Bank (EIB) [Place:] Luxembourg [Year:] 2011 [Pages:] 8-28
Publisher: 
European Investment Bank (EIB), Luxembourg
Abstract: 
ICT capital is an important driver of productivity growth. Using data from the EUKLEMS growth accounts, we show that ICT has made smaller contributions to labour productivity growth in the EU-15 than in the US, both at the macro level and at the level of individual sectors. At the same time, progress in productive efficiency - as measured by total factor productivity (TFP) growth - sharply declined in Europe and has remained weak since the mid-1990s whereas the US has seen acceleration in TFP. The near-stagnant TFP in market services in the EU-15 is particularly worrying. In both the EU-15 and the US, the growth contributions from ICT are found to be smaller than those from TFP. However, our empirical analysis suggests that the full effect of ICT capital on productivity is larger than what the growth accounts suggest because many ICT benefits occur with a delay.
Document Type: 
Article

Files in This Item:
File
Size





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.