ICT-specific technological progress in the United Kingdom

Bakhshi, Hasan; Larsen, Jens

doi:10.1016/j.jmacro.2004.03.004

Cited by 49 publications

(19 citation statements)

References 22 publications

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“…The two-sector model with faster technical progress in investment goods was revived by Whelan (2001) and applied by Martin (2001) to study the U.S. economy and by Cette et al (2005) to compare France and the U.S. It was also employed by Bakhshi and Larsen (2005) to analyse the impact of macroeconomic shocks in the U.K. context. Oliner and Sichel (2002) employ the steady state of a five-sector model for some of their projections of the U.S. economy.…”

Section: Making Projections With the One-sector Growth Modelmentioning

confidence: 99%

Long term implications of the ICT revolution: Applying the lessons of growth theory and growth accounting

Oulton

2012

Economic Modelling

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How big a boost to long run growth can countries expect from the ICT revolution? I use the results of growth accounting and the insights from a two-sector growth model to answer this question. The use of a two-sector rather than a one-sector model is required because of the very rapid rate at which the prices of ICT products have fallen in the past and are expected to fall in the future. According to the two-sector model, the main boost to growth comes from ICT use, not ICT production. Even a country which has zero ICT production can benefit via improving terms of trade. In the long run, the falling relative price of ICT products boosts the growth of GDP and consumption by inducing faster accumulation of ICT capital. I quantify this effect on the long run growth rate of 15 European and 4 non-European countries, using data from the EU KLEMS database. The ICT intensity of production (the ICT income share) is much lower in many European countries than it is in the United States or Sweden. Nevertheless the contribution to the long run growth of labour productivity stemming from even the current levels of ICT intensity is substantial: about half a percent per annum on average in the countries studied here. Eventually, the ICT revolution may diffuse more widely so ICT intensity may reach at least the same level as currently in the U.S. or Sweden, which would add a further 0.2 percentage points per annum to long run growth.

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Section: Making Projections With the One-sector Growth Modelmentioning

confidence: 99%

Long term implications of the ICT revolution: Applying the lessons of growth theory and growth accounting

Oulton

2012

Economic Modelling

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“…obtain for the period 1954-1990 that neutral technological change accounts for 42% of total productivity growth, while the remaining 58% can be attributed to specific technological change. Using a similar analysis for the UK economy, Bakhshi and Larsen (2005) find that specific technological change accounts for around 20-30% of total labor productivity growth for 1976-1998. Both these papers consider that capital is disaggregated into ICT and non-ICT assets, where specific technological progress is motivated solely by ICT capital.…”

Section: Introductionmentioning

confidence: 94%

“…Papers by Greenwood et al ( , 2000, Kiley (2001), Pakko (2005) are all calibrated for the US economy; Carlaw and Kosempel (2004) for the Canadian economy; Bakhshi and Larsen (2005) for the UK economy and Martí-nez et al (2008) for the Spanish economy, provide examples of this methodology applied to technological changes. obtain for the period 1954-1990 that neutral technological change accounts for 42% of total productivity growth, while the remaining 58% can be attributed to specific technological change.…”

Section: Introductionmentioning

confidence: 99%

ICT-specific technological change and productivity growth in the US: 1980–2004

Martínez

Rodríguez

Torres

2010

Information Economics and Policy

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a b s t r a c tThis paper studies the impact of information and communication technologies (ICT) on US economic growth using a dynamic general equilibrium approach. A production function with six different capital inputs is used, three of them corresponding to ICT assets and the other three to non-ICT assets. The technological change embedded in hardware equipment is found to be the main leading non-neutral force in US productivity growth, accounting for about one quarter of total growth during the period 1980-2004. As a whole, ICTspecific technological change accounts for about 35% of total growth in labor productivity.

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“…In fact, a number of studies have already found slowed TFP growth, which they link to an increase in the rate of capital-embodied technical change resulting from ICT adoption in the U.S. (Greenwood and Yorukoglu 1997; see also Carlaw and Kosempel 2004, for Canada;Bakhshi and Larsen 2005, for UK) It should also be considered that as different types of capital are added to the production function in lieu of a single aggregated one, the magnitude of the downturn appears more relevant, as shown by .…”

Section: Aggregate Impactmentioning

confidence: 99%