The Case of the Missing Productivity Growth, or Does Information Technology Explain Why Productivity Accelerated in the United States but Not in the United Kingdom?

Basu, Susanto; Fernald, John G.; Oulton, Nicholas; Srinivasan, Sylaja

doi:10.1086/ma.18.3585244

Cited by 160 publications

(106 citation statements)

References 61 publications

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“…However, ICT investment could even be associated with initial declines in TFP as reorganization and learning require resources (Basu et al, 2003). This is also consistent with David's (1990) -delay hypothesis‖ or -learning hypothesis‖, reflecting the time taken to learn to use and apply new technologies.…”

supporting

confidence: 75%

“…If the diffusion of ICTs leads to subsequent complementary innovations in ICT-using industries, increasing the demand for ICT capital, then innovations in ICT production can have important long-run effects before hitting diminishing returns (Basu et al, 2003). A similar point can be made for diffusion and roll-out of broadband and ever increasing bandwidth.…”

Section: Box 5 the Role Of Ict In Us-europe Growth Differentialsmentioning

confidence: 96%

“…Many studies find that much of the acceleration of TFP comes from an acceleration in technology use rather than from the production of ICT goods and software (see e.g. Basu et al, 2003, andPilat, 2005, and the references therein).…”

Section: Productivity Effects Of Ictsmentioning

confidence: 99%

“…The information in this document relates to the area under the effective control of the Government of the Republic of Cyprus. Basu et al (2003) argue that the US -UK TFP differentials from 1995 onwards can be explained by a combination of unmeasured investments in intangible organisation capital and ICTs as a GPT, i.e. ICTs and the complementary investments and innovations they induce.…”

Section: Footnote By All the European Union Member States Of The Oecdmentioning

confidence: 99%

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Broadband and the Economy

Welsum¹

2008

OECD Digital Economy Papers

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BROADBAND AND THE ECONOMY SummaryThis report examines the way in which broadband networks interact with the economy, the role they play in creating the conditions for sustainable economic growth and prosperity, and the structural changes they enable. Emphasis is put on the economic impacts, in particular on growth, globalisation and employment.Broadband networks are an increasingly integral part of the economy. As the technology evolves and bandwidth increases, the scope for broadband to act as an enabler of structural change in the economy expands as it affects an increasing number of sectors and activities. Direct effects result from investments in the technology and from rolling out the infrastructure. Indirect effects come from broadband's impact on factors driving growth, such as innovation, firm efficiency, competition and globalisation. Broadband facilitates the development of new inventions, new and improved goods and services, new processes, new business models, and it increases competitiveness and flexibility in the economy. More generally, broadband enables improved performance of information and communication technologies (ICTs) a general purpose technology (GPT) that is one of only a few technological improvements that fundamentally change how and where economic activity is organised. As such, significant impacts on the economy can be expected for example by enabling organisational change and enhancing co-ordination to reap productivity gains from overall investments in ICTs, although it may be difficult to clearly disentangle the economic impact of broadband from that of ICTs more generally. Furthermore, relative to other historical GPTs, such as railways and electricity, the impacts may be larger and materialise more rapidly.Broadband has become an important part of almost every aspect of the knowledge economy and is especially so in activities that rely on the provision of data and information, particularly in service sectors. Many aspects of producing, delivering, consuming, co-ordination and organisation are now taking place over broadband communications networks. Broadband generates increased efficiency, productivity and welfare gains, and potentially contributes to job creation and occupational change. But it also gives rise to security and privacy concerns, and protecting users' security is increasingly important as the broadbandenabled Internet becomes part of the economic infrastructure.Broadband is also increasingly important as an enabling technology for structural changes in the economy, most notably via its impact on productivity growth, but also by raising product market competition in many sectors, especially in services. ICTs and broadband are facilitating the globalisation of many services, with broadband making it feasible for producers and consumers of services to be in different geographical locations. ICT-enabled globalisation of services is having a fundamental impact on the way economies work and on the global allocation of resources, contributing to productivity growth by ex...

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supporting

confidence: 75%

Section: Box 5 the Role Of Ict In Us-europe Growth Differentialsmentioning

confidence: 96%

Section: Productivity Effects Of Ictsmentioning

confidence: 99%

Section: Footnote By All the European Union Member States Of The Oecdmentioning

confidence: 99%

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Broadband and the Economy

Welsum¹

2008

OECD Digital Economy Papers

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“…Many studies have actually confirmed the importance of ICTs for the improved productivity performance of the U.S. in the 1990s (Oliner andSichel, 2000 andJorgenson et al, 2002;Daveri, 2003). Similar research on individual countries has been provided for the United Kingdom (Oulton and Srinivasan, 2005;Marrano et al, 2009), but also conducted in an international comparative perspective (Basu et al, 2004;Inklaar et al, 2007;Van Ark et al, 2008). A recent study that established growth accounting as a well-tested approach is that of Jorgenson and Timmer (2011).…”

Section: Literature Reviewmentioning

confidence: 76%