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Monopoly deregulation, ICT capital, and labor productivity growth in the services sector

Govenius, Fredrik LU (2025) NEKP01 20251
Department of Economics
Abstract (Swedish)
A divergence in labor productivity growth rates in the services sector has been observed between in particular the euro-area members and the US since the mid-1990’s. The study addresses the question whether deregulation of the telecoms sector contributed to economic development through an elevated effect of ICT capital. The study finds ICT capital to have a positive effect on both real GDP growth and labor productivity growth in the services sector. However, limited evidence for the hypotheses of the study are found: Results from the study suggest no elevated effect of ICT capital on neither real GDP growth or labor productivity growth rates in the services sector in countries where deregulation of the telecoms sector occurred earlier and... (More)
A divergence in labor productivity growth rates in the services sector has been observed between in particular the euro-area members and the US since the mid-1990’s. The study addresses the question whether deregulation of the telecoms sector contributed to economic development through an elevated effect of ICT capital. The study finds ICT capital to have a positive effect on both real GDP growth and labor productivity growth in the services sector. However, limited evidence for the hypotheses of the study are found: Results from the study suggest no elevated effect of ICT capital on neither real GDP growth or labor productivity growth rates in the services sector in countries where deregulation of the telecoms sector occurred earlier and to a greater extent. The study contributes to the overall literature on policy intervention, deregulation, and economic development. It further contributes by highlighting the complexities, both from a data and a methodological stand point, surrounding correct interpretations of results from studies evaluating the effects of policy interventions on economic development. (Less)
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author
Govenius, Fredrik LU
supervisor
organization
course
NEKP01 20251
year
type
H2 - Master's Degree (Two Years)
subject
keywords
the ICT revolution, telecommunications, monopoly, deregulation, productivity growth, economic growth
language
English
id
9205382
date added to LUP
2025-09-12 10:52:26
date last changed
2025-09-12 10:52:26
@misc{9205382,
  abstract     = {{A divergence in labor productivity growth rates in the services sector has been observed between in particular the euro-area members and the US since the mid-1990’s. The study addresses the question whether deregulation of the telecoms sector contributed to economic development through an elevated effect of ICT capital. The study finds ICT capital to have a positive effect on both real GDP growth and labor productivity growth in the services sector. However, limited evidence for the hypotheses of the study are found: Results from the study suggest no elevated effect of ICT capital on neither real GDP growth or labor productivity growth rates in the services sector in countries where deregulation of the telecoms sector occurred earlier and to a greater extent. The study contributes to the overall literature on policy intervention, deregulation, and economic development. It further contributes by highlighting the complexities, both from a data and a methodological stand point, surrounding correct interpretations of results from studies evaluating the effects of policy interventions on economic development.}},
  author       = {{Govenius, Fredrik}},
  language     = {{eng}},
  note         = {{Student Paper}},
  title        = {{Monopoly deregulation, ICT capital, and labor productivity growth in the services sector}},
  year         = {{2025}},
}