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Information and Communication technology and its effect on productivity growth in seven European countries

Dunér, Fredrik LU (2015) NEKH01 20151
Department of Economics
Abstract
Productivity is an important factor in determining a nation’s wealth, successfulness and long-run economic growth. As such it is of interest to determine what affects productivity and during the last couple of decade’s information and communication technology has been seen as the next innovation to have a widespread impact on productivity growth. This paper empirically examines the impact of investments in information and communication technology on productivity growth in Austria, Denmark, Finland, Italy, Spain, the Netherlands and the United Kingdoms. Furthermore is the theory of ICT being a general purpose technology examined. The econometrical study is done by examining harmonized panel data for each country consisting of 22 different... (More)
Productivity is an important factor in determining a nation’s wealth, successfulness and long-run economic growth. As such it is of interest to determine what affects productivity and during the last couple of decade’s information and communication technology has been seen as the next innovation to have a widespread impact on productivity growth. This paper empirically examines the impact of investments in information and communication technology on productivity growth in Austria, Denmark, Finland, Italy, Spain, the Netherlands and the United Kingdoms. Furthermore is the theory of ICT being a general purpose technology examined. The econometrical study is done by examining harmonized panel data for each country consisting of 22 different sectors during the period 1970-2007. Investments in labor, ICT capital and non-ICT capital are used as explanatory variables for value added which acts as a proxy for productivity. The study shows that investments in ICT capital has only had a significant impact on productivity growth for Austria, Finland and the United Kingdoms which raises the question whether ICT truly is a general purpose technology. The results differ from previous research and brings into question the validity of those studies, the methods used and the data that has been analyzed. (Less)
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author
Dunér, Fredrik LU
supervisor
organization
course
NEKH01 20151
year
type
M2 - Bachelor Degree
subject
keywords
ICT, GPT, Productivity growth, Panel data, Europe
language
English
id
5473333
date added to LUP
2015-06-30 15:30:14
date last changed
2015-06-30 15:30:14
@misc{5473333,
  abstract     = {Productivity is an important factor in determining a nation’s wealth, successfulness and long-run economic growth. As such it is of interest to determine what affects productivity and during the last couple of decade’s information and communication technology has been seen as the next innovation to have a widespread impact on productivity growth. This paper empirically examines the impact of investments in information and communication technology on productivity growth in Austria, Denmark, Finland, Italy, Spain, the Netherlands and the United Kingdoms. Furthermore is the theory of ICT being a general purpose technology examined. The econometrical study is done by examining harmonized panel data for each country consisting of 22 different sectors during the period 1970-2007. Investments in labor, ICT capital and non-ICT capital are used as explanatory variables for value added which acts as a proxy for productivity. The study shows that investments in ICT capital has only had a significant impact on productivity growth for Austria, Finland and the United Kingdoms which raises the question whether ICT truly is a general purpose technology. The results differ from previous research and brings into question the validity of those studies, the methods used and the data that has been analyzed.},
  author       = {Dunér, Fredrik},
  keyword      = {ICT,GPT,Productivity growth,Panel data,Europe},
  language     = {eng},
  note         = {Student Paper},
  title        = {Information and Communication technology and its effect on productivity growth in seven European countries},
  year         = {2015},
}