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Economic Growth in the New Economy: Evidence from Advanced Economies

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  • Jukka Jalava
  • Matti Pohjola

Abstract

By definition, the 'New Economy' is an economy where business firms have learnt to take advantage of both the ICT revolution and the globalization of business activities in ways which improve productivity. First, by surveying recent research findings, this paper confirms that both the production and use of ICT have been the factors behind the improved economic performance of the United States in the 1990s. The benefits from ICT use are likely to have exceeded the benefits from ICT production. However, the evidence for the New Economy is much weaker outside the United States.

Suggested Citation

  • Jukka Jalava & Matti Pohjola, 2001. "Economic Growth in the New Economy: Evidence from Advanced Economies," WIDER Working Paper Series DP2001-05, World Institute for Development Economic Research (UNU-WIDER).
    • Handle: RePEc:unu:wpaper:dp2001-05
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    References listed on IDEAS

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    1. Robert J. Gordon, 2000. "Does the "New Economy" Measure Up to the Great Inventions of the Past?," Journal of Economic Perspectives, American Economic Association, vol. 14(4), pages 49-74, Fall.
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    5. Jalava, Jukka & Pohjola, Matti, 2002. "Economic growth in the New Economy: evidence from advanced economies," Information Economics and Policy, Elsevier, vol. 14(2), pages 189-210, June.
    6. Jalava, Jukka & Pohjola, Matti, 2002. "Economic growth in the New Economy: evidence from advanced economies," Information Economics and Policy, Elsevier, vol. 14(2), pages 189-210, June.
    7. Pohjola, Matti (ed.), 2001. "Information Technology, Productivity, and Economic Growth: International Evidence and Implications for Economic Development," OUP Catalogue, Oxford University Press, number 9780199243983, Decembrie.
    8. Alessandra Colecchia & Paul Schreyer, 2001. "ICT Investment and Economic Growth in the 1990s: Is the United States a Unique Case? A Comparative Study of Nine OECD Countries," OECD Science, Technology and Industry Working Papers 2001/7, OECD Publishing.
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