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ICT growth effects at the industry level: A comparison between the US and the EU

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  • Dimelis, Sophia P.
  • Papaioannou, Sotiris K.

Abstract

This is an empirical study on the growth impact of Information and Communication Technologies using industry-level data for the US and the EU industries over the period 1980-2000. A panel data approach is employed to estimate the ICT effect using the system GMM and the pooled mean group panel data estimators. The results vary depending on the period, the region, and the type of industry considered. The GMM estimates suggest a significant ICT effect on growth during the 90s both in the US and in the EU. This effect for the EU was strong in the early 90s and weakened afterwards, as opposed to the US where it strengthened in the late 90s. The results of the pooled mean group estimator confirm that the long run growth contribution of ICT was significantly positive in the industries of both regions and over the entire period 1980-2000. However, it seems that the productivity effects of ICT are mainly present in the industries which are either ICT producers or heavy ICT users.

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Bibliographic Info

Article provided by Elsevier in its journal Information Economics and Policy.

Volume (Year): 23 (2011)
Issue (Month): 1 (March)
Pages: 37-50

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Handle: RePEc:eee:iepoli:v:23:y:2011:i:1:p:37-50

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Web page: http://www.elsevier.com/locate/inca/505549

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Keywords: Growth Information technology Industry effects Panel data;

References

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Cited by:
  1. Kim, Younjun & Orazem, Peter F., 2012. "Broadband Internet and Firm Entry: Evidence from Rural Iowa," 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington 124879, Agricultural and Applied Economics Association.
  2. Vu, Khuong M., 2013. "Information and Communication Technology (ICT) and Singapore’s economic growth," Information Economics and Policy, Elsevier, vol. 25(4), pages 284-300.
  3. Sadaf Bashir & Bert Sadowski, 2014. "General Purpose Technologies: A Survey, a Critique and Future Research Directions," Working Papers 14-02, Eindhoven Center for Innovation Studies, revised Feb 2014.

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