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The contribution of ICT to economic activity: a growth accounting exercise with Spanish firm-level data

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Author Info
Ignacio Hernando () (Banco de España)
Soledad Núñez () (Banco de España)
Abstract

This paper applies a well-established growth accounting framework to measure the contribution of ICT inputs to output and labour productivity growth in Spain, using a sample of 1300 firms per year over 1991-2000. Firm-level data are helpful to overcome the availability lags and the mismeasurement of capital stocks associated with the use of aggregate data. We find that: 1) The use of ICT inputs has made a positive and significant contribution to output and productivity growth. 2) This contribution was higher in the second half of the 1990s. 3) At a sectoral level, there is a general rise in the share of ICT in total capital and a general reduction in ICT cost shares. (Copyright: Fundación SEPI)

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File URL: ftp://ftp.funep.es/InvEcon/paperArchive/May2004/v28i2a5.pdf
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Publisher Info
Article provided by Fundación SEPI in its journal Investigaciones Económicas.

Volume (Year): 28 (2004)
Issue (Month): 2 (May)
Pages: 315-348
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Handle: RePEc:iec:inveco:v:28:y:2004:i:2:p:315-348

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Postal: Investigaciones Economicas Fundación SEPI Quintana, 2 (planta 3) 28008 Madrid Spain
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Related research
Keywords: Information and communication technologies growth accounting technological change

Find related papers by JEL classification:
O33 - Economic Development, Technological Change, and Growth - - Technological Change - - - Technological Change: Choices and Consequences; Diffusion Processes
D24 - Microeconomics - - Production and Organizations - - - Production; Capital and Total Factor Productivity; Capacity
L63 - Industrial Organization - - Industry Studies: Manufacturing - - - Microelectronics; Computers; Communications Equipment

References listed on IDEAS
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  1. Ángel Estrada & David López-Salido, 2001. "Accounting for Spanish productivity growth using sectoral data: New Evidence," Banco de España Working Papers 0110, Banco de España.
  2. Matteo Bugamelli & Patrizio Pagano, 2001. "Barriers to investment in ICT," Temi di discussione (Economic working papers) 420, Bank of Italy, Economic Research Department. [Downloadable!]
    Other versions:
  3. Brynjolfsson, Erik. & Hitt, Lorin M., 1995. "Paradox lost? : firm-level evidence on the returns to information systems spending," Working papers 3786-95., Massachusetts Institute of Technology (MIT), Sloan School of Management. [Downloadable!]
  4. Paul Schreyer, 2000. "The Contribution of Information and Communication Technology to Output Growth: A Study of the G7 Countries," OECD Science, Technology and Industry Working Papers 2000/2, OECD Directorate for Science, Technology and Industry. [Downloadable!]
  5. Karl Whelan, 2000. "Computers, obsolescence, and productivity," Finance and Economics Discussion Series 2000-06, Board of Governors of the Federal Reserve System (U.S.). [Downloadable!]
    Other versions:
  6. Dale W. Jorgenson & Kevin J. Stiroh, 2000. "Raising the Speed Limit: US Economic Growth in the Information Age," OECD Economics Department Working Papers 261, OECD Economics Department. [Downloadable!]
    Other versions:
  7. Ángel Estrada & David López-Salido, 2001. "Accounting for Spanish productivity growth using sectoral data: New Evidence," Banco de España Working Papers 0110, Banco de España.
  8. Ronald M. Albers, 2002. "New technologies and productivity growth in the Euro area," Working Paper Series 122, European Central Bank. [Downloadable!]
  9. Brynjolfsson, Erik & Hitt, Lorin M., 2004. "Computing Productivity: Firm-Level Evidence," Working papers 4210-01, Massachusetts Institute of Technology (MIT), Sloan School of Management. [Downloadable!]
    Other versions:
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