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ICT drives the U.S. productivity revival

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Abstract

The combination of strong labor productivity growth and accelerating investment in information and communications technology (ICT) equipment has led many to believe that the ICT revolution is driving the U.S. productivity revival. This paper reviews aggregate evidence for the U.S. economy in the 1990s that shows that both the production and the use of ICT equipment have made important contributions to aggregate productivity growth. Taken together, the ICT-producing and ICT-using channels account for about half of the aggregate productivity acceleration in the U.S. in the late 1990s.

Suggested Citation

  • Stiroh, Kevin, 2001. "ICT drives the U.S. productivity revival," Journal of Financial Transformation, Capco Institute, vol. 2, pages 29-34.
    • Handle: RePEc:ris:jofitr:1264
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    Keywords

    Information and communications technology (ICT); productivity growth;

    JEL classification:

    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General

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