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What Explains the ICT Diffusion Gap Between the Major Industrialized Countries: An Empirical Analysis?

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  • Gilbert Cette
  • Jimmy Lopez

Abstract

Over the last few years, a large body of literature has shown that the level of information and communications technology (ICT) diffusion, and, as a result, the favorable effects of this diffusion on productivity, differ greatly between the major advanced countries, with the United States the country where ICT diffusion is strongest. This study aims to explain empirically this gap. Annual macroeconomic panel data are used for the period 1981-2005 and cover eleven OECD countries: Austria, Denmark, Finland, France, Germany, Italy, Japan, the Netherlands, Spain, the United Kingdom and the United States. The estimates obtained provide insight into the factors determining ICT diffusion and the gaps in this diffusion vis-à- vis the United-States. Compared to the United States, the lower ICT diffusion in the other major advanced countries can be explained by a smaller share of the population with a higher education and/or a higher level of rigidity in labour and product markets.

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Bibliographic Info

Article provided by Centre for the Study of Living Standards in its journal International Productivity Monitor.

Volume (Year): 17 (2008)
Issue (Month): (Fall)
Pages: 28-39

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Handle: RePEc:sls:ipmsls:v:17:y:2008:3

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Related research

Keywords: ICT; Investment; OECD; Education; Diffusion; Rigidity; Labour market; Product Market;

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References

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  1. Daniel Cohen & Marcelo Soto, 2001. "Growth and Human Capital: Good Data, Good Results," OECD Development Centre Working Papers 179, OECD Publishing.
  2. Antipa, P. & Cette, G. & Frey, L. & Lecat, R. & Vigna, O., 2007. "Évolutions récentes de la productivité : accélération structurelle dans la zone euro et ralentissement structurel aux États-Unis ?," Bulletin de la Banque de France, Banque de France, issue 164, pages 25-35.
  3. Olivier Blanchard, 2006. "European unemployment: the evolution of facts and ideas," Economic Policy, CEPR;CES;MSH, vol. 21(45), pages 5-59, 01.
  4. Cette, G. & Lopez, J. & Noual, P-A., 2004. "Investment in Information and Communication Technologies: an Empirical Analysis," Working papers 116, Banque de France.
  5. Gilbert Cette & Jimmy Lopez, 2009. "Comportement de demande de TIC : une comparaison internationale," Economie Internationale, CEPII research center, issue 119, pages 83-114.
  6. Bruno Amable & Donatella Gatti, 2006. "Labor and product market reforms: questioning policy complementarity," Industrial and Corporate Change, Oxford University Press, vol. 15(1), pages 101-122, February.
  7. Koeniger, Winfried & Vindigni, Andrea, 2003. "Employment Protection and Product Market Regulation," IZA Discussion Papers 880, Institute for the Study of Labor (IZA).
  8. Philippe Aghion & Peter Howitt, 2006. "Joseph Schumpeter Lecture Appropriate Growth Policy: A Unifying Framework," Journal of the European Economic Association, MIT Press, vol. 4(2-3), pages 269-314, 04-05.
  9. Gilbert Cette & Jimmy Lopez & Pierre-Alexandre Noual, 2004. "Le comportement de demande en capital TIC : une analyse empirique sur quelques grands pays industrialises," Economie Internationale, CEPII research center, issue 98, pages 59-82.
  10. Gust, Christopher & Marquez, Jaime, 2004. "International comparisons of productivity growth: the role of information technology and regulatory practices," Labour Economics, Elsevier, vol. 11(1), pages 33-58, February.
  11. Paul Conway & Giuseppe Nicoletti, 2006. "Product Market Regulation in the Non-Manufacturing Sectors of OECD Countries: Measurement and Highlights," OECD Economics Department Working Papers 530, OECD Publishing.
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Citations

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Cited by:
  1. Bilal Mehmood & Parvez Azim & Sofia Anwar, 2013. "Economic Convergence in Context of Knowledge Economies in Asia: Instrumental Variable Estimation," Oeconomics of Knowledge, Saphira Publishing House, vol. 5(1), pages 15-28, January.
  2. Nicolas Dromel & Gilbert Cette & Renaud Bourlès & Philippe Askenazy & Philippe Aghion, 2008. "Distance à la frontière technologique, rigidités de marché, éducation et croissance," Économie et Statistique, Programme National Persée, vol. 419(1), pages 11-30.
  3. Nicholas Oulton, 2010. "Long Term Implications of the ICT Revolution: Applying the Lessons of Growth Theory and Growth Accounting," CEP Discussion Papers dp1027, Centre for Economic Performance, LSE.
  4. Nicholas Oulton, 2013. "Medium and Long Run Prospects for UK Growth in the Aftermath of the Financial Crisis," CEP Occasional Papers 37, Centre for Economic Performance, LSE.
  5. Gilbert Cette & Yusuf Kocoglu & Jacques Mairesse, 2009. "Productivity Growth and Levels in France, Japan, the United Kingdom and the United States in the Twentieth Century," NBER Working Papers 15577, National Bureau of Economic Research, Inc.
  6. Gilbert Cette & Anne Epaulard & Pauline Givord, 2009. "Productivity Growth: the Role of Institutions and Economic Policy," Economie et Statistique, Institut National de la Statistique et des Etudes Economiques, vol. 419, pages 3-10, August.
  7. Bilal MEHMOOD & Parvez AZIM, 2013. "Does ICT Participate in Economic Convergence among Asian Countries: Evidence from Dynamic Panel Data Model," Informatica Economica, Academy of Economic Studies - Bucharest, Romania, vol. 17(2), pages 7-16.

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