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The Contribution of ICT-Producing and ICT-Using Industries to Productivity Growth: A Comparison of Canada, Europe and the United States

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  • Bart van Ark

    ()

  • Robert Inklaar
  • Robert H. McGuckin

Abstract

Both ICT-producing and ICT-using industries have contributed disproportionately to labour productivity growth in the 1990s. In this article, Bart van Ark, Robert Inklaar from the University of Groningen and Robert H. McGuckin of the U.S. Conference Board compare Canada, the United States and Europe in terms of the contribution of ICT-producing and ICT-using industries to productivity growth. In the 1995-2000 period, the contribution of ICT-producing industries to labour productivity growth was similar in Canada and the Europe, but only half that in the United State. In terms of the contribution of ICT-using industries, Canada was in an intermediate position between Europe and the United States. The authors offer as a possible explanation for this latter situation Canada's equally intermediate position between the relative strict labour and product market regulation in Europe and more lax environment in the United States.

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Bibliographic Info

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

Volume (Year): 6 (2003)
Issue (Month): (Spring)
Pages: 56-63

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Handle: RePEc:sls:ipmsls:v:6:y:2003:5

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Keywords: Canada; United States; Europe; Productivity; Growth; ICT; Information; Communication; Technology; Sources of Growth; Services; Industry;

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References

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  1. Kevin J. Stiroh, 2001. "Information technology and the U.S. productivity revival: what do the industry data say?," Staff Reports 115, Federal Reserve Bank of New York.
  2. Oliner, Stephen D. & Sichel, Daniel E., 2003. "Information technology and productivity: where are we now and where are we going?," Journal of Policy Modeling, Elsevier, vol. 25(5), pages 477-503, July.
  3. Bart van Ark, 2002. "Understanding Productivity and Income Differentials Among OECD Countries: A Survey," The Review of Economic Performance and Social Progress, in: Andrew Sharpe, Executive Director & France St-Hilaire, Vice-President , Research & Keith Banting, Di (ed.), The Review of Economic Performance and Social Progress 2002: Towards a Social Understanding of Productivity, volume 2 Centre for the Study of Living Standards & The Institutute for Research on Public Policy.
  4. Alessandra Colecchia & Paul Schreyer, 2002. "The contribution of information and communication technologies to economic growth in nine OECD countries," OECD Economic Studies, OECD Publishing, vol. 2002(1), pages 153-171.
  5. Dale W. Jorgenson, 2001. "Information Technology and the U. S. Economy," Harvard Institute of Economic Research Working Papers 1911, Harvard - Institute of Economic Research.
  6. Bart van Ark & Robert Inklaar & Robert H. McGuckin, 2002. "'Changing Gear' - Productivity, ICT and Services Industries: Europe and the United States," Economics Program Working Papers 02-02, The Conference Board, Economics Program.
  7. Erik Brynjolfsson & Lorin M. Hitt, 2000. "Beyond Computation: Information Technology, Organizational Transformation and Business Performance," Journal of Economic Perspectives, American Economic Association, vol. 14(4), pages 23-48, Fall.
  8. Martin Neil Baily, 2002. "Distinguished Lecture on Economics in Government: The New Economy: Post Mortem or Second Wind?," Journal of Economic Perspectives, American Economic Association, vol. 16(2), pages 3-22, Spring.
  9. Dale W. Jorgenson, 2001. "Information Technology and the U.S. Economy," American Economic Review, American Economic Association, vol. 91(1), pages 1-32, March.
  10. Hashmat Khan & Marjorie Santos, 2002. "Contribution of ICT Use to Output and Labour-Productivity Growth in Canada," Working Papers 02-7, Bank of Canada.
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Citations

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Cited by:
  1. Meijers, Huub, 2007. "ICT Externalities: Evidence from cross country data," MERIT Working Papers 021, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
  2. Ketteni, Elena & Mamuneas, Theofanis & Stengos, Thanasis, 2011. "The Effect Of Information Technology And Human Capital On Economic Growth," Macroeconomic Dynamics, Cambridge University Press, vol. 15(05), pages 595-615, November.
  3. Peter J. Nicholson, 2003. "The Growth Story: Canada's Long-run Economic Performance and Prospects," International Productivity Monitor, Centre for the Study of Living Standards, vol. 7, pages 3-23, Fall.
  4. Theo Eicher & Oliver Röhn, 2007. "Sources of the German Productivity Demise – Tracing the Effects of Industry-Level ICT Investment," CESifo Working Paper Series 1896, CESifo Group Munich.
  5. Michelle Rendall & Franziska J. Weiss, 2014. "Employment polarization and the role of the apprenticeship system," ECON - Working Papers 141, Department of Economics - University of Zurich.
  6. Richard G. Harris & Peter E. Robertson, 2007. "Dynamic Adjustments to Terms of Trade Shocks: The USA Productivity Boom and Australia," Discussion Papers 2007-16, School of Economics, The University of New South Wales.
  7. Meijers, Huub, 2006. "Diffusion of the Internet and low inflation in the information economy," Information Economics and Policy, Elsevier, vol. 18(1), pages 1-23, March.
  8. Ioannis Giotopoulos & Georgios Fotopoulos, 2010. "Intra-Industry Growth Dynamics in the Greek Services Sector: Firm-Level Estimates for ICT-Producing, ICT-Using, and Non-ICT Industries," Review of Industrial Organization, Springer, vol. 36(1), pages 59-74, February.
  9. Theo S. Eicher & Oliver Roehn, 2007. "Sources of the German Productivity Demise: Tracing the Effects of Industry-Level Information and Communication Technology Investment," German Economic Review, Verein für Socialpolitik, vol. 8, pages 211-236, 05.
  10. Theo S. Eicher & Thomas Strobel, 2008. "Germany’s Continued Productivity Slump: An Industry Analysis," Ifo Working Paper Series Ifo Working Paper No. 58, Ifo Institute for Economic Research at the University of Munich.

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