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ICT, Output and Productivity Growth in the United Kingdom: A Sectoral Analysis

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  • Giovanni Notaro

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    Abstract

    Much has been written, including in previous issues of the Monitor, on the importance of Information and Communication Technologies (ICTs) in productivity growth, but this research has focused primarily on North America. In the fourth article, Giovanni Notaro of London Economics investigates this issue for the United Kingdom using a bottom-up analysis, in which aggregate trends are derived from trends in the 11 sectors of the economy. Using a standard growth accounting framework, Notaro finds ICTs made a substantial contribution to output growth in the largest sectors of the UK economy in the 1990s, and that ICT capital is a primary driver of labour productivity growth in all UK sectors except mining and quarrying. He concludes that the weaker productivity performance of the United Kingdom relative to the United States can be attributed mainly to slower accumulation of capital, both ICTs and non-ICTs.

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    Bibliographic Info

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

    Volume (Year): 8 (2004)
    Issue (Month): (Spring)
    Pages: 37-46

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    Handle: RePEc:sls:ipmsls:v:8:y:2004:4

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    Related research

    Keywords: Productivity Growth; Productivity; Information and Communication Technologies; Information Technology; Growth Accounting; United Kingdom; Sector; Industry; Europe;

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    References

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    1. Susanto Basu & John G. Fernald & Nicholas Oulton & Sylaja Srinivasan, 2003. "The case of the missing productivity growth: or, does information technology explain why productivity accelerated in the United States but not the United Kingdom?," Working Paper Series WP-03-08, Federal Reserve Bank of Chicago.
    2. Diewert, W. E., 1976. "Exact and superlative index numbers," Journal of Econometrics, Elsevier, vol. 4(2), pages 115-145, May.
    3. Inklaar, Robert & Mahony, Mary O' & Timmer, Marcel, 2003. "ICT and Europe's productivity performance industry-level growth account comparisons with the United States," GGDC Research Memorandum 200368, Groningen Growth and Development Centre, University of Groningen.
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    Cited by:
    1. Andrew Sharpe, 2006. "Lessons for Canada from International Productivity Experience," CSLS Research Reports 2006-02, Centre for the Study of Living Standards.

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