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ICT contribution to growth measurement: do we miss a lot?

In: Elgar Encyclopedia on the Economics of Knowledge and Innovation

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  • Gilbert Cette
  • Vincenzo Spiezia

Abstract

ICTs impact productivity through their impact on capital over labour ratio (capital deepening) and through their impact on total factor productivity (TFP). The impact on TFP is itself twofold as it corresponds to a TFP impact in ICT producing sectors and to a TFP impact in ICT using sectors through spillover/externality effects (or network effects). The evaluation of ICT contribution to growth suffers from three different types of measurement difficulties: the estimation of ICT own-account investment, the classification of ICT capital goods and the estimation of ICT prices. These three sources of mismeasurement could be large, suggesting a significant underestimation of the ICT contribution to growth

Suggested Citation

  • Gilbert Cette & Vincenzo Spiezia, 2022. "ICT contribution to growth measurement: do we miss a lot?," Chapters, in: Cristiano Antonelli (ed.), Elgar Encyclopedia on the Economics of Knowledge and Innovation, chapter 22, pages 177-185, Edward Elgar Publishing.
    • Handle: RePEc:elg:eechap:19760_22
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