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Productivity Growth and the Role of ICT in the United Kingdom: An Industry View, 1970-2000

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  • Nicholas Oulton
  • Sylaja Srinivasan

Abstract

We use a new industry-level dataset to quantify the role of ICT in explaining productivity growth in the UK, 1970-2000. The dataset is for 34 industries covering the whole economy (31 in the market sector). Using growth accounting, we find that ICT capital played an increasingly important, and in the 1990s the dominant, role in accounting for labour productivity growth in the market sector. Econometric evidence also supports an important role for ICT. We also find econometric evidence that a boom in complementary investment in the 1990s could have led to a decline in the conventional measure of TFP growth.

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Bibliographic Info

Paper provided by Centre for Economic Performance, LSE in its series CEP Discussion Papers with number dp0681.

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Date of creation: Mar 2005
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Handle: RePEc:cep:cepdps:dp0681

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Web page: http://cep.lse.ac.uk/_new/publications/series.asp?prog=CEP

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Keywords: productivity; TFP; ICT;

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  1. Helpman, Elhanan & Trajtenberg, Manuel, 1994. "A Time to Sow and a Time to Reap: Growth Based on General Purpose Technologies," CEPR Discussion Papers, C.E.P.R. Discussion Papers 1080, C.E.P.R. Discussion Papers.
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  7. Nicholas Oulton, 2001. "ICT and productivity growth in the United Kingdom," Bank of England working papers, Bank of England 140, Bank of England.
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  13. Stiroh, Kevin J, 2002. "Are ICT Spillovers Driving the New Economy?," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 48(1), pages 33-57, March.
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  15. Paul Schreyer, 2000. "The Contribution of Information and Communication Technology to Output Growth: A Study of the G7 Countries," OECD Science, Technology and Industry Working Papers 2000/2, OECD Publishing.
  16. Charles R. Hulten, 2001. "Total Factor Productivity. A Short Biography," NBER Chapters, in: New Developments in Productivity Analysis, pages 1-54 National Bureau of Economic Research, Inc.
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Cited by:
  1. Francesco Venturini, 2009. "The long-run impact of ICT," Empirical Economics, Springer, Springer, vol. 37(3), pages 497-515, December.
  2. Dana Hajkova, 2008. "The Measurement of Capital Services in the Czech Republic," Working Papers, Czech National Bank, Research Department 2008/11, Czech National Bank, Research Department.
  3. Francesco VENTURINI, 2008. "Information Technology, Research & Development, or Both? What Really Drives A Nation's Productivity," Working Papers, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali 321, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
  4. Susanto Basu & John Fernald, 2006. "Information and communications technology as a general-purpose technology: evidence from U.S industry data," Working Paper Series, Federal Reserve Bank of San Francisco 2006-29, Federal Reserve Bank of San Francisco.
  5. Charlie Karlsson & Gunther Maier & Michaela Trippl & Iulia Siedschlag & Robert Owen & Gavin Murphy, 2008. "ICT Diffusion, Innovation Systems, Globalisation and Regional Economic Dynamics: Theory and Empirical Evidence," Papers, Economic and Social Research Institute (ESRI) WP233, Economic and Social Research Institute (ESRI).

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