Productivity Growth and the Role of ICT in the United Kingdom: An Industry View, 1970-2000
AbstractWe 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 InfoPaper provided by Centre for Economic Performance, LSE in its series CEP Discussion Papers with number dp0681.
Date of creation: Mar 2005
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Web page: http://cep.lse.ac.uk/_new/publications/series.asp?prog=CEP
productivity; TFP; ICT;
Other versions of this item:
- Nicholas Oulton & Sylaja Srinivasan, 2005. "Productivity growth and the role of ICT in the United Kingdom: an industry view, 1970-2000," LSE Research Online Documents on Economics 19901, London School of Economics and Political Science, LSE Library.
- O47 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Measurement of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
- O52 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - Europe
- D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
This paper has been announced in the following NEP Reports:
- NEP-ALL-2005-12-01 (All new papers)
- NEP-BEC-2005-12-01 (Business Economics)
- NEP-EFF-2005-12-01 (Efficiency & Productivity)
- NEP-ICT-2005-12-01 (Information & Communication Technologies)
- NEP-INO-2005-12-01 (Innovation)
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