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ICT and Europe's productivity performance industry-level growth account comparisons with the United States

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Author Info
Inklaar, Robert
Mahony, Mary O'
Timmer, Marcel (Groningen University)

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Abstract

In this paper we present a new industry-level database to analyse sources of growth in four major European countries: France, Germany, Netherlands and United Kingdom (EU-4), in comparison with the United States for the period 1979-2000. Aggregate labour productivity growth is decomposed into industry-level contributions of labour quality, ICT and non-ICT capital deepening and TFP. A small set of service industries is mainly responsible for the acceleration in ICT capital deepening in both regions, but their contribution to growth is lower in the EU-4 than in the U.S. TFP in these industries accelerated in the U.S in the 1990s, but not in Europe. In addition, widespread deceleration in non-ICT capital deepening in the EU-4 has led to a European productivity slowdown. This is linked to wage moderation in the 1990s.

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Paper provided by Groningen Growth and Development Centre, University of Groningen in its series GGDC Research Memorandum with number 200368.

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Date of creation: 2003
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Handle: RePEc:dgr:rugggd:200368

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  1. Evangelia Vourvachaki, 2005. "Information and Communication Technologies in a Multi-Sector Endogenous Growth Model," Money Macro and Finance (MMF) Research Group Conference 2005 10, Money Macro and Finance Research Group. [Downloadable!]
    Other versions:
  2. Robert Inklaar & Marcel P. Timmer & Bart van Ark, 2006. "Mind the gap! International comparisons of productivity in services and goods production," Hi-Stat Discussion Paper Series d06-175, Institute of Economic Research, Hitotsubashi University. [Downloadable!]
    Other versions:
  3. 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. [Downloadable!]
  4. Stephen D. Oliner & Daniel E. Sichel. & Kevin J. Stiroh, 2007. "Explaining a productive decade," Finance and Economics Discussion Series 2007-63, Board of Governors of the Federal Reserve System (U.S.). [Downloadable!]
    Other versions:
  5. Thierry Tressel, 2008. "Does Technological Diffusion Explain Australia's Productivity Performance?," IMF Working Papers 08/4, International Monetary Fund. [Downloadable!]
  6. Lach, Saul & Shiff, Gil & Trajtenberg, Manuel, 2008. "Together but Apart: ICT and Productivity Growth in Israel," CEPR Discussion Papers 6732, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
  7. Theo Eicher & Oliver Röhn, 2007. "Sources of the German Productivity Demise – Tracing the Effects of Industry-Level ICT Investment," CESifo Working Paper Series CESifo Working Paper No. , CESifo Group Munich. [Downloadable!]
  8. Georg Erber, 2006. "Benchmarking Efficiency of Telecommunication Industries in the US and Major European Countries: A Stochastic Possibility Frontiers Approach," Discussion Papers of DIW Berlin 621, DIW Berlin, German Institute for Economic Research. [Downloadable!]
  9. Lourens Broersma & Jouke Van Dijk, 2005. "Regional Differences in Productivity Growth in the Netherlands - an Industry-level Growth Accounting," ERSA conference papers ersa05p62, European Regional Science Association. [Downloadable!]
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  10. Robert Inklaar & Marcel Timmer, 2008. "Accounting for growth in retail trade: an international productivity comparison," Journal of Productivity Analysis, Springer, vol. 29(1), pages 23-31, February. [Downloadable!] (restricted)
  11. Laura Abramovsky & Rachel Griffith, 2009. "ICT, corporate restructuring and productivity," IFS Working Papers W09/10, Institute for Fiscal Studies. [Downloadable!]
  12. Giovanni Notaro, 2004. "ICT, Output and Productivity Growth in the United Kingdom: A Sectoral Analysis," International Productivity Monitor, Centre for the Study of Living Standards, vol. 8, pages 37-46, Spring. [Downloadable!]
  13. Robert J. Gordon & Ian Dew-Becker, 2005. "Why did Europe’s productivity catch-up sputter out? a tale of tigers and tortoises," Proceedings, Federal Reserve Bank of San Francisco. [Downloadable!]
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