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The Role of ICT in the Spanish Productivity Slowdown

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Author Info

  • Quesada Ibáñez Javier

    ()
    (UNIVERSITY OF VALENCIA INSTITUTO VALENCIANO DE INVESTIGACIONES ECONÓMICAS (Ivie))

  • Mas Ivars Matilde

    ()
    (UNIVERSITY OF VALENCIA INSTITUTO VALENCIANO DE INVESTIGACIONES ECONÓMICAS (Ivie))

Abstract

The paper presents a quantification of Spanish productivity performance over the last two decades- with a special mention to the role played by Information and Communication Technologies (ICT). It makes use of the capital service data - recently released by the BBVA Foundation - exploiting its sectoral breakdown. It concentrates on twenty six industries belonging to the business (non-primary) sectors of the economy. These industries are further grouped in two clusters according to their intensity in the use of ICT capital. Our results show that the ICT cluster as a whole has presented the most dynamic behaviour. However, some important differences can be detected, both among the industries included in the cluster and also over the period under consideration. A growth accounting exercise allows us to conclude that the Spanish economy shows notable inefficiencies, as identified by negative Total Factor Productivity (TFP) contributions to productivity growth during the period 1985-2004. However, the ICT intensive cluster has reversed its behaviour since 2000, driving a modest resurgence of labour productivity in Spain over the 2000-2004 period.

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Bibliographic Info

Paper provided by Fundacion BBVA / BBVA Foundation in its series Working Papers with number 201035.

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Length: 36
Date of creation: Mar 2006
Date of revision:
Handle: RePEc:fbb:wpaper:201035

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Keywords: Growth accounting; productivity; information and communication technologies;

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References

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  1. Bresnahan, Timothy F, 1986. "Measuring the Spillovers from Technical Advance: Mainframe Computers inFinancial Services," American Economic Review, American Economic Association, vol. 76(4), pages 742-55, September.
  2. Marcel P. Timmer & Bart van Ark, 2005. "Does information and communication technology drive EU-US productivity growth differentials?," Oxford Economic Papers, Oxford University Press, vol. 57(4), pages 693-716, October.
  3. Dale W. Jorgenson & Kevin J. Stiroh, 2000. "Raising the Speed Limit: U.S. Economic Growth in the Information Age," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 31(1), pages 125-236.
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Citations

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Cited by:
  1. Escudero, Verónica & López Mourelo, Elva, 2012. "Improving Competitiveness and Fostering Productivity in Spain/Mejorar la competitividad y fomentar la productividad en España," Estudios de Economía Aplicada, Estudios de Economía Aplicada, vol. 30, pages 105-136, Abril.
  2. Diego Martínez & Jesús Rodríguez, 2009. "New technologies and regional growth: the case of Andalucía," The Annals of Regional Science, Springer, vol. 43(4), pages 963-987, December.
  3. Mas, Matilde & Quesada, Javier, 2005. "Déficit tecnológico y crecimiento económico en España
    [Technological deficit and economic growth in Spain]
    ," MPRA Paper 15836, University Library of Munich, Germany, revised 2005.
  4. Martínez, Diego & Rodríguez, Jesús & Torres, José L., 2008. "The productivity paradox and the new economy: The Spanish case," Journal of Macroeconomics, Elsevier, vol. 30(4), pages 1569-1586, December.
  5. Manuel A. Hidalgo Pérez & Jesús Rodríguez López & José Mª O.Kean Alonso, 2008. "Labor demand and information technologies: evidence for Spain, 1980-2005," Economic Working Papers at Centro de Estudios Andaluces E2008/13, Centro de Estudios Andaluces.
  6. Jesús Rodríguez López & Diego Martínez López, 2006. "New technologies and economic growth: a regional approach. The case of Andalucia," Working Papers 06.27, Universidad Pablo de Olavide, Department of Economics.
  7. Mas, Matilde & Quesada, Javier & Robledo, Juan Carlos, 2007. "Las nuevas tecnologías y la competitividad industrial
    [New technologies and industrial competiveness]
    ," MPRA Paper 15826, University Library of Munich, Germany, revised 2007.
  8. Diego Martínez López & Jesús Rodríguez López, 2006. "The role of new technologies in the economic growth of Andalucia," Economic Working Papers at Centro de Estudios Andaluces E2006/19, Centro de Estudios Andaluces.

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