Contribution of ICT to the Chinese Economic Growth
AbstractThe view about systematic irrationality of investors and managers in investment with reference to information and communication technology (ICT) with no effects on productivity growth is called productivity paradox. Research suggests that ICT return in developed nations is significant and positive, but not in developing countries. This paper challenges the above conclusion by examining the contribution of ICT to the Chinese economic growth. We investigate the relationship between TFP growth and ICT capital and provide estimation of the returns to ICT investment. The contribution of ICT to economic growth has not been studied earlier for the developing countries like China. The empirical results suggest that China has reaped the benefits of ICT investment. The policy implications for the Chinese ICT investment and development are also discussed. The results add to our understanding of how ICT affects growth in the context of economic development.
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Bibliographic InfoPaper provided by The Ratio Institute in its series Ratio Working Papers with number 91.
Length: 29 pages
Date of creation: 25 Apr 2006
Date of revision:
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More information through EDIRC
Productivity paradox; ICT; economic development; TFP growth; China;
Find related papers by JEL classification:
- D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
- E22 - Macroeconomics and Monetary Economics - - Macroeconomics: Consumption, Saving, Production, Employment, and Investment - - - Capital; Investment; Capacity
- O47 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Measurement of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
This paper has been announced in the following NEP Reports:
- NEP-ALL-2006-04-29 (All new papers)
- NEP-CNA-2006-04-29 (China)
- NEP-EFF-2006-04-29 (Efficiency & Productivity)
- NEP-INO-2006-04-29 (Innovation)
- NEP-MAC-2006-04-29 (Macroeconomics)
- NEP-SEA-2006-04-29 (South East Asia)
- NEP-TRA-2006-04-29 (Transition Economics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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