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Information Technology and The World Growth Resurgence

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  • Dale W. Jorgenson
  • Khuong Vu
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    Abstract

    This paper analyzes the impact of investment in information technology (IT) on the recent resurgence of world economic growth. We describe the growth of the world economy, seven regions, and fourteen major economies during the period 1989-2004. We allocate the growth of world output between input growth and productivity and find, surprisingly, that input growth greatly predominates! Moreover, differences in per capita output levels are explained by differences in per capita input, rather than variations in productivity. The contributions of IT investment have increased in all regions, but especially in industrialized economies and Developing Asia.

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    File URL: http://hi-stat.ier.hit-u.ac.jp/research/discussion/2006/pdf/D06-181.pdf
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    Bibliographic Info

    Paper provided by Institute of Economic Research, Hitotsubashi University in its series Hi-Stat Discussion Paper Series with number d06-181.

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    Date of creation: Aug 2006
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    Handle: RePEc:hst:hstdps:d06-181

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    Keywords: growth; investment; productivity; information technology;

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