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Information Technology and Productivity Growth in Asia

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  • Il Houng Lee
  • Yougesh Khatri
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    Abstract

    The contribution of the information and communication technology (ICT) sector to growth in Asian economies is clearly evident from the expenditure side (net exports) and became particularly significant in the second half of the 1990s. This paper employs an extension of the standard growth accounting framework, using estimates of stock of ICT capital (hardware, software, and telecommunications equipment), to estimate the direct contributions to growth. The contribution of ICT to growth in Asia during the 1990s is found to be mainly from capital deepening. Total factor productivity (TFP) is also decomposed (using the dual-or revenue-based-approach) into the contributions of non-ICT capital stock, ICT capital stock, and labor. TFP growth is found to be relatively small in most Asian countries.

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    Bibliographic Info

    Paper provided by International Monetary Fund in its series IMF Working Papers with number 03/15.

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    Length: 16
    Date of creation: 01 Jan 2003
    Date of revision:
    Handle: RePEc:imf:imfwpa:03/15

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    Related research

    Keywords: Asia; Productivity; Economic growth; Information technology; growth accounting; gdp growth; technological change; information and communication technology; data source; communication technology; gdp growth rate; growth rate; ict goods; technologies; gdp deflator; real gdp; new technology;

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    1. Francesco Daveri, . "Is Growth an Information Technology Story in Europe Too?," EPRU Working Paper Series 00-12, Economic Policy Research Unit (EPRU), University of Copenhagen. Department of Economics.
    2. Andrea Bassanini & Stefano Scarpetta & Ignazio Visco, 2000. "Knowledge, Technology and Economic Growth: Recent Evidence from OECD Countries," OECD Economics Department Working Papers 259, OECD Publishing.
    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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    Cited by:
    1. Chee Kong Wong, 2004. "Information Technology, Productivity and Economic Growth in China," Economics Discussion / Working Papers 04-21, The University of Western Australia, Department of Economics.
    2. Benjamin David, 2012. "Modélisation non-linéaire de l'impact des TIC sur la productivité du travail," EconomiX Working Papers 2012-51, University of Paris West - Nanterre la Défense, EconomiX.
    3. Elsadig Ahmed, 2010. "Information and Communications Technology Effects on East Asian Productivity," Journal of the Knowledge Economy, Springer, vol. 1(3), pages 191-201, September.
    4. Christine Zhen-Wei Qiang & Alexander Pitt & Seth Ayers, 2004. "Contribution of Information and Communication Technologies to Growth," World Bank Publications, The World Bank, number 15059, October.
    5. Piatkowski, Marcin, 2004. "The Impact of ICT on Growth in Transition Economies," MPRA Paper 29399, University Library of Munich, Germany.
    6. Abdur Chowdhury, 2003. "Information technology and productivity payoff in the banking industry: evidence from the emerging markets," Journal of International Development, John Wiley & Sons, Ltd., vol. 15(6), pages 693-708.

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