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Is Growth an Information Technology Story in Europe Too?

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Francesco Daveri

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Abstract

While the return to growth in the US is largely credited to the rapid spreading of information technology, a key policy concern everywhere, and notably in Europe, is whether and when the US economic boom will extend abroad, and what role new technologies are about to play. In this paper, I collect and supplement data on the extent and the contribution to growth of ‘new economy’ activities in Europe, and in a sample of OECD countries at large, in the 1990s. Available evidence indicates that capital accumulation in information technologies did make a contribution to growth in the EU too, though not equally everywhere. The contribution of new technologies was substantial in the UK and the Netherlands, and rapidly increasing over time in Finland, Ireland and Denmark. These were also the fast EU growing countries in the 1990s. New technologies contributed less in France, Germany, Belgium and Sweden, and marginally in Italy and Spain. Most of these countries were also ‘slow growers’. I conclude that the growth gaps between the EU and the US, as well as within the EU, can (also) be associated to the diverse pace of adoption of new technologies across countries.

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Paper provided by Economic Policy Research Unit (EPRU), University of Copenhagen. Department of Economics in its series EPRU Working Paper Series with number 00-12.

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Handle: RePEc:kud:epruwp:00-12

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  1. Slevin, Geraldine, 2002. "Is There a "New Economy" in Ireland?," Research Technical Papers 3/RT/02, Central Bank & Financial Services Authority of Ireland (CBFSAI). [Downloadable!]
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  4. Nicholas Oulton, . "ICT and productivity growth in the United Kingdom," Bank of England working papers 140, Bank of England. [Downloadable!]
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  5. Plutarchos Sakellaris & Focco W. Vijselaar, 2004. "Capital quality improvement and the sources of growth in the euro area," Working Paper Series 368, European Central Bank. [Downloadable!]
  6. Meijers,Huub & Hollanders,Hugo, 2003. "Sources of Growth: Measuring the Knowledge Based Economy," Research Memoranda 032, Maastricht : MERIT, Maastricht Economic Research Institute on Innovation and Technology. [Downloadable!]
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  9. Barry P. Bosworth & Jack E. Triplett, 2001. "What's New About the New Economy? IT, Economic Growth and Productivity," International Productivity Monitor, Centre for the Study of Living Standards, vol. 2, pages 19-30, Spring. [Downloadable!]
  10. 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. [Downloadable!]
  11. A. Houben & J. Kakes, 2001. "Fostering the `New Economy': the role of financial intermediation," MEB Series (discontinued) 2001-7, Netherlands Central Bank, Monetary and Economic Policy Department. [Downloadable!]
  12. Hannes Leo, 2001. "ICT Investment and Growth of Output and Productivity," WIFO Working Papers 162, WIFO. [Downloadable!]
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  13. Jake Kendall & Nirvikar Singh, 2006. "Internet Kiosks in Rural India: What Influences Success?," Working Papers 06-05, NET Institute, revised Sep 2006. [Downloadable!]
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  14. Argandoña, Antonio, 2001. "Nueva economía y el crecimiento económico, La," IESE Research Papers D/437, IESE Business School. [Downloadable!]
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