Using a new set of industry data for the US and the UK and an appropriate econometric approach, this paper provides new evidence on the impact of Information and Communication Technology (ICT) on Total Factor Productivity (TFP). We compare the results from standard panel data techniques with an heterogeneous dynamic panel data estimation method. The traditional industry panel data analysis fails to find a positive impact of ICT on output/TFP growth. This paper argues that this is due to heterogeneity across industries, particularly in the time dimension. The alternative technique we use, which allows for industry specific dynamics, yields a positive and significant long-run impact of ICT on TFP.
Download Info
To download:
If you experience problems downloading a file, check if you have the
proper application to
view it first. Information about this may be contained
in the File-Format links below. In case of further problems read
the IDEAS help
page. Note that these files are not on the IDEAS
site. Please be patient as the files may be large.
Publisher Info
Paper provided by National Institute of Economic and Social Research in its series NIESR Discussion Papers with number
219.
Cited by: (explanations, 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.)