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The Productivity Paradox and the New Economy: The Spanish Case

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Author Info
Jesús Rodríguez López () (Department of Economics, Universidad Pablo de Olavide)
Diego Martínez López () (Department of Economics, Universidad Pablo de Olavide)
José Luis Torres Chacón () (Departamento de Teoría e Historia Económica, Universidad de Málaga)

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Abstract

This paper studies the impact of the information and communication technologies (ICT) on economic growth in Spain using a dynamic general equilibrium approach. Contrary to previous works, we use a production function with six different capital inputs, three of them corresponding to ICT assets. Calibration of the model suggests that the contribution of ICT to Spanish productivity growth is very relevant, whereas the contribution of non-ICT capital has been even negative. Additionally, over the sample period 1995-2002, we find a negative TFP and productivity growth. These results together aim at the hypothesis that the Spanish economy could be placed within the productivity paradox.

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File URL: http://www.upo.es/serv/bib/wps/econ0701.pdf
File Format: application/pdf
File Function: First version, 2007
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Publisher Info
Paper provided by Universidad Pablo de Olavide, Departamento de Economía in its series Working Papers with number 07.01.

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Length: 23 pages
Date of creation: Jan 2007
Date of revision:
Handle: RePEc:pab:wpaper:07.01

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Related research
Keywords: New economy information and communication technologies technological change productivity paradox.

Find related papers by JEL classification:
E22 - Macroeconomics and Monetary Economics - - Macroeconomics: Consumption, Saving, Production, Employment, and Investment - - - Capital; Investment; Capacity
O30 - Economic Development, Technological Change, and Growth - - Technological Change - - - General
O40 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General

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