This file is part of IDEAS, which uses RePEc data


[ Papers | Articles | Software | Books | Chapters | Authors | Institutions | JEL Classification | NEP reports | Search | New papers by email | Author registration | Rankings | Volunteers | FAQ | Blog | Help! ]

Australian Use of Information Technology and its Contribution to Growth

Author info | Abstract | Publisher info | Download info | Related research | Statistics
Author Info
John Simon (Reserve Bank of Australia)
Sharon Wardrop (Reserve Bank of Australia)

Additional information is available for the following registered author(s):

Abstract

This paper investigates the gains from the use of information technology in Australia during the 1990s using a growth accounting framework. We make use of new industry-level estimates of the productive capital stock. Our analysis suggests that Australia has done well out of the 'new economy'. Its use of computer technology is amongst the highest in the world with Australian business investment in computer and related equipment growing rapidly since the early 1990s. Computer use has not been uniform throughout the economy but concentrated in more service-oriented sectors such as telecommunications, and finance and insurance. Additionally, we find that around one-half of the gains from the use of information technology can be attributed to price falls while the other half can be attributed to higher nominal expenditure. We arrive at the conclusion that Australia has experienced significant output growth related to computer use and has benefited from the technological advances in the sector through lower prices passed on to users. Thus, we conclude that there are substantial benefits to be gained from being a net user of computers as well as the more commonly mentioned benefits from being a producer.

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 file. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL: http://www.rba.gov.au/rdp/RDP2002-02.pdf
File Format: application/pdf
File Function:
Download Restriction: no

Publisher Info
Paper provided by Reserve Bank of Australia in its series RBA Research Discussion Papers with number rdp2002-02.

Download reference. The following formats are available: HTML, plain text, BibTeX, RIS (EndNote), ReDIF
Length:
Date of creation: Jan 2002
Date of revision:
Handle: RePEc:rba:rbardp:rdp2002-02

Contact details of provider:
Postal: GPO Box 3947, Sydney NSW 2001
Phone: 61-2-9551-8111
Fax: 61-2-9551-8000
Email:
Web page: http://www.rba.gov.au/
More information through EDIRC

Order Information:
Web: http://www.rba.gov.au/PublicationsAndResearch/RDP/RDP_Order/index.html

For technical questions regarding this item, or to correct its listing, contact: (Kylie Lowe).

Related research
Keywords: Australia growth accounting information technology productivity

Find related papers by JEL classification:
D24 - Microeconomics - - Production and Organizations - - - Production; Capital and Total Factor Productivity; Capacity
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
O33 - Economic Development, Technological Change, and Growth - - Technological Change - - - Technological Change: Choices and Consequences; Diffusion Processes
O47 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Measurement of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence

This paper has been announced in the following NEP Reports:

References listed on IDEAS
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.:
  1. Karl Whelan, 2000. "Computers, obsolescence, and productivity," Finance and Economics Discussion Series 2000-06, Board of Governors of the Federal Reserve System (U.S.). [Downloadable!]
    Other versions:
  2. Michael T. Kiley, 1999. "Computers and growth with costs of adjustment: will the future look like the past?," Finance and Economics Discussion Series 1999-36, Board of Governors of the Federal Reserve System (U.S.). [Downloadable!]
  3. Dale W. Jorgenson & Kevin J. Stiroh, 2000. "Raising the Speed Limit: US Economic Growth in the Information Age," OECD Economics Department Working Papers 261, OECD Economics Department. [Downloadable!]
    Other versions:
  4. Stephen D. Oliner & Daniel E. Sichel, 1994. "Computers and Output Growth Revisited: How Big Is the Puzzle?," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 25(1994-2), pages 273-334. [Downloadable!]
  5. Robert J. Gordon, 1999. "U.S. Economic Growth since 1870: One Big Wave?," American Economic Review, American Economic Association, vol. 89(2), pages 123-128, May. [Downloadable!] (restricted)
  6. Casey Cornwell & Bharat Trehan, 2000. "Information technology and productivity," FRBSF Economic Letter, Federal Reserve Bank of San Francisco, issue Nov. 10. [Downloadable!]
Full references

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.)

  1. Yuan K. Chou, 2002. "The Australian Growth Experience (1960-2000): R&D-Based, Human Capital-Based, Or Just Steady State Growth?," Department of Economics - Working Papers Series 855, The University of Melbourne. [Downloadable!]
  2. Dean Parham & Paul Roberts & Haishun Sun, 2001. "Information Technology and Australia’s Productivity Surge," Development and Comp Systems 0110006, EconWPA. [Downloadable!]
  3. Matthew D Shapiro, 2003. "Has the rate of economic growth changed? Evidence and lessons for public policy," Reserve Bank of New Zealand Discussion Paper Series DP2003/07, Reserve Bank of New Zealand. [Downloadable!]
  4. Karunaratne, Neil Dias, 2006. "The New Economy and the Dollar Puzzle," Economic Analysis and Policy (EAP), Queensland University of Technology (QUT), School of Economics and Finance, vol. 36(1-2), pages 25-43, March/Sep. [Downloadable!]
  5. 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. [Downloadable!]
Statistics
Access and download statistics

Did you know? Each page is provided with a technical contact, in case something is not right with the supplied information. See under "publisher info".

This page was last updated on 2008-8-3.

This information is provided to you by IDEAS at the Department of Economics, College of Liberal Arts and Sciences, University of Connecticut using RePEc data on a server sponsored by the Society for Economic Dynamics.