Durable Goods and ICT: The Drivers of Euro Area Productivity growth?

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Durable Goods and ICT: The Drivers of Euro Area Productivity growth?

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Jukka Jalava
Ilja Kristian Kavonius

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Abstract

ABSTRACT : The purpose of this paper is to estimate the effect of durable goods and ICT on Euro Area economic growth and productivity change; when expenditure on consumer durables is recorded as capital investment. The capitalization of consumer durables impacts both the levels and growth rates of the capital stock, productivity and GDP. Our growth accounting computations demonstrated that the capital services of durables contributed one-tenth of economic growth and one-eight of labour productivity growth in 1995-2004. ICT´s impacts were larger, i.e., one-fifth of GVA growth and one-sixth of labour productivity growth.

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Paper provided by The Research Institute of the Finnish Economy in its series Discussion Papers with number 1132.

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Length: 18 pages
Date of creation: 23 Apr 2008
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Handle: RePEc:rif:dpaper:1132

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Find related papers by JEL classification:
E13 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - Neoclassical
E21 - Macroeconomics and Monetary Economics - - Macroeconomics: Consumption, Saving, Production, Employment, and Investment - - - Consumption; Saving; Wealth
E22 - Macroeconomics and Monetary Economics - - Macroeconomics: Consumption, Saving, Production, Employment, and Investment - - - Capital; Investment; Capacity
O11 - Economic Development, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
O47 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Measurement of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
O52 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - Europe

This paper has been announced in the following NEP Reports:

NEP-ALL-2008-05-05 (All new papers)
NEP-EEC-2008-05-05 (European Economics)
NEP-EFF-2008-05-05 (Efficiency & Productivity)
NEP-MAC-2008-05-05 (Macroeconomics)

Cited by:
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Mika Maliranta & Petri Rouvinen & Aarno Airaksinen, 2008. "IT Outsourcing in Finnish Business," Discussion Papers 1140, The Research Institute of the Finnish Economy. [Downloadable!]

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This page was last updated on 2008-10-4.

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.