The Effect of Information Technology and Human Capital on Economic Growth
AbstractIn this paper we compare the impact of hardware, software and com munication equipments, widely referred to as information and communication technologies (ICT) on economic growth among the advanced industrialized countries. We use nonparametric techniques that allow us to directly estimate the elasticity of ICT and human capital for each country and time period. We also examine whether the nonlinear relationship between human capital and growth, found in the literature, still persists in the presence of ICT e¤ects. The data covers the period from 1980-2004, for a range of OECD countries and the results indicate that there exist a nonlinear relationship between ICT and productivity along with a nonlinear relationship between human capital and productivity. Additionally, we observe that in high levels of ICT capital the output elasticities of human capital are larger and the more educated workers in a country the higher are the output elasticities of ICT.
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Bibliographic InfoPaper provided by The Rimini Centre for Economic Analysis in its series Working Paper Series with number 03-07.
Date of creation: Jul 2007
Date of revision: Jul 2007
Other versions of this item:
- Ketteni, Elena & Mamuneas, Theofanis & Stengos, Thanasis, 2011. "The Effect Of Information Technology And Human Capital On Economic Growth," Macroeconomic Dynamics, Cambridge University Press, vol. 15(05), pages 595-615, November.
- NEP-ALL-2007-09-09 (All new papers)
- NEP-EDU-2007-09-09 (Education)
- NEP-HRM-2007-09-09 (Human Capital & Human Resource Management)
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