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Ict "Bottlenecks" And The Wealth Of Nations: A Contribution To The Empirics Of Economic Growth

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Leonardo Becchetti
Fabrizio Adriani

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Abstract

The bulk of ICT is made by weightless, implementable and infinitely reproducible knowledge products (such as software and databases) (Quah, 1999) which are vehicled by telephone lines, accessed through internet hosts and processed and exchanged through personal computers.The specification of the labour augmenting factor in the aggregate production function with proxies of the above mentioned factors crucially affecting the diffusion of (non rivalrous and almost non excludable) knowledge products provides interesting answers to some of the open issues in the existing growth literature. The most recent information, even though available for a limited period, shows that telephone lines, personal computers, mobile phones and internet hosts significantly affect levels and growth of income per worker across countries. The result is robust to changes in the econometric specification and in the estimation approach. Exogenous subsample splits find that the ICT-growth link is stronger in OECD countries and in countries with high financial freedom confirming that financial liberalisation plays a crucial role in stimulating ICT innovation and growth.* The paper is part of a CNR research project. We thank M.Bagella, D. Jorgenson, G. Marini, F. Mattesini, L.Paganetto, P.L. Scandizzo for useful comments and suggestions. The usual disclaimer applies.

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Paper provided by Tor Vergata University, CEIS in its series Departmental Working Papers with number 146.

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Date of creation: Apr 2001
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Handle: RePEc:rtv:ceiswp:146

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  1. repec:att:wimass:1919983 is not listed on IDEAS
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  3. Luigi Paganetto & Leonardo Becchetti & David Andres Londono Bedoya, 2000. "Ict Investment, Productivity And Efficiency: Evidence At Firm Level Using A Stochastic Frontier Approach," Departmental Working Papers 126, Tor Vergata University, CEIS. [Downloadable!]
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  4. Alesina, Alberto & Perotti, Roberto, 1994. "The Political Economy of Growth: A Critical Survey of the Recent Literature," World Bank Economic Review, Oxford University Press, vol. 8(3), pages 351-71, September.
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  8. Jonathan Temple, 1999. "The New Growth Evidence," Journal of Economic Literature, American Economic Association, vol. 37(1), pages 112-156, March. [Downloadable!] (restricted)
  9. 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!]
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  11. Persson, Torsten & Tabellini, Guido, 1994. "Is Inequality Harmful for Growth?," American Economic Review, American Economic Association, vol. 84(3), pages 600-621, June. [Downloadable!] (restricted)
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  12. Mankiw, N Gregory & Romer, David & Weil, David N, 1992. "A Contribution to the Empirics of Economic Growth," The Quarterly Journal of Economics, MIT Press, vol. 107(2), pages 407-37, May. [Downloadable!] (restricted)
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  13. King, Robert G & Levine, Ross, 1993. "Finance and Growth: Schumpeter Might Be Right," The Quarterly Journal of Economics, MIT Press, vol. 108(3), pages 717-37, August. [Downloadable!] (restricted)
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  14. Levine, Ross & Renelt, David, 1992. "A Sensitivity Analysis of Cross-Country Growth Regressions," American Economic Review, American Economic Association, vol. 82(4), pages 942-63, September. [Downloadable!] (restricted)
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  15. Perotti, Roberto, 1996. " Growth, Income Distribution, and Democracy: What the Data Say," Journal of Economic Growth, Springer, vol. 1(2), pages 149-87, June.
  16. Islam, Nazrul, 1995. "Growth Empirics: A Panel Data Approach," The Quarterly Journal of Economics, MIT Press, vol. 110(4), pages 1127-70, November. [Downloadable!] (restricted)
  17. S Durlauf & Danny Quah, 1998. "The New Empirics of Economic Growth," CEP Discussion Papers dp0384, Centre for Economic Performance, LSE.
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  1. Michele Bagella & Leonardo Becchetti & Stefano Caiazza, 2002. "Cultures, Finance And Growth," Departmental Working Papers 157, Tor Vergata University, CEIS. [Downloadable!]
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