ICT Stochastic Externalities and Growth: Missed Opportunities, Beyond Sustainability or What?
AbstractIn this paper we present an analysis of the OECD production process and consider the ICT as driver of growth. In doing so the production function approach adopted underlines the externalities exploited or not and, possibly, when the production process overpasses the countries capacities implied by the technical parameters. In line with the general purpose theory such externalities are attributed to ICT. Business services are relevant as a vehicle to better exploit the innovative capital embedded in the production process. We develop and implement a methodology for the evaluation of the different effects on growth related to ICT. Our main conclusion is that even if a competitive solution is viable there are possible, though small, margins for a sustained growth in the long run for the OECD countries considered. We also point out some conclusions on the capital and labour shares showing that the latter is too small both in the long and short run.
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Bibliographic InfoPaper provided by Centre for Empirical Economics and Econometrics, Department of Statistics, "Sapienza" University of Rome in its series DSS Empirical Economics and Econometrics Working Papers Series with number 2014/4.
Length: 22 pages
Date of creation: May 2014
Date of revision:
Growth and externalities; ICT; Technology; Business Services; Panel Data Econometrics;
Find related papers by JEL classification:
- C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
- 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
- D62 - Microeconomics - - Welfare Economics - - - Externalities
This paper has been announced in the following NEP Reports:
- NEP-ALL-2014-05-24 (All new papers)
- NEP-ICT-2014-05-24 (Information & Communication Technologies)
- NEP-ORE-2014-05-24 (Operations Research)
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.:
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