What Explains the Canada-US ICT Investment Intensity Gap?
AbstractIt is widely recognized that machinery and equipment investment intensity is less in Canada than in the United States. What is less well know is that it is information and communications technology (ICT) investment that largely accounts for this gap. The author documents trends in ICT investment in both Canada and the United States and attempts to explain why ICT investment per worker in the Canadian business sector in 2004 was only 45 per cent of that in the US business sector. While no definitive explanation emerges, among the factors he identifies as playing a role are industrial structure, firm size distribution of employment, the price of labour compared to ICT investment goods, and the underestimation of ICT investment in official statistics.
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Bibliographic InfoPaper provided by Centre for the Study of Living Standards in its series CSLS Research Reports with number 2005-06.
Date of creation: Jun 2005
Date of revision:
Find related papers by JEL classification:
- E22 - Macroeconomics and Monetary Economics - - Macroeconomics: Consumption, Saving, Production, Employment, and Investment - - - Capital; Investment; Capacity
- G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions
- J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
- M00 - Business Administration and Business Economics; Marketing; Accounting - - General - - - General
- O47 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Measurement of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
- Z10 - Other Special Topics - - Cultural Economics - - - General
This paper has been announced in the following NEP Reports:
- NEP-ALL-2006-04-22 (All new papers)
- NEP-FIN-2006-04-22 (Finance)
- NEP-ICT-2006-04-22 (Information & Communication Technologies)
- NEP-INO-2006-04-22 (Innovation)
- NEP-MAC-2006-04-22 (Macroeconomics)
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