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ICT Investment and Productivity: A Provincial Perspective

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  • Andrew Sharpe

    ()

  • Jean-François Arsenault

    ()

Abstract

In 2008, Statistics Canada, for the first time, made available estimates of information and communication technology (ICT) investment by province. Given the importance of ICT investment for productivity growth, these data are important for the comparative analysis and understanding of productivity growth by province. The objective of this report is to present the basic data on ICT investment and ICT investment per worker in Canada and the ten provinces over the 1981-2007 period. The first part of the report reviews the literature on why ICT investment is important for productivity. The second part examines ICT investment levels and trends by province. The third part decomposes the gap in ICT investment per worker by province, relative to the national average, into three effects: that related to income levels, to the total investment/GDP share, and to the ICT investment/total investment share.

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Bibliographic Info

Paper provided by Centre for the Study of Living Standards in its series CSLS Research Reports with number 2008-06.

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Date of creation: Sep 2008
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Handle: RePEc:sls:resrep:0806

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Related research

Keywords: Machinery and equipment investment; information and communications technology; ICT; Investment gap; Business sector; Provincial estimates;

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  1. Xavier Sala-i-Martin, 1997. "I just ran four million regressions," Economics Working Papers 201, Department of Economics and Business, Universitat Pompeu Fabra.
  2. Michael Gort & Jeremy Greenwood & Peter Rupert, 1999. "Measuring the Rate of Technological Progress in Structures," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 2(1), pages 207-230, January.
  3. Robert J. Gordon, 2003. "Hi-tech Innovation and Productivity Growth: Does Supply Create Its Own Demand?," NBER Working Papers 9437, National Bureau of Economic Research, Inc.
  4. Paul M Romer, 1999. "Increasing Returns and Long-Run Growth," Levine's Working Paper Archive 2232, David K. Levine.
  5. Tahir Abdi, 2008. "Machinery & equipment investment and growth: evidence from the Canadian manufacturing sector," Applied Economics, Taylor & Francis Journals, vol. 40(4), pages 465-478.
  6. Susanto Basu & John G. Fernald & Nicholas Oulton & Sylaja Srinivasan, 2003. "The Case of the Missing Productivity Growth: Or, Does Information technology explain why productivity accelerated in the United States but not the United Kingdom?," Harvard Institute of Economic Research Working Papers 2021, Harvard - Institute of Economic Research.
  7. Hossein Jalilian & Matthew Odedokun, 2000. "Equipment and non-equipment private investment: a generalized Solow model," Applied Economics, Taylor & Francis Journals, vol. 32(3), pages 289-296.
  8. Lee, Jong-Wha, 1995. "Capital goods imports and long-run growth," Journal of Development Economics, Elsevier, vol. 48(1), pages 91-110, October.
  9. Lucas, Robert Jr., 1988. "On the mechanics of economic development," Journal of Monetary Economics, Elsevier, vol. 22(1), pages 3-42, July.
  10. Paul M. Romer, 1987. "Crazy Explanations for the Productivity Slowdown," NBER Chapters, in: NBER Macroeconomics Annual 1987, Volume 2, pages 163-210 National Bureau of Economic Research, Inc.
  11. J. Bradford DeLong & Lawrence H. Summers, 1992. "Equipment Investment and Economic Growth: How Strong Is the Nexus?," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 23(2), pages 157-212.
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