Advanced Search
MyIDEAS: Login to save this paper or follow this series

Information Technology, Productivity and Economic Growth in China

Contents:

Author Info

  • Chee Kong Wong

    (UWA Business School, The University of Western Australia)

Registered author(s):

    Abstract

    This paper presents an empirical assessment of the “New Economy” in China, drawing upon the linkage between information technology (IT) and economic growth. The aim of this paper is to interpret China’s economic growth from a perspective which emphasizes IT as a factor in economic growth. While the explosive growth of IT investment in the developed economies and its contribution to GDP and labour productivity growth has already been extensively researched, there has been little research on China, which is one of the world’s largest IT markets. The primary objective of this paper is to examine the sources of China’s economic growth with particular emphasis on the contribution of IT capital for the period of 1984-2001. The paper addresses whether growth in China over this period can be explained by factor accumulation or technological progress. To account for the contribution from factor accumulation, the paper employs the neoclassical production function model that will segregate IT capital from other forms of capital as an input to production. With the introduction of IT capital, the paper attempts to reduce the possible “vagueness” and omission bias of total factor productivity (TFP) growth of the neoclassical model in analysing the sources of growth in China. In addition, a key contribution of this paper is the estimation of China’s IT capital stock, which has not been investigated previously. Preliminary empirical findings on the contribution of factor inputs to China’s economic growth in 1984-2001 suggest that IT capital contributes about 30% of the economic growth rate.

    Download Info

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
    File URL: http://www.biz.uwa.edu.au/home/research/discussionworking_papers/economics/2004?f=151011
    Download Restriction: no

    Bibliographic Info

    Paper provided by The University of Western Australia, Department of Economics in its series Economics Discussion / Working Papers with number 04-21.

    as in new window
    Length: 27 pages
    Date of creation: 2004
    Date of revision:
    Handle: RePEc:uwa:wpaper:04-21

    Contact details of provider:
    Postal: 35 Stirling Highway, Crawley, W.A. 6009
    Phone: (08) 9380 2918
    Fax: (08) 9380 1016
    Web page: http://www.business.uwa.edu.au/school/disciplines/economics
    More information through EDIRC

    Related research

    Keywords: Information technology (IT); TFP; average labour productivity (ALP); IT capital; China.;

    Find related papers by JEL classification:

    References

    References listed on IDEAS
    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.:
    as in new window
    1. Kevin J. Stiroh & Dale W. Jorgenson, 1999. "Information Technology and Growth," American Economic Review, American Economic Association, vol. 89(2), pages 109-115, May.
    2. Pohjola, Matti, 2002. "The New Economy: facts, impacts and policies," Information Economics and Policy, Elsevier, vol. 14(2), pages 133-144, June.
    3. Kevin J. Stiroh, 2002. "Information Technology and the U.S. Productivity Revival: What Do the Industry Data Say?," American Economic Review, American Economic Association, vol. 92(5), pages 1559-1576, December.
    4. John Wong & Wong Chee Kong, 2004. "China's Software Industry: Moving on the Fast Track," Journal of Chinese Economic and Business Studies, Taylor & Francis Journals, vol. 2(1), pages 73-95.
    5. Dale W. Jorgenson, 2001. "Information Technology and the U. S. Economy," Harvard Institute of Economic Research Working Papers 1911, Harvard - Institute of Economic Research.
    6. Meng, Qingxuan & Li, Mingzhi, 2002. "New Economy and ICT development in China," Information Economics and Policy, Elsevier, vol. 14(2), pages 275-295, June.
    7. Il Houng Lee & Yougesh Khatri, 2003. "Information Technology and Productivity Growth in Asia," IMF Working Papers 03/15, International Monetary Fund.
    8. Kevin J. Stiroh, 2001. "Investing in information technology: productivity payoffs for U.S. industries," Current Issues in Economics and Finance, Federal Reserve Bank of New York, vol. 7(Jun).
    9. Yan Wang & Yudong Yao, 2001. "Sources of China's economic growth, 1952-99 : incorporating human capital accumulation," Policy Research Working Paper Series 2650, The World Bank.
    10. Dale W. Jorgenson & Kevin J. Stiroh, 2000. "Raising the Speed Limit: US Economic Growth in the Information Age," OECD Economics Department Working Papers 261, OECD Publishing.
    11. Paul Schreyer, 2000. "The Contribution of Information and Communication Technology to Output Growth: A Study of the G7 Countries," OECD Science, Technology and Industry Working Papers 2000/2, OECD Publishing.
    12. Dale W. Jorgenson, 2001. "Information Technology and the U.S. Economy," American Economic Review, American Economic Association, vol. 91(1), pages 1-32, March.
    13. Jalava, Jukka & Pohjola, Matti, 2002. "Economic growth in the New Economy: evidence from advanced economies," Information Economics and Policy, Elsevier, vol. 14(2), pages 189-210, June.
    14. Oliner, Stephen D. & Sichel, Daniel E., 2003. "Information technology and productivity: where are we now and where are we going?," Journal of Policy Modeling, Elsevier, vol. 25(5), pages 477-503, July.
    15. Jorgenson, Dale W. & Ho, Mun S. & Stiroh, Kevin J., 2003. "Lessons from the US growth resurgence," Journal of Policy Modeling, Elsevier, vol. 25(5), pages 453-470, July.
    16. Stephen D. Oliner & Daniel E. Sichel, 2000. "The resurgence of growth in the late 1990s: is information technology the story?," Proceedings, Federal Reserve Bank of San Francisco.
    17. John Simon & Sharon Wardrop, 2002. "Australian Use of Information Technology and its Contribution to Growth," RBA Research Discussion Papers rdp2002-02, Reserve Bank of Australia.
    18. Wang, Yan & Yao, Yudong, 2003. "Sources of China's economic growth 1952-1999: incorporating human capital accumulation," China Economic Review, Elsevier, vol. 14(1), pages 32-52.
    19. Dean Parham & Paul Roberts & Haishun Sun, 2001. "Information Technology and Australia’s Productivity Surge," Development and Comp Systems 0110006, EconWPA.
    20. Benoît Robidoux & Bing-Sun Wong, 2003. "Has Trend Productivity Growth Increased in Canada?," International Productivity Monitor, Centre for the Study of Living Standards, vol. 6, pages 47-55, Spring.
    Full references (including those not matched with items on IDEAS)

    Citations

    Lists

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    Statistics

    Access and download statistics

    Corrections

    When requesting a correction, please mention this item's handle: RePEc:uwa:wpaper:04-21. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Shane Standley).

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.