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The Contribution of ICT Investment to Economic Growth and Labor Productivity in Poland 1995-2000

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Author Info

  • Marcin Piatkowski

    (TIGER - Transformation Integration and Globalization Economic Research)

Abstract

There is large evidence on a positive impact of information and communication technologies (ICT) on economic growth and productivity in a number of developed countries in the 1990’s. There are however no studies, which would estimate the contribution of ICT to growth and productivity in post-communist, transition economies. Data availability, consistency, and trustworthiness have been so far the main obstacles. This paper makes a first attempt, based on an extended growth accounting framework, at estimating the contribution of investment in ICT to output growth and labor productivity in Poland, the largest post-communist economy in Central and Eastern Europe and a prospective member of the EU (2004). The paper discusses the challenges of using available data and its impact on the choice of specific methodologies. The paper shows that ICT investment contributed on average 0.47 of a percentage point or 8.9% of GDP growth and 12.7% or 0.65 of a percentage point contribution to labor productivity between 1995-2000. This relatively large impact of ICT capital is due to an extraordinary acceleration in ICT investments between 1993-2001 induced by – one the one hand – rapidly falling prices of ICT products and services and – on the other hand – large demand for ICT fueled by high economic growth in the 1990’s and substantial pent-up demand due to infrastructural underinvestment in ICT.

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File URL: http://128.118.178.162/eps/dev/papers/0308/0308002.pdf
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Bibliographic Info

Paper provided by EconWPA in its series Development and Comp Systems with number 0308002.

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Length: 23 pages
Date of creation: 25 Aug 2003
Date of revision:
Handle: RePEc:wpa:wuwpdc:0308002

Note: Type of Document - ; prepared on IBM PC - PC-TEX; to print on HP/PostScript/Franciscan monk; pages: 23; figures: included
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Web page: http://128.118.178.162

Related research

Keywords: economic growth; growth accounting; information technology; post-communist countries;

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Cited by:
  1. Ljiljana Lovric, 2012. "Information-communication technology impact on labor productivity growth of EU developing countries," Zbornik radova Ekonomskog fakulteta u Rijeci/Proceedings of Rijeka Faculty of Economics, University of Rijeka, Faculty of Economics, vol. 30(2), pages 223-245.
  2. Marcin Piatkowski, 2004. "Does ICT Investment Matter for Growth and Labor Productivity in Transition Economies?," Development and Comp Systems, EconWPA 0402008, EconWPA.
  3. Diana Mihaela Apostol & Cristina Balaceanu, 2011. "Growth and Technology: The New Economy in the 2000's CEE Countries and Romania," International Journal of Academic Research in Accounting, Finance and Management Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Accounting, Human Resource Management Academic Research Society, International Journal of Academic Research in Accounting, Finance and Management Sciences, vol. 1(2), pages 46-55, December.
  4. Burak Karagöl & Erkan Erdil, 2012. "Macroeconomic Effects of Information and Communication Technologies in Turkey and Other OECD Member Countries," STPS Working Papers, STPS - Science and Technology Policy Studies Center, Middle East Technical University 1205, STPS - Science and Technology Policy Studies Center, Middle East Technical University, revised May 2012.

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