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On the ICT Economy in the European Countries: Investigating the Contribution of the ICT Sectors Using the Input-Output Model

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Author Info

  • Rohman, Ibrahim Kholilul
  • Bohlin, Erik

Abstract

Investigating the Contribution of the ICT Sectors Using the Input-Output Model Previous studies have been devoted to investigating the future of economic growth and examining the importance of technology and the ICT sectors in accelerating the growth of the economy. These studies are from a macro perspective that emphasizes the role of infrastructure investment, as well as from the firm level analysis, which is mainly related to cost efficiency. In addition, recent studies of the European countries indicate that the region is now facing a weakening effect regarding the contribution of the knowledge economy, which slows economic growth. This study aims at investigating the contribution of the ICT sectors in driving economic performance in the European economies with a sectoral approach using the Input-Output (IO) methodology. The method measures the contribution of ICT sectors based on the OECD's definition (2009) and decomposing it into several variables. In addition, the study focuses on investigating one decomposition factor related to technological change effects. The results indicate that the growth of ICT sectors' output declined considerably during 2000-2005 compared to 1995-2000. The decomposition analysis found that the ICT sectors have lost the advantage of export and technological change effects. It has also been ascertained that the smaller impact of technological change effects is due to the lack of connection between the ICT sectors and other sectors on the production side. At country level, this analysis consistently explains this phenomenon, especially in Germany and Spain but fails to detect it in France, where the technological change effect remains stable given the lack of connection between ICT sectors and the rest of the economy. --

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Bibliographic Info

Paper provided by International Telecommunications Society (ITS) in its series 21st European Regional ITS Conference, Copenhagen 2010: Telecommunications at new crossroads - Changing value configurations, user roles, and regulation with number 29.

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Date of creation: 2010
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Handle: RePEc:zbw:itse10:29

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Web page: http://www.itseurope.org/

Related research

Keywords: structural change; economic growth; ICT sectors; input-output; multiplier;

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References

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  1. Lars-Hendrik Röller & Leonard Waverman, 1996. "Telecommunications Infrastructure and Economic Development: A Simultaneous Approach," CIG Working Papers FS IV 96-16, Wissenschaftszentrum Berlin (WZB), Research Unit: Competition and Innovation (CIG).
  2. andrea boltho, 2008. "The European economy since 1945: coordinated capitalism and beyond - By Barry J. Eichengreen," Economic History Review, Economic History Society, vol. 61(1), pages 258-259, 02.
  3. Robert J. Barro, 1991. "Economic Growth in a Cross Section of Countries," NBER Working Papers 3120, National Bureau of Economic Research, Inc.
  4. Charles Steindel & Kevin Stiroh, 2001. "Productivity: what is it and why do we care about it?," Staff Reports 122, Federal Reserve Bank of New York.
  5. Sikhanwita Roy & Tuhin Das & Debesh Chakraborty, 2002. "A Study on the Indian Information Sector: An Experiment with Input-Output Techniques," Economic Systems Research, Taylor & Francis Journals, vol. 14(2), pages 107-129.
  6. Erik Brynjolfsson & Lorin M. Hitt, 2000. "Beyond Computation: Information Technology, Organizational Transformation and Business Performance," Journal of Economic Perspectives, American Economic Association, vol. 14(4), pages 23-48, Fall.
  7. Toh Mun Heng & Sandre M. Thangavelu, 2006. "Singapore information sector : a study using input-output table," Development Economics Working Papers 21817, East Asian Bureau of Economic Research.
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Cited by:
  1. Anna Sabadash, 2013. "ICT-induced Technological Progress and Employment: A Literature Review," JRC-IPTS Working Papers on Digital Economy 2013-07, Institute of Prospective Technological Studies, Joint Research Centre.

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