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ICT AND EUROPE's PRODUCTIVITY PERFORMANCE: INDUSTRY‐LEVEL GROWTH ACCOUNT COMPARISONS WITH THE UNITED STATES

Author

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  • Robert Inklaar
  • Mary O'Mahony
  • Marcel Timmer

Abstract

In this paper we present a new industry‐level database to analyze sources of growth in four major European countries: France, Germany, Netherlands and the United Kingdom (EU‐4), in comparison with the United States for the period 1979–2000. Aggregate labor productivity growth is decomposed into industry‐level contributions of labor quality, ICT and non‐ICT capital deepening and TFP. A small set of service industries is mainly responsible for the acceleration in ICT capital deepening in both regions, but their contribution to growth is lower in the EU‐4 than in the U.S. TFP in these ICT‐intensive services accelerated in the U.S. in the 1990s, but not in Europe. In addition, widespread deceleration in non‐ICT capital deepening in the EU‐4 has led to a European labor productivity slowdown.

Suggested Citation

  • Robert Inklaar & Mary O'Mahony & Marcel Timmer, 2005. "ICT AND EUROPE's PRODUCTIVITY PERFORMANCE: INDUSTRY‐LEVEL GROWTH ACCOUNT COMPARISONS WITH THE UNITED STATES," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 51(4), pages 505-536, December.
    • Handle: RePEc:bla:revinw:v:51:y:2005:i:4:p:505-536
    DOI: 10.1111/j.1475-4991.2005.00166.x
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