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The roles of electricity and ICT in economic growth: Case Finland

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  • Jalava, Jukka
  • Pohjola, Matti

Abstract

A quantitative look is taken at electricity and ICT as the engines of economic growth in Finland which was one of the leading countries in the electrification of mechanical drive in industry and which today is one of the leading information societies. It is shown that ICT's contribution to GDP growth in 1990-2004 was three times as large as electricity's contribution in 1920-1938. The improvement of multi-factor productivity in production accounted for 60% of ICT's contribution but only one third of electricity's. Electricity's growth contribution was smaller but ICT's larger than in the United States.

Suggested Citation

  • Jalava, Jukka & Pohjola, Matti, 2008. "The roles of electricity and ICT in economic growth: Case Finland," Explorations in Economic History, Elsevier, vol. 45(3), pages 270-287, July.
  • Handle: RePEc:eee:exehis:v:45:y:2008:i:3:p:270-287
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    References listed on IDEAS

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    Cited by:

    1. Derya Fındık & Aysıt Tansel, 2013. "Intangible investment and Technical efficiency: The case of software-intensive manufacturing firms in Turkey," EY International Congress on Economics I (EYC2013), October 24-25, 2013, Ankara, Turkey 235, Ekonomik Yaklasim Association.
    2. Ronald Kumar & Madhukar Singh, 2014. "Role of health expenditure and ICT in a small island economy: a study of Fiji," Quality & Quantity: International Journal of Methodology, Springer, vol. 48(4), pages 2295-2311, July.
    3. repec:spr:cliomt:v:12:y:2018:i:1:d:10.1007_s11698-016-0149-2 is not listed on IDEAS
    4. Hong, Jae-pyo, 2017. "Causal relationship between ICT R&D investment and economic growth in Korea," Technological Forecasting and Social Change, Elsevier, vol. 116(C), pages 70-75.
    5. Ronald Ravinesh Kumar & Radika Kumar, 2012. "Exploring sectoral elasticity vis-à-vis per worker income with a focus to agriculture: a study of Sub-Saharan Africa," African Journal of Economic and Sustainable Development, Inderscience Enterprises Ltd, vol. 1(1), pages 27-48.
    6. Heinrich, Torsten, 2015. "Growth Cycles, Network Effects, and Intersectoral Dependence: An Agent-Based Model and Simulation Analysis," MPRA Paper 79575, University Library of Munich, Germany, revised 08 Jun 2017.
    7. Ronald Kumar, 2014. "Exploring the role of technology, tourism and financial development: an empirical study of Vietnam," Quality & Quantity: International Journal of Methodology, Springer, vol. 48(5), pages 2881-2898, September.
    8. Kumar, Ronald R., 2011. "Role of Financial and Technology Inclusion, Remittances and Exports vis-à-vis growth: A study of Nepal," MPRA Paper 38850, University Library of Munich, Germany, revised 17 May 2012.
    9. Jalava, Jukka & Kavonius, Ilja Kristian, 2008. "The effect of durable goods and ICT on euro area productivity growth?," Working Paper Series 940, European Central Bank.
    10. repec:spr:jknowl:v:8:y:2017:i:3:d:10.1007_s13132-015-0276-1 is not listed on IDEAS
    11. Frederico Cruz-Jesus & Tiago Oliveira & Fernando Bacao & Zahir Irani, 0. "Assessing the pattern between economic and digital development of countries," Information Systems Frontiers, Springer, vol. 0, pages 1-20.
    12. Llopis, Maria Teresa Sanchis, 2016. "Did electricity drive Spain’s “most progressive decade”?," CAGE Online Working Paper Series 309, Competitive Advantage in the Global Economy (CAGE).
    13. Ronald Ravinesh Kumar & Peter Josef Stauvermann & Syed Jawad Hussain Shahzad, 2017. "Can technology provide a glimmer of hope for economic growth in the midst of chaos? A case of Zimbabwe," Quality & Quantity: International Journal of Methodology, Springer, vol. 51(2), pages 919-939, March.
    14. repec:spr:infosf:v:19:y:2017:i:4:d:10.1007_s10796-016-9634-1 is not listed on IDEAS
    15. Antonin Bergeaud & Gilbert Cette & Rémy Lecat, 2018. "The role of production factor quality and technology diffusion in twentieth-century productivity growth," Cliometrica, Springer;Cliometric Society (Association Francaise de Cliométrie), vol. 12(1), pages 61-97, January.
    16. Derya Findik & Aysit Tansel, 2015. "​ Intangible Investment and Technical Efficiency: The Case of Software-Intensive Manufacturing Firms in Turkey," Working Papers 2015/11, Turkish Economic Association.
    17. Toivanen, Otto, 2009. "Innovation Policy, Entrepreneurship, and Development: A Finnish View," MERIT Working Papers 050, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    18. Tai-Yoo Kim & Jihyoun Park & Eungdo Kim & Junseok Hwang, 2011. "The Faster-Accelerating Digital Economy," TEMEP Discussion Papers 201173, Seoul National University; Technology Management, Economics, and Policy Program (TEMEP), revised Apr 2011.
    19. A. Bergeaud & G. Cette & R. Lecat, 2016. "The role of production factor quality and technology diffusion in 20th century productivity growth," Working papers 588, Banque de France.

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