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ICT as a source of output and productivity growth in Finland

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  • Jalava, Jukka
  • Pohjola, Matti

Abstract

This paper analyses the impacts of information and communications technology on output and labour productivity growth in Finland in 1995-2005. Information and communications technology (ICT) accounted for 1.87 percentage points of the observed labour productivity growth at the average rate of 2.87 per cent. The contribution from increases in ICT capital intensity was 0.46 percentage points. The rest is attributed to multi-factor productivity growth in ICT production, especially in telecommunications production. The ongoing outsourcing of ICT production to low-wage countries provides a threat to productivity performance in the future. Policy makers should consider where the next wave of productivity growth will come from.

Suggested Citation

  • Jalava, Jukka & Pohjola, Matti, 0. "ICT as a source of output and productivity growth in Finland," Telecommunications Policy, Elsevier, vol. 31(8-9), pages 463-472, September.
  • Handle: RePEc:eee:telpol:v:31:y::i:8-9:p:463-472
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    Citations

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    Cited by:

    1. José Gómez-Barroso & Claudio Feijóo, 2012. "Volition versus feasibility: state aid when aid is looked upon favourably: the broadband example," European Journal of Law and Economics, Springer, vol. 34(2), pages 347-364, October.
    2. Bory Seng, 2010. "The Driving Forces Underlying the Growth of Total Factor Productivity in Cambodia," TEMEP Discussion Papers 201068, Seoul National University; Technology Management, Economics, and Policy Program (TEMEP), revised Oct 2010.
    3. Daoqin TONG & Sandy DALL’ERBA, 2008. "Spatial Disparities In The Chinese Ict Sector: A Regional Analysis," Region et Developpement, Region et Developpement, LEAD, Universite du Sud - Toulon Var, vol. 28, pages 111-129.
    4. 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.
    5. Carmignani, Fabrizio & Mandeville, Thomas, 2014. "Never been industrialized: A tale of African structural change," Structural Change and Economic Dynamics, Elsevier, vol. 31(C), pages 124-137.
    6. Szalavetz, Andrea, 2007. "Műszaki fejlődés és tőkeintenzitás
      [Technological progress and capital intensity]
      ," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(2), pages 184-198.
    7. Burak Karagöl & Erkan Erdil, 2012. "Macroeconomic Effects of Information and Communication Technologies in Turkey and Other OECD Member Countries," STPS Working Papers 1205, STPS - Science and Technology Policy Studies Center, Middle East Technical University, revised May 2012.
    8. Ceccobelli, M. & Gitto, S. & Mancuso, P., 2012. "ICT capital and labour productivity growth: A non-parametric analysis of 14 OECD countries," Telecommunications Policy, Elsevier, vol. 36(4), pages 282-292.
    9. Vu, Khuong M., 2013. "Information and Communication Technology (ICT) and Singapore’s economic growth," Information Economics and Policy, Elsevier, vol. 25(4), pages 284-300.
    10. Daniel Lind, 2008. "ICT Production and Productivity in Sweden and Finland, 1975-2004," International Productivity Monitor, Centre for the Study of Living Standards, vol. 17, pages 40-51, Fall.
    11. Esteban Alfaro Cortés & José-Luis Alfaro Navarro, 2011. "Do ICT Influence Economic Growth and Human Development in European Union Countries?," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 17(1), pages 28-44, February.
    12. repec:kap:iaecre:v:17:y:2011:i:1:p:28-44 is not listed on IDEAS
    13. Lehtonen Olli & Tykkyläinen Markku & Voutilainen Olli, 2012. "Root causes of rural decline in economic well-being in Finland," European Countryside, De Gruyter Open, vol. 4(3), pages 217-239, January.
    14. Jalava, Jukka & Aulin-Ahmavaara, Pirkko & Alanen, Aku, 2007. "Intangible Capital in the Finnish Business Sector 1975-2005," Discussion Papers 1103, The Research Institute of the Finnish Economy.
    15. Tony Irawan, 2013. "ICT and Economic Development:Conclusion from IO Analysis for Selected ASEAN Member States," EIIW Discussion paper disbei192, Universitätsbibliothek Wuppertal, University Library.
    16. Goodridge, PR & Haskel, J & Wallis, G, 2014. "The “C†in ICT: communications capital, spillovers and UK growth," Working Papers 18382, Imperial College, London, Imperial College Business School.
    17. Anna-Leena Asikainen & Giovanni Mangiarotti, 2017. "Open innovation and growth in IT sector," Service Business, Springer;Pan-Pacific Business Association, vol. 11(1), pages 45-68, March.
    18. Tony Irawan, 2014. "ICT and economic development: comparing ASEAN member states," International Economics and Economic Policy, Springer, vol. 11(1), pages 97-114, February.
    19. 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.
    20. Raluca Andreea POPA & Lucian ALEXA, 2014. "The Relationship between Profit and Productivity in the IT Sector in Romania. Analysis by Panel Method," Economics and Applied Informatics, "Dunarea de Jos" University of Galati, Faculty of Economics and Business Administration, issue 2, pages 17-22.
    21. Muttur Ranganathan Narayana, 2008. "Telecommunication Services and Economic Growth: Evidence from India," CIRJE F-Series CIRJE-F-545, CIRJE, Faculty of Economics, University of Tokyo.
    22. Anna-Leena Asikainen, 2015. "Innovation modes and strategies in knowledge intensive business services," Service Business, Springer;Pan-Pacific Business Association, vol. 9(1), pages 77-95, March.

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