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Contribution of ICT Diffusion to Labour Productivity Growth: The United States, Canada, the Eurozone, and the United Kingdom, 1970-2013

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  • Gilbert Cette

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  • Christian Clerc
  • Lea Bresson

Abstract

This study measures and compares the trends in ICT diffusion and the contribution of ICT to labour productivity growth in the United States, Canada, the Eurozone, and the United Kingdom from 1970 to 2013. There are three main results: i) after a long period of sustained growth, ICT diffusion, as measured by the share of ICT capital stock to GDP expressed in current prices, has stabilized since 2000 in all four areas; ii) this stabilization happened at different levels, significantly higher in the United States than elsewhere; and iii) in all four jurisdictions, the contribution of ICT to labour productivity growth rose significantly in 1994-2004 compared to 1974-1994. Since 2004, the contribution of ICT to labour productivity growth has fallen off considerably. It only remains positive as a result of the continued advances in ICT performance as proxied by the continued fall in ICT prices. Unfortunately, the pace of improvement also appears to be rapidly decreasing.

Suggested Citation

  • Gilbert Cette & Christian Clerc & Lea Bresson, 2015. "Contribution of ICT Diffusion to Labour Productivity Growth: The United States, Canada, the Eurozone, and the United Kingdom, 1970-2013," International Productivity Monitor, Centre for the Study of Living Standards, vol. 28, pages 81-88, Spring.
  • Handle: RePEc:sls:ipmsls:v:28:y:2015:5
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    References listed on IDEAS

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    1. Aghion, Philippe & Askenazy, Philippe & Bourlès, Renaud & Cette, Gilbert & Dromel, Nicolas, 2009. "Education, market rigidities and growth," Economics Letters, Elsevier, vol. 102(1), pages 62-65, January.
    2. Gilbert Cette & Yusuf Kocoglu & Jacques Mairesse, 2009. "Productivity Growth and Levels in France, Japan, the United Kingdom and the United States in the Twentieth Century," NBER Working Papers 15577, National Bureau of Economic Research, Inc.
    3. P. Guerrieri & M. Luciani & V. Meliciani, 2011. "The determinants of investment in information and communication technologies," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 20(4), pages 387-403.
    4. Kevin J. Fox & Gilbert Cette & Jimmy Lopez & Jacques Mairesse, 2017. "Upstream Product Market Regulations, ICT, R&D and Productivity," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 63, pages 68-89, February.
    5. Gilbert Cette & Jimmy Lopez, 2012. "ICT demand behaviour: an international comparison," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 21(4), pages 397-410, June.
    6. Ana Aizcorbe & Stephen D Oliner & Daniel E Sichel, 2008. "Shifting Trends in Semiconductor Prices and the Pace of Technological Progress," Business Economics, Palgrave Macmillan;National Association for Business Economics, vol. 43(3), pages 23-39, July.
    7. Cette, G., 2014. "Does ICT remain a powerful engine of growth?," Working papers 476, Banque de France.
    8. Gilbert Cette, 2014. "Presidential Conference Does ICT remain a powerful engine of growth?," Revue d'économie politique, Dalloz, vol. 124(4), pages 473-492.
    9. Dirk Pilat & Franck Lee, 2001. "Productivity Growth in ICT-producing and ICT-using Industries: A Source of Growth Differentials in the OECD?," OECD Science, Technology and Industry Working Papers 2001/4, OECD Publishing.
    10. Bart van Ark & Mary O'Mahoney & Marcel P. Timmer, 2008. "The Productivity Gap between Europe and the United States: Trends and Causes," Journal of Economic Perspectives, American Economic Association, vol. 22(1), pages 25-44, Winter.
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    Cited by:

    1. repec:sls:ipmsls:v:35:y:2018:5 is not listed on IDEAS
    2. repec:bfr:rueban:2017:43 is not listed on IDEAS
    3. Cette, Gilbert & Fernald, John & Mojon, Benoît, 2016. "The pre-Great Recession slowdown in productivity," European Economic Review, Elsevier, vol. 88(C), pages 3-20.
    4. Cette Gilbert & Lecat Rémy & Ahmed Jiddou Ahmed Ould, 2016. "How do firms adjust production factors to the cycle?," The B.E. Journal of Macroeconomics, De Gruyter, vol. 16(2), pages 361-394, June.
    5. repec:ksa:szemle:1714 is not listed on IDEAS
    6. repec:spr:cliomt:v:12:y:2018:i:1:d:10.1007_s11698-016-0149-2 is not listed on IDEAS
    7. Joel Cariolle & Maëlan Le Goff & Olivier Santoni, 2017. "Telecommunications submarine cable vulnerability and local performance of firms in developing and transition countries," Post-Print hal-01569846, HAL.
    8. Cette, G. & Clerc, C. & Bresson, L., 2016. "Contribution of information and communication technologies (ICT) to growth," Rue de la Banque, Banque de France, issue 22, April..
    9. Gilbert Cette & Jimmy Lopez & Giorgio Presidente & Vincenzo Spiezia, 2019. "Measuring ‘indirect’ investments in ICT in OECD countries," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 28(4), pages 348-364, May.
    10. Jeff Mollins & Pierre St-Amant, 2018. "The Productivity Slowdown in Canada: an ICT Phenomenon?," International Productivity Monitor, Centre for the Study of Living Standards, vol. 35, pages 95-112, Fall.
    11. Joël CARIOLLE & Maëlan LE GOFF & Olivier SANTONI, 2019. "Telecommunications submarine cable vulnerability and local performance of firms in developing and transition countries," Working Papers P195, FERDI.
    12. Antonin BERGEAUD & Gilbert Cette & Rémy Lecat, 2017. "What role did education, equipment age and technology play in 20th century productivity growth?," Rue de la Banque, Banque de France, issue 43, may..
    13. Pierre St-Amant & David Tessier, 2018. "Firm Dynamics and Multifactor Productivity: An Empirical Exploration," Staff Working Papers 18-15, Bank of Canada.
    14. Gilbert CETTE, 2015. "Which Role for ICTs as a Productivity Driver Over the Last Years and the Next Future?," Communications & Strategies, IDATE, Com&Strat dept., vol. 1(100), pages 65-83, 4th quart.
    15. Joël CARIOLLE & Maëlan LE GOFF & Olivier SANTONI, 2019. "Telecommunications submarine cable vulnerability and local performance of firms in developing and transition countries," Working Papers P195, FERDI.
    16. 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.
    17. repec:nse:ecosta:ecostat_2017_494-495-496_2 is not listed on IDEAS
    18. Andrew Agopsowicz & Dany Brouillette & Shutao Cao & Natalia Kyui & Pierre St-Amant, 2016. "April 2016 Annual Reassessment of Potential Output in Canada," Staff Analytical Notes 16-4, Bank of Canada.

    More about this item

    Keywords

    ICT; ICT Diffusion; Labour Productivity Growth; Technological Change; Canada; United States; Eurozone; United Kingdom;

    JEL classification:

    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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