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The Diffusion of ICTs and Growth of the French Economy over the Long-term, 1980-2000

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  • Gilbert Cette

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  • Jacques Mairesse

    ()

  • Yusuf Kocoglu

    ()

Abstract

Major European countries, unlike the United States, did not experience an acceleration in labour productivity growth in the second half of the 1990s. In this article, Gilbert Cette from the Bank of France and the University of Aix-Marseilles II, Jacques Mairesse of INSEE-CREST, and Yusef Kocoglu of the University of Aix-Marseilles provide a detailed growth accounting of the impact of diffusion of information and communication technologies (ICTs) on economic growth in France over the 1980-2000 period. They find that total factor productivity growth picked up considerably in the second half of the 1990s relative to the first half, but that labour productivity growth actually decelerated. This latter development was related to the more than 2 percentage point turnaround in employment growth, in part caused by policies aimed at enhancing the employment component of growth, such as the 35 hour week. They estimate that the contribution of ICTs to output and productivity growth has been sizeable in France, but much less than in the United States, in part because of the smaller size of the French ICT sector. But they argue that having a large ICT-producing sector is not a necessary condition to obtain the full benefits from ICT use and conclude that the ICT contribution to growth in France and other European countries could increase significantly in coming years.

Suggested Citation

  • Gilbert Cette & Jacques Mairesse & Yusuf Kocoglu, 2002. "The Diffusion of ICTs and Growth of the French Economy over the Long-term, 1980-2000," International Productivity Monitor, Centre for the Study of Living Standards, vol. 4, pages 27-38, Spring.
  • Handle: RePEc:sls:ipmsls:v:4:y:2002:3
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    References listed on IDEAS

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    Cited by:

    1. C. Rigo, 2005. "The potential growth of the Belgian economy and its determinants," Economic Review, National Bank of Belgium, issue iii, pages 45-64, September.
    2. Benoit A. Aubert & Blaize Horner Reich, 2009. "Extracting Value From Information Technologies," CIRANO Burgundy Reports 2009rb-04, CIRANO.
    3. Martin Aarøe Christensen, 2015. "A CGE model with ICT and R&D-driven endogenous growth: A detailed model description," JRC Working Papers JRC97908, Joint Research Centre (Seville site).
    4. Gilbert Cette & Christian Pfister, 2004. "Challenges of the “New Economy” for Monetary Policy," International Productivity Monitor, Centre for the Study of Living Standards, vol. 8, pages 27-36, Spring.
    5. 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.
    6. Tahir Mahmood, 2012. "Labour Productivity Convergence in 52 Industries: A Panel Data Analysis of Some European Countries," International Journal of Economics and Financial Issues, Econjournals, vol. 2(3), pages 320-339.

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    More about this item

    Keywords

    France; Productivity; Growth; ICT; Information; Communication; Technology; Labour Productivity; Labor Productivity; Multifactor Productivity; Multi-factor Productivity; Total Factor Productivity; Innovation; Acceleration;
    All these keywords.

    JEL classification:

    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General
    • O52 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Europe
    • E66 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - General Outlook and Conditions
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity

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