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The Contribution of ICT-Producing and ICT-Using Industries to Productivity Growth: A Comparison of Canada, Europe and the United States

Author

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  • Bart van Ark

    ()

  • Robert Inklaar
  • Robert H. McGuckin

Abstract

Both ICT-producing and ICT-using industries have contributed disproportionately to labour productivity growth in the 1990s. In this article, Bart van Ark, Robert Inklaar from the University of Groningen and Robert H. McGuckin of the U.S. Conference Board compare Canada, the United States and Europe in terms of the contribution of ICT-producing and ICT-using industries to productivity growth. In the 1995-2000 period, the contribution of ICT-producing industries to labour productivity growth was similar in Canada and the Europe, but only half that in the United State. In terms of the contribution of ICT-using industries, Canada was in an intermediate position between Europe and the United States. The authors offer as a possible explanation for this latter situation Canada's equally intermediate position between the relative strict labour and product market regulation in Europe and more lax environment in the United States.

Suggested Citation

  • Bart van Ark & Robert Inklaar & Robert H. McGuckin, 2003. "The Contribution of ICT-Producing and ICT-Using Industries to Productivity Growth: A Comparison of Canada, Europe and the United States," International Productivity Monitor, Centre for the Study of Living Standards, vol. 6, pages 56-63, Spring.
  • Handle: RePEc:sls:ipmsls:v:6:y:2003:5
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    References listed on IDEAS

    as
    1. Hashmat Khan & Marjorie Santos, 2002. "Contribution of ICT Use to Output and Labour-Productivity Growth in Canada," Staff Working Papers 02-7, Bank of Canada.
    2. Dale W. Jorgenson, 2001. "Information Technology and the U.S. Economy," American Economic Review, American Economic Association, vol. 91(1), pages 1-32, March.
    3. Bart van Ark & Robert Inklaar & Robert H. McGuckin, 2002. "'Changing Gear' - Productivity, ICT and Services Industries: Europe and the United States," Economics Program Working Papers 02-02, The Conference Board, Economics Program.
    4. Oliner, Stephen D. & Sichel, Daniel E., 2003. "Information technology and productivity: where are we now and where are we going?," Journal of Policy Modeling, Elsevier, vol. 25(5), pages 477-503, July.
    5. Martin Neil Baily, 2002. "Distinguished Lecture on Economics in Government: The New Economy: Post Mortem or Second Wind?," Journal of Economic Perspectives, American Economic Association, vol. 16(2), pages 3-22, Spring.
    6. Erik Brynjolfsson & Lorin M. Hitt, 2000. "Beyond Computation: Information Technology, Organizational Transformation and Business Performance," Journal of Economic Perspectives, American Economic Association, vol. 14(4), pages 23-48, Fall.
    7. Kevin J. Stiroh, 2002. "Information Technology and the U.S. Productivity Revival: What Do the Industry Data Say?," American Economic Review, American Economic Association, vol. 92(5), pages 1559-1576, December.
    8. Alessandra Colecchia & Paul Schreyer, 2003. "The contribution of information and communication technologies to economic growth in nine OECD countries," OECD Economic Studies, OECD Publishing, vol. 2002(1), pages 153-171.
    9. Dale W. Jorgenson, 2001. "Information Technology and the U. S. Economy," Harvard Institute of Economic Research Working Papers 1911, Harvard - Institute of Economic Research.
    10. Bart van Ark, 2002. "Understanding Productivity and Income Differentials Among OECD Countries: A Survey," The Review of Economic Performance and Social Progress,in: Andrew Sharpe, Executive Director & France St-Hilaire, Vice-President , Research & Keith Banting, Di (ed.), The Review of Economic Performance and Social Progress 2002: Towards a Social Understanding of Productivity, volume 2 Centre for the Study of Living Standards;The Institutute for Research on Public Policy.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Peter J. Nicholson, 2003. "The Growth Story: Canada's Long-run Economic Performance and Prospects," International Productivity Monitor, Centre for the Study of Living Standards, vol. 7, pages 3-23, Fall.
    2. Rendall, Michelle & Weiss, Franziska J., 2016. "Employment polarization and the role of the apprenticeship system," European Economic Review, Elsevier, vol. 82(C), pages 166-186.
    3. Benoit A. Aubert & Blaize Horner Reich, 2009. "Extracting Value From Information Technologies," CIRANO Burgundy Reports 2009rb-04, CIRANO.
    4. Ioannis Giotopoulos & Georgios Fotopoulos, 2010. "Intra-Industry Growth Dynamics in the Greek Services Sector: Firm-Level Estimates for ICT-Producing, ICT-Using, and Non-ICT Industries," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 36(1), pages 59-74, February.
    5. Marianna Belloc & Paolo Guerrieri, 2015. "Impact of ICT diffusion and adoption on sectoral industrial performance: evidence from a panel of European countries," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 32(1), pages 67-84, April.
    6. Paloma Lopez-Garcia & Sergio Puente & Angel Luis Gomez, 2009. "Employment Generation By Small Producers In Spain," JOURNAL STUDIA UNIVERSITATIS BABES-BOLYAI NEGOTIA, Babes-Bolyai University, Faculty of Business.
    7. Theo Eicher & Oliver Röhn, 2007. "Sources of the German Productivity Demise – Tracing the Effects of Industry-Level ICT Investment," CESifo Working Paper Series 1896, CESifo Group Munich.
    8. Richard G. Harris & Peter E. Robertson, 2007. "Dynamic Adjustments to Terms of Trade Shocks: The USA Productivity Boom and Australia," Discussion Papers 2007-16, School of Economics, The University of New South Wales.
    9. repec:eee:jbrese:v:81:y:2017:i:c:p:60-69 is not listed on IDEAS
    10. Ketteni, Elena & Mamuneas, Theofanis & Stengos, Thanasis, 2011. "The Effect Of Information Technology And Human Capital On Economic Growth," Macroeconomic Dynamics, Cambridge University Press, vol. 15(05), pages 595-615, November.
    11. Meijers, Huub, 2006. "Diffusion of the Internet and low inflation in the information economy," Information Economics and Policy, Elsevier, vol. 18(1), pages 1-23, March.
    12. Meijers, Huub, 2007. "ICT Externalities: Evidence from cross country data," MERIT Working Papers 021, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    13. Theo S. Eicher & Oliver Roehn, 2007. "Sources of the German Productivity Demise: Tracing the Effects of Industry-Level Information and Communication Technology Investment," German Economic Review, Verein für Socialpolitik, vol. 8, pages 211-236, May.
    14. repec:rss:jnljee:v4i2p3 is not listed on IDEAS
    15. Theo Eicher & Thomas Strobel, 2008. "Germany’s Continued Productivity Slump: An Industry Analysis," ifo Working Paper Series 58, ifo Institute - Leibniz Institute for Economic Research at the University of Munich.

    More about this item

    Keywords

    Canada; United States; Europe; Productivity; Growth; ICT; Information; Communication; Technology; Sources of Growth; Services; Industry;

    JEL classification:

    • O57 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • L80 - Industrial Organization - - Industry Studies: Services - - - General

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