The Effect of Adjustment Costs and Organizational Change on Productivity in Canada: Evidence from Aggregate Data
Danny Leung of the Bank of Canada provides support for the hypothesis that organizational change is a necessary condition for the full realization of the productivity gains associated with ICT. Using aggegate data, the author finds econometric evidence that the impact of computer investment is not fully realized until three years after the initial investment. Firms appear to need a learning period during which they make the necessary adjustments to their organizational structures in order to benefit from the productivity-augmenting potential of ICT. One implication of this analysis is that despite the current lull in investment, productivity growth in Canada should continue to remain fairly robust as firms continue to integrate new technologies into their production processes.
Volume (Year): 9 (2004)
Issue (Month): (Fall)
|Contact details of provider:|| Postal: |
Web page: http://www.csls.ca/
More information through EDIRC
|Order Information:|| Web: http://www.csls.ca Email: |
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Michael T. Kiley, 1999. "Computers and growth with costs of adjustment: will the future look like the past?," Finance and Economics Discussion Series 1999-36, Board of Governors of the Federal Reserve System (U.S.).
- Hashmat Khan & Marjorie Santos, 2002. "Contribution of ICT Use to Output and Labour-Productivity Growth in Canada," Working Papers 02-7, Bank of Canada.
- Lichtenberg, Frank R, 1988. "Estimation of the Internal Adjustment Costs Model Using Longitudinal Establishment Data," The Review of Economics and Statistics, MIT Press, vol. 70(3), pages 421-30, August.
- 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.
- Stephen D. Oliner & Daniel E. Sichel, 2002. "Information technology and productivity: where are we now and where are we going?," Economic Review, Federal Reserve Bank of Atlanta, issue Q3, pages 15-44.
- Stephen D. Oliner & Daniel E. Sichel, 2002. "Information technology and productivity: where are we now and where are we going?," Finance and Economics Discussion Series 2002-29, Board of Governors of the Federal Reserve System (U.S.).
- Brynjolfsson, Erik & Hitt, Lorin M., 2004.
"Computing Productivity: Firm-Level Evidence,"
4210-01, Massachusetts Institute of Technology (MIT), Sloan School of Management.
- Matthew D. Shapiro, 1985.
"Capital Utilization and Capital Accumulation: Theory and Evidence,"
Cowles Foundation Discussion Papers
736, Cowles Foundation for Research in Economics, Yale University.
- Shapiro, Matthew D, 1986. "Capital Utilization and Capital Accumulation: Theory and Evidence," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 1(3), pages 211-34, July.
- Matthew D. Shapiro, 1986. "Capital Utilization and Capital Accumulation: Theory and Evidence," NBER Working Papers 1900, National Bureau of Economic Research, Inc.
- Timothy F. Bresnahan & Erik Brynjolfsson & Lorin M. Hitt, 2002.
"Information Technology, Workplace Organization, And The Demand For Skilled Labor: Firm-Level Evidence,"
The Quarterly Journal of Economics,
MIT Press, vol. 117(1), pages 339-376, February.
- Timothy F. Bresnahan & Erik Brynjolfsson & Lorin M. Hitt, 1999. "Information Technology, Workplace Organization and the Demand for Skilled Labor: Firm-Level Evidence," NBER Working Papers 7136, National Bureau of Economic Research, Inc.
- James Bessen, 2002. "Technology Adoption Costs and Productivity Growth: The Transition to Information Technology," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 5(2), pages 443-469, April.
- Edward N. Wolff, 2002.
"Productivity, computerization, and skill change,"
Federal Reserve Bank of Atlanta, issue Q3, pages 63-87.
- Baldwin, John R. & Harchaoui, Tarek, 2002. "Productivity Growth in Canada," Productivity Growth in Canada, Statistics Canada, Economic Analysis, number stcb6e, December.
- Elena Arnal & Wooseok Ok & Raymond Torres, 2001. "Knowledge, Work Organisation and Economic Growth," OECD Labour Market and Social Policy Occasional Papers 50, OECD Publishing.
- Robert E. Lucas & Jr., 1967. "Adjustment Costs and the Theory of Supply," Journal of Political Economy, University of Chicago Press, vol. 75, pages 321.
- Susanto Basu & John G. Fernald & Nicholas Oulton & Sylaja Srinivasan, 2003.
"The case of the missing productivity growth: or, does information technology explain why productivity accelerated in the United States but not the United Kingdom?,"
Working Paper Series
WP-03-08, Federal Reserve Bank of Chicago.
- Susanto Basu & John G. Fernald & Nicholas Oulton & Sylaja Srinivasan, 2003. "The Case of the Missing Productivity Growth: Or, Does Information technology explain why productivity accelerated in the United States but not the United Kingdom?," Harvard Institute of Economic Research Working Papers 2021, Harvard - Institute of Economic Research.
- Stiroh, Kevin J, 2002. "Are ICT Spillovers Driving the New Economy?," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 48(1), pages 33-57, March.
- 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.
- Alain Paquet & Benoit Robidoux, 1997. "Issues on the Measurement of the Solow Residual and the Testing of its Exogeneity: a Tale of Two Countries," Cahiers de recherche CREFE / CREFE Working Papers 51, CREFE, Université du Québec à Montréal.
When requesting a correction, please mention this item's handle: RePEc:sls:ipmsls:v:9:y:2004:5. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Whitney Hamilton)The email address of this maintainer does not seem to be valid anymore. Please ask Whitney Hamilton to update the entry or send us the correct address
If references are entirely missing, you can add them using this form.