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The long-run impact of ICT

  • Francesco Venturini

    ()

Using some new techniques of panel cointegration analysis, this paper describes the long-run impact of digital capital on the aggregate performance of the US and EU-15 member countries. ICT is found to significantly impact on output levels without substantial cross-country variation when one adopts the dynamic extension of panel OLS (PDOLS). In this case, however, the long-run elasticity of factor inputs does not differ from the one estimated in the short-run. The time-series version of seemingly unrelated regression (DSUR) provides more plausible findings, showing a significant cross-countries heterogeneity. The effect of ICT on growth appears relevant - and higher than emerging from short-differences - for most economies but not for the EU largest countries.

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File URL: http://hdl.handle.net/10.1007/s00181-008-0243-9
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Article provided by Springer in its journal Empirical Economics.

Volume (Year): 37 (2009)
Issue (Month): 3 (December)
Pages: 497-515

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Handle: RePEc:spr:empeco:v:37:y:2009:i:3:p:497-515
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