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Information technology and economic performance in U.S industries

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  • Elena Ketteni

Abstract

We study the relationship between information technology (IT) and economic performance, to explore whether IT‐capital promotes productivity growth. We use a data set similar to that of previous researchers, but employ non‐parametric estimation techniques in order to directly estimate the output elasticities of IT for each industry and time period. We find that IT has a positive effect on productivity, which varies among industries and time. Moreover, adjustment costs are important when identifying this effect. Finally, IT‐capital growth appears to be raising income in all industries used in our sample, even those that experienced output reduction. L'auteur étudie la relation entre la technologie de l'information (TI) et la performance économique pour établir si le capital‐TI promeut la croissance de la productivité. On utilise des données semblables à celles utilisées par les chercheurs qui se sont occupés de ces questions auparavant, mais on utilise des techniques d'estimation non‐paramétrique pour pouvoir calibrer directement les élasticités des produits par rapport à l'investissement en TI pour chaque industrie et chaque période. On découvre que les TI ont un effet positif sur la productivité, et que cet effet varie selon l'industrie et dans le temps. De plus, les coûts d'ajustement sont importants quand on calibre cet effet. Finalement la croissance du capital‐TI semble augmenter le niveau de revenu dans toutes les industries utilisées dans l'échantillon, même celles qui ont subi une réduction du niveau de la production.

Suggested Citation

  • Elena Ketteni, 2009. "Information technology and economic performance in U.S industries," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 42(3), pages 844-865, August.
    • Handle: RePEc:wly:canjec:v:42:y:2009:i:3:p:844-865
    DOI: 10.1111/j.1540-5982.2009.01529.x
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    4. Yan Wang & Ping Han, 2023. "Digital Transformation, Service-Oriented Manufacturing, and Total Factor Productivity: Evidence from A-Share Listed Companies in China," Sustainability, MDPI, vol. 15(13), pages 1-24, June.
    5. Zhou, Yong & Yang, Qijin & Lu, Shuo, 2023. "Research on the identification and formation mechanism of the main path of digital technology diffusion: Empirical evidence from China," Technology in Society, Elsevier, vol. 75(C).
    6. Elena Ketteni & Theofanis Mamuneas & Panos Pashardes, 2013. "ICT and Energy Use: Patterns of Substitutability and Complementarity in Production," Cyprus Economic Policy Review, University of Cyprus, Economics Research Centre, vol. 7(1), pages 63-86, June.
    7. Tian Zhang & Rong Zhang, 2024. "The spatial effect of low-carbon development of regional industries driven by the digital economy: evidence from Chinese cities," Humanities and Social Sciences Communications, Palgrave Macmillan, vol. 11(1), pages 1-13, December.

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