The Importance of ICT for the Knowledge Economy: A Total Factor Productivity Analysis for Selected OECD Countries
In: Proceedings of the Conference on Emerging Economic Issues in a Globalizing World
Science, technology and innovation have become key factors contributing to economic growth in both advanced and developing economies. In the knowledge economy, information circulates at the international level through trade in goods and services, direct investment and technology flows, and the movement of people. Information and communication technologies (ICT) have been at the heart of economic changes for more than a decade. ICT sector plays an important role, notably by contributing to rapid technological progress and productivity growth. Firms use ICTs to organize transnational networks in response to international competition and the increasing need for strategic interaction. As a result, multinational firms are a primary vehicle of the everspreading process of globalization. New technologies and their implementation in productive activities are changing the economic structure and contributing to productivity increases in OECD economies. Economic competitiveness depends on productivity level and in the knowledge economy, ICT sectors determine the productivity level. As a result , we can say that the power of economic competitiveness of a country depends on the productivity of its ICT sector. There are two ways to improve the TFP of ICT and to improve the power of competitiveness. First of all, if the selected countries solve their inefficiency problem by reallocation of resources, they can improve their TFP of the ICT sector and as a result they can be more competitive. Secondly, the technological improvement in these countries creates an expectation about increasing TFP of ICT sector for future. If there will be a sustainable technological improvement by innovation, it will cause a sustainable increase in the TFP of ICT sector and as a result it will cause a sustainable increase in competitiveness.
|This chapter was published in: ||This item is provided by Izmir University of Economics in its series Papers of the Annual IUE-SUNY Cortland Conference in Economics with number
200804.||Handle:|| RePEc:izm:prcdng:200804||Contact details of provider:|| Fax: (90) 232 279 2626|
Web page: http://eco.ieu.edu.tr
More information through EDIRC
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.:
- Han, Gaofeng & Kalirajan, Kaliappa & Singh, Nirvikar, 2004.
"Productivity, efficiency and economic growth: east Asia and the rest of the world,"
Journal of Developing Areas,
Tennessee State University, College of Business, vol. 37(2), pages 99-118, January-M.
- Han, Gaofeng & Kalirajan, Kaliappa & Singh, Nirvikar, 2003. "Productivity, Efficiency and Economic Growth: East Asia and the Rest of the World," Santa Cruz Department of Economics, Working Paper Series qt16z7s028, Department of Economics, UC Santa Cruz.
- Han, Gaofeng & Kalirajan, Kaliappa P & Singh, Nirvikar, 2003. "Productivity, Efficiency and Economic Growth: East Asia and the Rest of the World," Santa Cruz Department of Economics, Working Paper Series qt6cb2f4k9, Department of Economics, UC Santa Cruz.
- Han, Gaofeng & Kalirajan, Kaliappa & Singh, Nirvikar, 2003. "Productivity, Efficiency and Economic Growth: East Asia and the Rest of the World," Santa Cruz Center for International Economics, Working Paper Series qt16z7s028, Center for International Economics, UC Santa Cruz.
- Antonelli, Cristiano, 2005. "Models of knowledge and systems of governance," Journal of Institutional Economics, Cambridge University Press, vol. 1(01), pages 51-73, June.
- Antonelli, Cristiano, 2005. "Models Of Knowledge And Systems Of Governance," Department of Economics and Statistics Cognetti de Martiis LEI & BRICK - Laboratory of Economics of Innovation "Franco Momigliano", Bureau of Research in Innovation, Complexity and Knowledge, Collegio 200501, University of Turin.
- Caves, Douglas W & Christensen, Laurits R & Diewert, W Erwin, 1982. "The Economic Theory of Index Numbers and the Measurement of Input, Output, and Productivity," Econometrica, Econometric Society, vol. 50(6), pages 1393-1414, November.
- Oulton,Nicholas & O'Mahony,Mary, 1994. "Productivity and Growth," Cambridge Books, Cambridge University Press, number 9780521453455.
- Nicolai J. Foss, 2006. "The Emerging Knowledge Governance Approach Challenges and Characteristics," DRUID Working Papers 06-10, DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies.
- Bernard, Andrew B & Jones, Charles I, 1996. "Comparing Apples to Oranges: Productivity Convergence and Measurement across Industries and Countries," American Economic Review, American Economic Association, vol. 86(5), pages 1216-1238, December.
- Jesus Felipe, 1999. "Total factor productivity growth in East Asia: A critical survey," Journal of Development Studies, Taylor & Francis Journals, vol. 35(4), pages 1-41.
- Felipe, J., 1997. "Total Factor Productivity Growth in East Asia: A Critical Survey," Papers 65, Asian Development Bank.
When requesting a correction, please mention this item's handle: RePEc:izm:prcdng:200804. 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: (Ayla Ogus Binatli)
If references are entirely missing, you can add them using this form.