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The Long-Run Impact of ICT

  • Francesco VENTURINI

    ()

    (Universita' Politecnica delle Marche, Dipartimento di Economia)

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://docs.dises.univpm.it/web/quaderni/pdf/254.pdf
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Paper provided by Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali in its series Working Papers with number 254.

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Length: 38
Date of creation: Mar 2006
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Handle: RePEc:anc:wpaper:254
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