ICT Intermediates, Growth and Productivity SpilloversEvidence from Comparison of Growth Effects inGerman and US Manufacturing Sectors
Recent pre-crisis growth accounting exercises attribute strong productivity growth toincreased investments in information and communication technologies (ICT), especiallyduring the mid-1990s. EU-wide stylized facts about a growing US–EU productivity gapare confirmed for Germany, particularly showing no substantially economy-wide effectsfrom ICT for German sectors. Tracing the effect from ICT during the period 1991–2005,this study takes a different view by expanding the concept of value added to gross output,additionally including different types of intermediate inputs. The findings suggest thatimported intermediate inputs played a more dominating role in Germany than in the US,particularly imported non-ICT and ICT materials, although domestically-produced ICTmaterials were important as well. In the US, main driving forces were domesticallyproducednon-ICT services and ICT materials, even though imported ICT materialswere on the upraise post 1995. Moreover, there were decisive differences is countries’TFP growth rates with about twice the size in the US. According to robust econometricanalysis there have been strong spillover effects from increasing domestically-producedICT materials in German TFP growth, while for the US TFP growth originated fromincreasing imported ICT materials. It will be argued that these different productivityeffects stem from different functions of ICT in the production process. However, TFPgrowth differentials between Germany and the US during 1991 to 2000 are explained toa great extent by strong US TFP growth in the Electrical & Electronic Machinery sector.
|Date of creation:||2012|
|Contact details of provider:|| Postal: Poschingerstr. 5, 81679 München|
Web page: http://www.cesifo-group.de
More information through EDIRC
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.:
- Francesco Caselli & Daniel Wilson, 2003.
NBER Working Papers
9928, National Bureau of Economic Research, Inc.
- Van Biesebroeck, Johannes, 2008.
"The Sensitivity of Productivity Estimates,"
Journal of Business & Economic Statistics,
American Statistical Association, vol. 26, pages 311-328.
- Hans-Werner Sinn, 2005. "Basar-Ökonomie Deutschland - Exportweltmeister oder Schusslicht?," Ifo Schnelldienst, Ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 58(06), pages 03-42, 03.
- Ian Dew-Becker & Robert J. Gordon, 2008.
"The Role of Labor Market Changes in the Slowdown of European Productivity Growth,"
NBER Working Papers
13840, National Bureau of Economic Research, Inc.
- Dew-Becker, Ian & Gordon, Robert J, 2008. "The Role of Labour Market Changes in the Slowdown of European Productivity Growth," CEPR Discussion Papers 6722, C.E.P.R. Discussion Papers.
- Aghion, P. & Howitt, P., 1990.
"A Model Of Growth Through Creative Destruction,"
DELTA Working Papers
90-12, DELTA (Ecole normale supérieure).
- Aghion, Philippe & Howitt, Peter, 1992. "A Model of Growth Through Creative Destruction," Scholarly Articles 12490578, Harvard University Department of Economics.
- Philippe Aghion & Peter Howitt, 1990. "A Model of Growth Through Creative Destruction," NBER Working Papers 3223, National Bureau of Economic Research, Inc.
- Aghion, P. & Howitt, P., 1989. "A Model Of Growth Through Creative Destruction," Working papers 527, Massachusetts Institute of Technology (MIT), Department of Economics.
- Aghion, P. & Howitt, P., 1989. "A Model Of Growth Through Creative Destruction," UWO Department of Economics Working Papers 8904, University of Western Ontario, Department of Economics.
- Pinelopi Goldberg & Amit Khandelwal & Nina Pavcnik & Petia Topalova, 2009.
"Imported Intermediate Inputs and Domestic Product Growth: Evidence from India,"
1179, Princeton University, Department of Economics, Center for Economic Policy Studies..
- Pinelopi Koujianou Goldberg & Amit Kumar Khandelwal & Nina Pavcnik & Petia Topalova, 2010. "Imported Intermediate Inputs and Domestic Product Growth: Evidence from India," The Quarterly Journal of Economics, Oxford University Press, vol. 125(4), pages 1727-1767.
- Pinelopi K. Goldberg & Amit Khandelwal & Nina Pavcnik & Petia Topalova, 2008. "Imported Intermediate Inputs and Domestic Product Growth: Evidence from India," NBER Working Papers 14416, National Bureau of Economic Research, Inc.
- Norihiko Yamano & Nadim Ahmad, 2006. "The OECD Input-Output Database: 2006 Edition," OECD Science, Technology and Industry Working Papers 2006/8, OECD Publishing.
- Kasahara, Hiroyuki & Rodrigue, Joel, 2008.
"Does the use of imported intermediates increase productivity? Plant-level evidence,"
Journal of Development Economics,
Elsevier, vol. 87(1), pages 106-118, August.
- Joel Rodrigue & Hiroyuki Kasahara, 2004. "Does the Use of Imported Intermediates Increase Productivity? Plant-Level Evidence," Econometric Society 2004 North American Summer Meetings 511, Econometric Society.
- Hiroyuki Kasahara & Joel Rodrigue, 2005. "Does the Use of Imported Intermediates Increase Productivity? Plant-Level Evidence," University of Western Ontario, Economic Policy Research Institute Working Papers 20057, University of Western Ontario, Economic Policy Research Institute.
When requesting a correction, please mention this item's handle: RePEc:ces:ifowps:_123. 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: (Klaus Wohlrabe)
If references are entirely missing, you can add them using this form.