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'Changing Gear' - Productivity, ICT and Services Industries: Europe and the United States

Author

Listed:
  • Bart van Ark

    () (University of Groningen, Economic Growth Center, Yale University, and The Conference Board)

  • Robert Inklaar

    () (University of Groningen and The Conference Board)

  • Robert H. McGuckin

    (The Conference Board)

Abstract

This paper examines cross-country and cross-industry differences in labor productivity performance and their association with ICT. It broadens earlier work with coverage of 52 industries in 16 OECD countries. The analysis suggests that ICT diffusion in Europe is following similar industry patterns to those observed in the U.S., but at a considerably slower pace. The key differences between Europe and the U.S. are in the intensive ICT-using services, with U.S. productivity growth showing a strong acceleration during the second half of the decade, whereas growth stalled in the EU. More specifically, the U.S. showed rapid productivity expansion in retail and wholesale trade and securities, which account for much of the overall U.S.-EU gap in productivity growth since 1995. In the ICT-producing sector, computers and communication equipment showed strong productivity growth and acceleration in virtually all countries, but differences are much bigger across countries for ICT-producing services, such as telecom services.

Suggested Citation

  • Bart van Ark & Robert Inklaar & Robert H. McGuckin, 2002. "'Changing Gear' - Productivity, ICT and Services Industries: Europe and the United States," Economics Program Working Papers 02-02, The Conference Board, Economics Program.
  • Handle: RePEc:cnf:wpaper:0202
    as

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    File URL: http://www.conference-board.org/economics/workingpapers.cfm?pdf=E-0009-02-WP
    File Function: First version, 2002
    Download Restriction: no

    References listed on IDEAS

    as
    1. MartinNeil Baily & Robert Z. Lawrence, 2001. "Do We Have a New E-conomy?," American Economic Review, American Economic Association, vol. 91(2), pages 308-312, May.
    2. Stefano Scarpetta & Andrea Bassanini & Dirk Pilat & Paul Schreyer, 2000. "Economic Growth in the OECD Area: Recent Trends at the Aggregate and Sectoral Level," OECD Economics Department Working Papers 248, OECD Publishing.
    3. Alessandra Colecchia & Paul Schreyer, 2001. "ICT Investment and Economic Growth in the 1990s: Is the United States a Unique Case? A Comparative Study of Nine OECD Countries," OECD Science, Technology and Industry Working Papers 2001/7, OECD Publishing.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    ICT; diffusion; productivity; services;

    JEL classification:

    • N10 - Economic History - - Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations - - - General, International, or Comparative
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • O57 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries

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