Information and communications technology as a general-purpose technology: evidence from U.S industry data
Many people point to information and communications technology (ICT) as the key for understanding the acceleration in productivity in the United States since the mid-1990s. Stories of ICT as a 'general purpose technology' suggest that measured TFP should rise in ICT-using sectors (reflecting either unobserved accumulation of intangible organizational capital, spillovers, or both), but with a long lag. Contemporaneously, however, investments in ICT may be associated with lower TFP as resources are diverted to reorganization and learning. We find that U.S. industry results are consistent with GPT stories: the acceleration after the mid-1990s was broadbased--located primarily in ICT-using industries rather than ICT-producing industries. Furthermore, industry TFP accelerations in the 2000s are positively correlated with (appropriately weighted) industry ICT capital growth in the 1990s. Indeed, as GPT stories would suggest, after controlling for past ICT investment, industry TFP accelerations are negatively correlated with increases in ICT usage in the 2000s.
|Date of creation:||2006|
|Date of revision:|
|Contact details of provider:|| Postal: |
Phone: (415) 974-2000
Fax: (415) 974-3333
Web page: http://www.frbsf.org/
More information through EDIRC
|Order Information:|| Email: |
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.:
- Bresnahan, Timothy F. & Trajtenberg, M., 1995.
"General purpose technologies 'Engines of growth'?,"
Journal of Econometrics,
Elsevier, vol. 65(1), pages 83-108, January.
- Nicholas Oulton & Sylaja Srinivasan, 2005.
"Productivity growth and the role of ICT in the United Kingdom: an industry view, 1970-2000,"
LSE Research Online Documents on Economics
19901, London School of Economics and Political Science, LSE Library.
- Nicholas Oulton & Sylaja Srinivasan, 2005. "Productivity Growth and the Role of ICT in the United Kingdom: An Industry View, 1970-2000," CEP Discussion Papers dp0681, Centre for Economic Performance, LSE.
- Robert Inklaar & Marcel P. Timmer & Bart van Ark, 2007.
"Mind the Gap! International Comparisons of Productivity in Services and Goods Production,"
German Economic Review,
Verein für Socialpolitik, vol. 8, pages 281-307, 05.
- Robert Inklaar & Marcel P. Timmer & Bart van Ark, 2006. "Mind the gap! International comparisons of productivity in services and goods production," Hi-Stat Discussion Paper Series d06-175, Institute of Economic Research, Hitotsubashi University.
- Boyan Jovanovic & Peter L. Rousseau, 2002.
"Mergers as Reallocation,"
NBER Working Papers
9279, National Bureau of Economic Research, Inc.
- Robert Inklaar & Marcel P. Timmer, 2007. "Of Yeast and Mushrooms: Patterns of Industry-Level Productivity Growth," German Economic Review, Verein für Socialpolitik, vol. 8, pages 174-187, 05.
- Hasan Bakhshi & Nicholas Oulton & Jamie Thompson, 2003. "Modelling investment when relative prices are trending: theory and evidence for the United Kingdom," Bank of England working papers 189, Bank of England.
- Paul David & Gavin Wright, 1999.
"General Purpose Technologies and Surges in Productivity: Historical Reflections on the Future of the ICT Revolution,"
Economics Series Working Papers
1999-W31, University of Oxford, Department of Economics.
- Paul A. David & Gavin Wright, . "General Purpose Technologies and Surges in Productivity: Historical Reflections on the Future of the ICT Revolution," Working Papers 99026, Stanford University, Department of Economics.
- Paul A. David & Gavin Wright, 1999. "General Purpose Technologies and Surges in Productivity: Historical Reflections on the Future of the ICT Revolution," Oxford University Economic and Social History Series _031, Economics Group, Nuffield College, University of Oxford.
- Carol Corrado & Charles Hulten & Daniel Sichel, 2006.
"Intangible capital and economic growth,"
Finance and Economics Discussion Series
2006-24, Board of Governors of the Federal Reserve System (U.S.).
- Andreas Hornstein & Per Krusell, 1996. "Can Technology Improvements Cause Productivity Slowdowns?," NBER Chapters, in: NBER Macroeconomics Annual 1996, Volume 11, pages 209-276 National Bureau of Economic Research, Inc.
- Bart Hobijn & Boyan Jovanovic, 2001.
"The Information-Technology Revolution and the Stock Market: Evidence,"
American Economic Review,
American Economic Association, vol. 91(5), pages 1203-1220, December.
- Bart Hobijn & Boyan Jovanovic, 2000. "The Information Technology Revolution and the Stock Market: Evidence," NBER Working Papers 7684, National Bureau of Economic Research, Inc.
- John Laitner & Dmitriy Stolyarov, 2003. "Technological Change and the Stock Market," American Economic Review, American Economic Association, vol. 93(4), pages 1240-1267, September.
- Carol Corrado & Paul Lengermann & Eric J. Bartelsman & J. Joseph Beaulieu, 2007.
"Sectoral productivity in the United States: recent developments and the role of IT,"
Finance and Economics Discussion Series
2007-24, Board of Governors of the Federal Reserve System (U.S.).
- Carol Corrado & Paul Lengermann & Eric J. Bartelsman & J. Joseph Beaulieu, 2007. "Sectoral Productivity in the United States: Recent Developments and the Role of IT," German Economic Review, Verein für Socialpolitik, vol. 8, pages 188-210, 05.
- Nicholas Oulton, 2000.
"Must the growth rate decline? Baumol's unbalanced growth revisited,"
Bank of England working papers
107, Bank of England.
- Oulton, Nicholas, 2001. "Must the Growth Rate Decline? Baumol's Unbalanced Growth Revisited," Oxford Economic Papers, Oxford University Press, vol. 53(4), pages 605-27, October.
- Krueger, Dirk & Kumar, Krishna B., 2004.
"US-Europe differences in technology-driven growth: quantifying the role of education,"
Journal of Monetary Economics,
Elsevier, vol. 51(1), pages 161-190, January.
- Dirk Krueger & Krishna B. Kumar, 2003. "US-Europe Differences in Technology-Driven Growth: Quantifying the Role of Education," NBER Working Papers 10001, National Bureau of Economic Research, Inc.
When requesting a correction, please mention this item's handle: RePEc:fip:fedfwp:2006-29. 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: (Diane Rosenberger)
If references are entirely missing, you can add them using this form.