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ICT investments and growth accounts for the European Union

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  • Ark, Bart van

    (Groningen University)

Abstract

This paper analyses developments of comparative output and productivity levels in 17 manufacturing industries in Taiwan, South Korea and Indonesia compared to the United States for the period 1980-2000. In order to express value added in a common currency, unit value ratios are developed for the benchmark year 1997. The study provides an update and extension of the benchmark studies for 1987 of Taiwan (Timmer, 1998), South Korea (Pilat, 1994) and Indonesia (Szirmai, 1994). In addition, comparisons of unit labour cost are made. It is shown that the Asian financial crisis has led to a quick restructuring process in South Korea which maintained its catch-up trend with the US during the 1990s. The level of value added per hour worked in 2000 is 35% of the US. On the other hand, performance in Taiwanese manufacturing dwindled in the 1990s and it has almost lost it productivity lead over South Korea. In 2000, labour productivity was 40% of the US level. Catching up in Indonesia started to take off at the end of the 1980s but this process has been dramatically reversed in the aftermath of the 1997 financial crisis. It has barely recovered to pre-1997 levels and growth relies heavily on export industries with little productivity growth. In 2000, value added per hour worked in the medium and large scale industry is still below 10% of the US level.

Suggested Citation

  • Ark, Bart van, 2002. "ICT investments and growth accounts for the European Union," GGDC Research Memorandum 200256, Groningen Growth and Development Centre, University of Groningen.
    • Handle: RePEc:gro:rugggd:200256
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    File URL: http://irs.ub.rug.nl/ppn/242655963
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    References listed on IDEAS

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    Cited by:

    1. Ayoub Yousefi, 2011. "The impact of information and communication technology on economic growth: evidence from developed and developing countries," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 20(6), pages 581-596, November.
    2. Ark, Bart van, 2005. "Does the European Union need to revive productivity growth," GGDC Research Memorandum 200575, Groningen Growth and Development Centre, University of Groningen.
    3. Gaaitzen J. De Vries & Nanno Mulder & Mariela Dal Borgo & Andre A. Hofman, 2010. "ICT Investment in Latin America: Does it Matter for Economic Growth?," Chapters, in: Mario Cimoli & André A. Hofman & Nanno Mulder (ed.), Innovation and Economic Development, chapter 4, Edward Elgar Publishing.
    4. Li, Qing & Wu, Yanrui, 2020. "Intangible capital, ICT and sector growth in China," Telecommunications Policy, Elsevier, vol. 44(1).
    5. Francesco VENTURINI, 2008. "Information Technology, Research & Development, or Both? What Really Drives A Nation's Productivity," Working Papers 321, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
    6. Alessandro Sterlacchini & Francesco Venturini, 2013. "Boosting Manufacturing Productivity Through R&D: International Comparisons with Special Focus on Italy," Journal of Industry, Competition and Trade, Springer, vol. 13(2), pages 187-208, June.
    7. Francesco Venturini, 2009. "The long-run impact of ICT," Empirical Economics, Springer, vol. 37(3), pages 497-515, December.
    8. Ajayi, V. & Dolphin, G. & Anaya, K. & Pollitt, M., 2020. "The Productivity Puzzle in Network Industries: Evidence from the Energy Sector," Cambridge Working Papers in Economics 2073, Faculty of Economics, University of Cambridge.
    9. repec:dgr:rugggd:200575 is not listed on IDEAS
    10. Li, Qing & Wu, Yanrui, 2018. "Intangible capital in Chinese regional economies: Measurement and analysis," China Economic Review, Elsevier, vol. 51(C), pages 323-341.
    11. Diego Martínez, y José L. Torres & Jesús Rodríguez-López & José L. Torres, 2008. "Productivity growth and technological change in Europe and us," Economic Working Papers at Centro de Estudios Andaluces E2008/12, Centro de Estudios Andaluces.
    12. Wang, Jianda & Dong, Xiucheng & Dong, Kangyin, 2022. "How does ICT agglomeration affect carbon emissions? The case of Yangtze River Delta urban agglomeration in China," Energy Economics, Elsevier, vol. 111(C).
    13. Lourens Broersma & Jan Oosterhaven, 2009. "Regional Labor Productivity In The Netherlands: Evidence Of Agglomeration And Congestion Effects," Journal of Regional Science, Wiley Blackwell, vol. 49(3), pages 483-511, August.
    14. Jin, Canyang & Xu, Aiting & Zhu, Yuhan & Li, Jinchang, 2023. "Technology growth in the digital age: Evidence from China," Technological Forecasting and Social Change, Elsevier, vol. 187(C).
    15. Venturini, Francesco, 2015. "The modern drivers of productivity," Research Policy, Elsevier, vol. 44(2), pages 357-369.

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