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ICT and Europe's productivity performance industry-level growth account comparisons with the United States

Listed author(s):
  • Inklaar, Robert
  • Mahony, Mary O'
  • Timmer, Marcel

    (Groningen University)

In this paper we present a new industry-level database to analyse sources of growth in four major European countries: France, Germany, Netherlands and United Kingdom (EU-4), in comparison with the United States for the period 1979-2000. Aggregate labour productivity growth is decomposed into industry-level contributions of labour quality, ICT and non-ICT capital deepening and TFP. A small set of service industries is mainly responsible for the acceleration in ICT capital deepening in both regions, but their contribution to growth is lower in the EU-4 than in the U.S. TFP in these industries accelerated in the U.S in the 1990s, but not in Europe. In addition, widespread deceleration in non-ICT capital deepening in the EU-4 has led to a European productivity slowdown. This is linked to wage moderation in the 1990s.

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File URL: http://irs.ub.rug.nl/ppn/258660694
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Paper provided by Groningen Growth and Development Centre, University of Groningen in its series GGDC Research Memorandum with number 200368.

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Date of creation: 2003
Handle: RePEc:gro:rugggd:200368
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Web page: http://www.rug.nl/research/ggdc/
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  1. Nicholas Oulton, 2002. "ICT and Productivity Growth in the United Kingdom," Oxford Review of Economic Policy, Oxford University Press, vol. 18(3), pages 363-379.
  2. D. W. Jorgenson & Z. Griliches, 1967. "The Explanation of Productivity Change," Review of Economic Studies, Oxford University Press, vol. 34(3), pages 249-283.
  3. Robert J. Gordon, 2000. "Does the "New Economy" Measure Up to the Great Inventions of the Past?," Journal of Economic Perspectives, American Economic Association, vol. 14(4), pages 49-74, Fall.
  4. Paul Schreyer, 2000. "The Contribution of Information and Communication Technology to Output Growth: A Study of the G7 Countries," OECD Science, Technology and Industry Working Papers 2000/2, OECD Publishing.
  5. Hyunbae Chun, 2003. "Information Technology and the Demand for Educated Workers: Disentangling the Impacts of Adoption versus Use," The Review of Economics and Statistics, MIT Press, vol. 85(1), pages 1-8, February.
  6. Timmer, Marcel P. & Ypma, Gerard & Ark, Bart van der, 2003. "IT in the European Union: driving productivity divergence?," GGDC Research Memorandum 200363, Groningen Growth and Development Centre, University of Groningen.
  7. Mary O'Mahony & Dr Michela Vecchi, 2003. "Is there an ICT impact on TFP? A heterogeneous dynamic panel approach," NIESR Discussion Papers 219, National Institute of Economic and Social Research.
  8. Charles R. Hulten & Edwin R. Dean & Michael J. Harper, 2001. "New Developments in Productivity Analysis," NBER Books, National Bureau of Economic Research, Inc, number hult01-1, October.
  9. Erik Brynjolfsson & Lorin M. Hitt, 2000. "Beyond Computation: Information Technology, Organizational Transformation and Business Performance," Journal of Economic Perspectives, American Economic Association, vol. 14(4), pages 23-48, Fall.
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