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ICT, corporate restructuring and productivity

Author

Listed:
  • Laura Abramovsky

    () (Institute for Fiscal Studies and Institute for Fiscal Studies)

  • Rachel Griffith

    () (Institute for Fiscal Studies and IFS and Manchester)

Abstract

Stronger productivity growth in the US than the EU over the late 1990s is widely attributed to faster, more widespread adoption of information and communication technology (ICT). The literature has emphasised complementarities in production between ICT and internal restructuring as an important mechanism. We investigate the idea that increased use of ICT has facilitated outsourcing of business services, and that these are complementary activities in production because they allow firms to focus on their core competencies. This is consistent with evidence from the business literature and aggregate trends, and we show evidence from microdata that is consistent with this idea.

Suggested Citation

  • Laura Abramovsky & Rachel Griffith, 2009. "ICT, corporate restructuring and productivity," IFS Working Papers W09/10, Institute for Fiscal Studies.
    • Handle: RePEc:ifs:ifsewp:09/10
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    File URL: http://www.ifs.org.uk/wps/wp0910.pdf
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    References listed on IDEAS

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    1. Daron Acemoglu & Philippe Aghion & Rachel Griffith & Fabrizio Zilibotti, 2010. "Vertical Integration and Technology: Theory and Evidence," Journal of the European Economic Association, MIT Press, vol. 8(5), pages 989-1033, September.
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    Citations

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    Cited by:

    1. Nicholas Bloom & Raffaella Sadun & John Van Reenen, 2012. "Americans Do IT Better: US Multinationals and the Productivity Miracle," American Economic Review, American Economic Association, vol. 102(1), pages 167-201, February.
    2. Andreas Koch & Elena Biewen, 2012. "Are Firms in Business Groups More Productive? An empirical analysis based on German micro-level data with a special emphasis on the roles of regional and sectoral diversity," ERSA conference papers ersa12p795, European Regional Science Association.
    3. Holger Görg & Aoife Hanley & Ingrid Ott, 2015. "Outsourcing Foreign Services and the Internet: Evidence from Firm Level Data," The Economic and Social Review, Economic and Social Studies, vol. 46(3), pages 367-387.

    More about this item

    JEL classification:

    • D2 - Microeconomics - - Production and Organizations
    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights
    • O4 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity

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