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ICT, corporate restructuring and productivity

  • Laura Abramovsky


    (Institute for Fiscal Studies and Institute for Fiscal Studies)

  • Rachel Griffith


    (Institute for Fiscal Studies and IFS and Manchester)

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.

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Paper provided by Institute for Fiscal Studies in its series IFS Working Papers with number W09/10.

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Date of creation: Apr 2009
Date of revision:
Handle: RePEc:ifs:ifsewp:09/10
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