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Information Technology and Productivity Growth in Asia

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  • Mr. Il Houng Lee
  • Mr. Yougesh Khatri

Abstract

The contribution of the information and communication technology (ICT) sector to growth in Asian economies is clearly evident from the expenditure side (net exports) and became particularly significant in the second half of the 1990s. This paper employs an extension of the standard growth accounting framework, using estimates of stock of ICT capital (hardware, software, and telecommunications equipment), to estimate the direct contributions to growth. The contribution of ICT to growth in Asia during the 1990s is found to be mainly from capital deepening. Total factor productivity (TFP) is also decomposed (using the dual-or revenue-based-approach) into the contributions of non-ICT capital stock, ICT capital stock, and labor. TFP growth is found to be relatively small in most Asian countries.

Suggested Citation

  • Mr. Il Houng Lee & Mr. Yougesh Khatri, 2003. "Information Technology and Productivity Growth in Asia," IMF Working Papers 2003/015, International Monetary Fund.
    • Handle: RePEc:imf:imfwpa:2003/015
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    References listed on IDEAS

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    Cited by:

    1. Benjamin David, 2012. "Modélisation non-linéaire de l'impact des TIC sur la productivité du travail," Working Papers hal-04141025, HAL.
    2. Elsadig Musa Ahmed, 2017. "ICT and Human Capital Spillover Effects in Achieving Sustainable East Asian Knowledge-Based Economies," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 8(3), pages 1086-1112, September.
    3. Yao, Xuening & Watanabe, Chihiro & Li, Ying, 2009. "Institutional structure of sustainable development in BRICs: Focusing on ICT utilization," Technology in Society, Elsevier, vol. 31(1), pages 9-28.
    4. Chee Kong Wong, 2004. "Information Technology, Productivity and Economic Growth in China," Economics Discussion / Working Papers 04-21, The University of Western Australia, Department of Economics.
    5. Abdur Chowdhury, 2003. "Information technology and productivity payoff in the banking industry: evidence from the emerging markets," Journal of International Development, John Wiley & Sons, Ltd., vol. 15(6), pages 693-708.
    6. Benjamin David, 2012. "Modélisation non-linéaire de l'impact des TIC sur la productivité du travail," EconomiX Working Papers 2012-51, University of Paris Nanterre, EconomiX.
    7. Elsadig Ahmed, 2010. "Information and Communications Technology Effects on East Asian Productivity," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 1(3), pages 191-201, September.
    8. Chang Woon Nam & Sumin Nam & Peter Steinhoff, 2017. "Modi's 'Make in India' Industrial Reform Policy and East Asian Flying-Geese Paradigm," CESifo Working Paper Series 6431, CESifo.
    9. Farhadi, Maryam & Ismail, Rahmah, 2012. "Comparison of Information and Communication Technology Contribution on Newly Industrialized Countries’ Economic Growth," Jurnal Ekonomi Malaysia, Faculty of Economics and Business, Universiti Kebangsaan Malaysia, vol. 46(1), pages 165-171.
    10. Christine Zhen-Wei Qiang & Alexander Pitt & Seth Ayers, 2004. "Contribution of Information and Communication Technologies to Growth," World Bank Publications - Books, The World Bank Group, number 15059, December.
    11. Piatkowski, Marcin, 2004. "The Impact of ICT on Growth in Transition Economies," MPRA Paper 29399, University Library of Munich, Germany.
    12. Elsadig Musa Ahmed, 2006. "ICT and Human Capital Role in Achieving Knowledge-Based Economy: Applications on Malaysia's Manufacturing," Journal of Information & Knowledge Management (JIKM), World Scientific Publishing Co. Pte. Ltd., vol. 5(02), pages 117-128.

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