ICT and Productivity: A Review of the Literature
In this report we review the literature on the relationship between ICT and productivity. In Sect. 1 we discuss in broad terms the theoretical relationship between ICT and productivity, while in Sect. 2 we present the growth accounting methodology, which tries to measure the contributions to growth from difference sources (ICT and non ICT capital, human capital, total factor productivity). Within the growth-accounting methodology, in Sect. 3, we discuss the U.S. - E.U. productivity gap and the role of ICTs, and we show that the latter are responsible for the U.S. acceleration in productivity growth observed in the period 1996-2006 and for the widening of the U.S. – E.U. productivity gap in the same period. Then, in Sect. 4, we move to regression based studies, and we review the literature that uses macro, meso (sectoral) and firm/plant level data. While the overall message on the importance of ICT for growth coming from this literature is consistent with the findings of the studies based on growth accounting, the econometric approach allows researchers to investigate a wider set of questions. In particular, we focus on the role of ICT as a General Purpose Technology aspects and we review the literature studying the role of ICT and complementary assets in firms' productivity and the literature exploring the positive externalities related to ICT capital and the impact of ICT usage on the innovative capability of firms. Finally, we also review the literature on the relationship between ICT infrastructures and GDP growth.
|Date of creation:||Sep 2013|
|Date of revision:|
|Contact details of provider:|| Postal: C/ Inca Garcilaso, s/n 41092 Seville|
Phone: +34 954 48 8318
Fax: +34 954 48 8300
Web page: https://ec.europa.eu/jrc/en/institutes/ipts
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Francesco Caselli, 2004.
"Accounting for Cross-Country Income Differences,"
NBER Working Papers
10828, National Bureau of Economic Research, Inc.
- Stephen D. Oliner & Daniel E. Sichel, 2002.
"Information technology and productivity: where are we now and where are we going?,"
Finance and Economics Discussion Series
2002-29, Board of Governors of the Federal Reserve System (U.S.).
- Stephen D. Oliner & Daniel E. Sichel, 2002. "Information technology and productivity: where are we now and where are we going?," Economic Review, Federal Reserve Bank of Atlanta, issue Q3, pages 15-44.
- Oliner, Stephen D. & Sichel, Daniel E., 2003. "Information technology and productivity: where are we now and where are we going?," Journal of Policy Modeling, Elsevier, vol. 25(5), pages 477-503, July.
- Dale W. Jorgenson & Mun S. Ho & Kevin J. Stiroh, 2005. "Productivity, Volume 3: Information Technology and the American Growth Resurgence," MIT Press Books, The MIT Press, edition 1, volume 3, number 0262101114, June.
- Polder, Michael & Van Leeuwen, George & Mohnen, Pierre & Raymond, Wladimir, 2010.
"Product, process and organizational innovation: drivers, complementarity, and productivity effects,"
23719, University Library of Munich, Germany.
- Michael Polder & George van Leeuwen & Pierre Mohnen & Wladimir Raymond, 2010. "Product, Process and Organizational Innovation: Drivers, Complementarity and Productivity Effects," CIRANO Working Papers 2010s-28, CIRANO.
- Polder, Michael & Leeuwen, George van & Mohnen, Pierre & Raymond, Wladimir, 2010. "Product, process and organizational innovation: drivers, complementarity and productivity effects," MERIT Working Papers 035, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
- Michael Polder & George van Leeuwen & Pierre Mohnen & Wladimir Raymond, 2010. "Product, Process and Organizational Innovation: Drivers, Complementarity and Productivity Effects," DRUID Working Papers 10-24, DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies.
- Berndt, Ernst R. & Morrison, Catherine J., 1992.
"High-tech capital formation and economic performance in U.S. manufacturing industries : an exploratory analysis,"
3419-92., Massachusetts Institute of Technology (MIT), Sloan School of Management.
- Berndt, Ernst R. & Morrison, Catherine J., 1995. "High-tech capital formation and economic performance in U.S. manufacturing industries An exploratory analysis," Journal of Econometrics, Elsevier, vol. 65(1), pages 9-43, January.
- Leonardo Becchetti & Fabrizio Adriani, 2005.
"Does the digital divide matter? The role of information and communication technology in cross-country level and growth estimates,"
Economics of Innovation and New Technology,
Taylor & Francis Journals, vol. 14(6), pages 435-453.
- Leonardo Becchetti & Fabrizio Adriani, 2003. "Does the Digital Divide Matter? The Role of Information and Communication Technology in Cross-country Level and Growth Estimates?," CEIS Research Paper 4, Tor Vergata University, CEIS.
- Luis Garicano & Esteban Rossi-Hansberg, 2005.
"Organization and Inequality in a Knowledge Economy,"
NBER Working Papers
11458, National Bureau of Economic Research, Inc.
- Luis Garicano & Esteban Rossi-Hansberg, 2006. "Organization and Inequality in a Knowledge Economy," The Quarterly Journal of Economics, Oxford University Press, vol. 121(4), pages 1383-1435.
- Saint-Paul, Gilles, 1999.
"The Political Economy of Employment Protection,"
CEPR Discussion Papers
2109, C.E.P.R. Discussion Papers.
- Federico Biagi & Maria Laura Parisi, 2012. "Are ICT, Human Capital and Organizational Capital Complementary in Production? Evidence from Italian Panel Data," JRC-IPTS Working Papers JRC75890, Institute for Prospective and Technological Studies, Joint Research Centre.
- Vincenzo Spiezia, 2012. "ICT investments and productivity: Measuring the contribution of ICTS to growth," OECD Journal: Economic Studies, OECD Publishing, vol. 2012(1), pages 199-211.
- Erik Brynjolfsson & Lorin M. Hitt, 2003.
"Computing Productivity: Firm-Level Evidence,"
The Review of Economics and Statistics,
MIT Press, vol. 85(4), pages 793-808, November.
- Dale W. Jorgenson & Mun S. Ho & Kevin J. Stiroh, 2006.
"Projecting Productivity Growth: Lessons from the US Growth Resurgence,"
in: The New Economy and Beyond, chapter 2
- Dale W. Jorgenson & Mun S. Ho & Kevin J. Stiroh, 2002. "Projecting productivity growth: lessons from the U.S. growth resurgence," Economic Review, Federal Reserve Bank of Atlanta, issue Q3, pages 1-13.
- Ho, Mun & Jorgenson, Dale & Stiroh, Kevin, 2002. "Projecting Productivity Growth: Lessons from the U.S. Growth Resurgence," Discussion Papers dp-02-42, Resources For the Future.
- Francesco Venturini, 2009.
"The long-run impact of ICT,"
Springer, vol. 37(3), pages 497-515, December.
- Kenneth Arrow, 1962. "Economic Welfare and the Allocation of Resources for Invention," NBER Chapters, in: The Rate and Direction of Inventive Activity: Economic and Social Factors, pages 609-626 National Bureau of Economic Research, Inc.
- Susanto Basu & John G. Fernald, 2008.
"Information and communications technology as a general purpose technology: evidence from U.S. industry data,"
Federal Reserve Bank of San Francisco, pages 1-15.
- Susanto Basu & John Fernald, 2007. "Information and Communications Technology as a General-Purpose Technology: Evidence from US Industry Data," German Economic Review, Verein für Socialpolitik, vol. 8, pages 146-173, 05.
- Susanto Basu & John G. Fernald, 2006. "Information and communications technology as a general-purpose technology: evidence from U.S industry data," Working Paper Series 2006-29, Federal Reserve Bank of San Francisco.
- Dale W. Jorgenson & Mun S. Ho & Kevin J. Stiroh, 2007.
"A retrospective look at the U.S. productivity growth resurgence,"
277, Federal Reserve Bank of New York.
- Dale W. Jorgenson & Mun S. Ho & Kevin J. Stiroh, 2008. "A Retrospective Look at the U.S. Productivity Growth Resurgence," Journal of Economic Perspectives, American Economic Association, vol. 22(1), pages 3-24, Winter.
- Bresnahan, Timothy F. & Trajtenberg, M., 1995.
"General purpose technologies 'Engines of growth'?,"
Journal of Econometrics,
Elsevier, vol. 65(1), pages 83-108, January.
- Mark Doms & Eric J. Bartelsman, 2000.
"Understanding Productivity: Lessons from Longitudinal Microdata,"
Journal of Economic Literature,
American Economic Association, vol. 38(3), pages 569-594, September.
- Eric J. Bartelsman & Mark Doms, 2000. "Understanding productivity: lessons from longitudinal microdata," Finance and Economics Discussion Series 2000-19, Board of Governors of the Federal Reserve System (U.S.).
- Stiroh, Kevin J, 2002. "Are ICT Spillovers Driving the New Economy?," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 48(1), pages 33-57, March.
- 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.
- Paul Conway & Donato de Rosa & Giuseppe Nicoletti & Faye Steiner, 2006. "Regulation, Competition and Productivity Convergence," OECD Economics Department Working Papers 509, OECD Publishing.
- Mary O'Mahony & Michela Vecchi, 2005. "Quantifying the Impact of ICT Capital on Output Growth: A Heterogeneous Dynamic Panel Approach," Economica, London School of Economics and Political Science, vol. 72(288), pages 615-633, November.
- James Bessen, 2002. "Technology Adoption Costs and Productivity Growth: The Transition to Information Technology," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 5(2), pages 443-469, April.
- N. Gregory Mankiw & David Romer & David N. Weil, 1990.
"A Contribution to the Empirics of Economic Growth,"
NBER Working Papers
3541, National Bureau of Economic Research, Inc.
- Paul M Romer, 1999.
"Increasing Returns and Long-Run Growth,"
Levine's Working Paper Archive
2232, David K. Levine.
- Paul Romer, 1989.
"Endogenous Technological Change,"
NBER Working Papers
3210, National Bureau of Economic Research, Inc.
- Kevin J. Stiroh, 2001.
"Information technology and the U.S. productivity revival: what do the industry data say?,"
115, Federal Reserve Bank of New York.
- Kevin J. Stiroh, 2002. "Information Technology and the U.S. Productivity Revival: What Do the Industry Data Say?," American Economic Review, American Economic Association, vol. 92(5), pages 1559-1576, December.
- Dale W. Jorgenson, 2001. "Information Technology and the U.S. Economy," American Economic Review, American Economic Association, vol. 91(1), pages 1-32, March.
- Dirk Pilat & Paul Schreyer, 2001. "Measuring productivity," OECD Economic Studies, OECD Publishing, vol. 2001(2), pages 127-170.
- Even Caroli & John Van Reenen, 1999. "Organization, skill and technology: evidence from a panel of British and French establishments," IFS Working Papers W99/23, Institute for Fiscal Studies.
- Ana Rincon & Michela VECCHI & Francesco VENTURINI, 2012. "ICT spillovers, absorptive capacity and productivity performance," Quaderni del Dipartimento di Economia, Finanza e Statistica 103/2012, Università di Perugia, Dipartimento Economia.
- Alessandra Colecchia & Paul Schreyer, 2002. "The contribution of information and communication technologies to economic growth in nine OECD countries," OECD Economic Studies, OECD Publishing, vol. 2002(1), pages 153-171.
- Lucas, Robert Jr., 1988. "On the mechanics of economic development," Journal of Monetary Economics, Elsevier, vol. 22(1), pages 3-42, July.
- 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.
- Jack E. Triplett, 1999. "The Solow productivity paradox: what do computers do to productivity?," Canadian Journal of Economics, Canadian Economics Association, vol. 32(2), pages 309-334, April.
- Kenneth I. Carlaw & Richard G. Lipsey, 2003. "Productivity, Technology and Economic Growth: What is the Relationship?," Journal of Economic Surveys, Wiley Blackwell, vol. 17(3), pages 457-495, 07.
- Simon Broadbent, 1997. "Trade with China: Do the Figures Add up?," NIESR Discussion Papers 118, National Institute of Economic and Social Research.
- Paola Giuri & Salvatore Torrisi & Natalia Zinovyeva, 2008. "ICT, skills, and organizational change: evidence from Italian manufacturing firms," Industrial and Corporate Change, Oxford University Press, vol. 17(1), pages 29-64, February.
- Black, Sandra E & Lynch, Lisa M, 1996. "Human-Capital Investments and Productivity," American Economic Review, American Economic Association, vol. 86(2), pages 263-67, May.
When requesting a correction, please mention this item's handle: RePEc:ipt:decwpa:2013-09. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Institute Publication Officer)The email address of this maintainer does not seem to be valid anymore. Please ask Institute Publication Officer to update the entry or send us the correct email address
If references are entirely missing, you can add them using this form.