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Information and Communication Technologies in a Multi-Sector Endogenous Growth Model

  • Evangelia Vourvachaki

    (London School of Economics)

This paper investigates the impact of Information and Communication Technologies (ICT) on growth in an economy, consisting of three sectors, ICT-producing, ICT-using and non-ICT-using. The benefits from ICT come from the falling prices of the ICT-using sector's good, which is used for the production of intermediate goods. Their falling prices provide incentives for investment for sectors using them, so the non-ICT using sector experiences sustained growth driven by capital accumulation. Rates of growth across the three sectors differ, but the aggregate economy is on a balanced growth path with constant labour shares across sectors. US evidence confirms the model's predictions.

(This abstract was borrowed from another version of this item.)

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Paper provided by Money Macro and Finance Research Group in its series Money Macro and Finance (MMF) Research Group Conference 2005 with number 10.

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Date of creation: 03 Sep 2005
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Handle: RePEc:mmf:mmfc05:10
Contact details of provider: Web page: http://www.essex.ac.uk/afm/mmf/index.html

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