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The Role of ICT on the Spanish Productivity Slowdown

  • Mas, Matilde
  • Quesada, Javier

The paper presents a quantification of Spanish productivity performance over the last two decades –with a special mention to the role played by Information and Communication Technologies (ICT). It makes use of the capital service data -recently released by the BBVA Foundation- exploiting its sectoral break down. It concentrates in twenty six industries belonging to the business (non-primary) sectors of the economy. These industries are further grouped in two clusters according to their intensity in the use of ICT capital. Our results show that the ICT cluster as a whole has presented the most dynamic behaviour. However, some important differences can be detected, both among the industries included in the cluster and also over the period under consideration. A growth accounting exercise allows us to conclude that the Spanish economy shows notable inefficiencies, as identified by negative Total Factor Productivity (TFP) contributions to productivity growth during the period 1985-2004. However, the ICT intensive cluster has reversed its behaviour since 2000, driving a modest resurgence of labour productivity in Spain over the 2000-2004 period.

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File URL: http://mpra.ub.uni-muenchen.de/15828/1/MPRA_paper_15828.pdf
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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 15828.

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Date of creation: 2006
Date of revision: 2006
Handle: RePEc:pra:mprapa:15828
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  1. Dale W. Jorgenson & Kevin J. Stiroh, 2000. "Raising the Speed Limit: U.S. Economic Growth in the Information Age," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 31(1), pages 125-236.
  2. Marcel P. Timmer & Bart van Ark, 2005. "Does information and communication technology drive EU-US productivity growth differentials?," Oxford Economic Papers, Oxford University Press, vol. 57(4), pages 693-716, October.
  3. Bresnahan, Timothy F, 1986. "Measuring the Spillovers from Technical Advance: Mainframe Computers inFinancial Services," American Economic Review, American Economic Association, vol. 76(4), pages 742-55, September.
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