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The role of ICT and Business Services in Italy

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  • Enrico Saltari

Abstract

This paper studies the role played by ICT in affecting the efficiency of business services (BS) industry, using a structural disequilibrium model of the Italian economy. The Italian BS sector presents a peculiar dynamics (compared to other EU countries) in that, after initially improving its efficiency by adopting ICT, from the early 90s it stagnated. Our estimates suggest that this anomaly can be traced back to a structural deficiency in absorbing new technologies. Our contribution adds to the explanations of the slowdown of the Italian productivity.

Suggested Citation

  • Enrico Saltari, 2012. "The role of ICT and Business Services in Italy," Working Papers 152, University of Rome La Sapienza, Department of Public Economics.
  • Handle: RePEc:sap:wpaper:wp152
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    References listed on IDEAS

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    1. Oulton, Nicholas, 2001. "Must the Growth Rate Decline? Baumol's Unbalanced Growth Revisited," Oxford Economic Papers, Oxford University Press, vol. 53(4), pages 605-627, October.
    2. Enrico Saltari & Giuseppe Travaglini, 2009. "The Productivity Slowdown Puzzle. Technological and Non-technological Shocks in the Labor Market," International Economic Journal, Taylor & Francis Journals, vol. 23(4), pages 483-509.
    3. Fixler, Dennis J. & Siegel, Donald, 1999. "Outsourcing and productivity growth in services," Structural Change and Economic Dynamics, Elsevier, vol. 10(2), pages 177-194, June.
    4. Saltari Enrico & Wymer Clifford R. & Federici Daniela & Giannetti Marilena, 2012. "Technological Adoption with Imperfect Markets in the Italian Economy," Studies in Nonlinear Dynamics & Econometrics, De Gruyter, vol. 16(2), pages 1-30, April.
    5. Kox, Henk L.M. & Leeuwen, George van & Wiel, Henry van der, 2010. "Competitive, but too small - productivity and entry-exit determinants in European business services," MPRA Paper 24389, University Library of Munich, Germany.
    6. Guglielmo Barone & Federico Cingano, 2011. "Service Regulation and Growth: Evidence from OECD Countries," Economic Journal, Royal Economic Society, vol. 121(555), pages 931-957, September.
    7. van der Wiel, Henry & van Leeuwen, George & Hempell, Thomas, 2004. "ICT, Innovation and Business Performance in Services: Evidence for Germany and the Netherlands," ZEW Discussion Papers 04-06, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
    8. Calcagnini, Giorgio & Giombini, Germana & Saltari, Enrico, 2009. "Financial and labor market imperfections and investment," Economics Letters, Elsevier, vol. 102(1), pages 22-26, January.
    9. Paolo Guerrieri & Bernardo Maggi & Valentina Meliciani & Pier Carlo Padoan, 2005. "Technology Diffusion, Services and Endogenous Growth in Europe. Is the Lisbon Strategy Useful?," Rivista di Politica Economica, SIPI Spa, vol. 95(1), pages 221-268, January-F.
    10. Riccardo Tilli & Enrico Saltari, 2008. "Do labor market conditions affect the strictness of employment protection legislation?," Economics Bulletin, AccessEcon, vol. 10(4), pages 1-9.
    11. Wymer, Clifford R., 1997. "Structural Nonlinear Continuous-Time Models In Econometrics," Macroeconomic Dynamics, Cambridge University Press, vol. 1(02), pages 518-548, June.
    12. Gallouj, Faiz, 2002. "Innovation in services and the attendant old and new myths," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 31(2), pages 137-154.
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    More about this item

    Keywords

    business services; technologial adoption; disequilibrium model.;

    JEL classification:

    • L84 - Industrial Organization - - Industry Studies: Services - - - Personal, Professional, and Business Services
    • L86 - Industrial Organization - - Industry Studies: Services - - - Information and Internet Services; Computer Software
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • C51 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Construction and Estimation

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