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Production and Use of ICT: A Sectoral Perspective on Productivity Growth in the OECD Area

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  • Dirk Pilat
  • Franck Lee
  • Bart van Ark

Abstract

This paper examines the roles of the ICT-producing sector and of key ICT-using industries in overall productivity growth in OECD countries. The ICT manufacturing sector, in particular, has been characterised by very high rates of productivity growth in many countries and provides a large contribution to labour productivity growth in Finland, Ireland and Korea. In a few countries, notably the United States and Australia, certain ICT-using services have also experienced an above-average pick-up in productivity growth in the second half of the 1990s. Further structural reform may be needed before ICT use will also show up in the productivity statistics of other OECD countries. Differences in the measurement of productivity in ICT-producing and -using industries across countries complicate the cross-country analysis.

Suggested Citation

  • Dirk Pilat & Franck Lee & Bart van Ark, 2003. "Production and Use of ICT: A Sectoral Perspective on Productivity Growth in the OECD Area," OECD Economic Studies, OECD Publishing, vol. 2002(2), pages 47-78.
    • Handle: RePEc:oec:ecokaa:5lmqcr2jj2mn
    DOI: 10.1787/eco_studies-v2002-art9-en
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    Cited by:

    1. Paul J.J. Welfens, 2005. "A Quasi-Cobb Douglas Production Function with Sectoral Progress: Theory and Application to the New Economy," EIIW Discussion paper disbei132, Universitätsbibliothek Wuppertal, University Library.
    2. Ioannis Giotopoulos & Georgios Fotopoulos, 2010. "Intra-Industry Growth Dynamics in the Greek Services Sector: Firm-Level Estimates for ICT-Producing, ICT-Using, and Non-ICT Industries," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 36(1), pages 59-74, February.
    3. Szalavetz, Andrea, 2004. "Technológiai fejlődés, szakosodás, komplementaritás, szerkezetátalakulás [Technological development, technological complementarity and structural change]," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(4), pages 362-378.
    4. Anatoli Annenkov & Christophe Madaschi, 2005. "Labour productivity in the Nordic EU countries - a comparative overview and explanatory factors – 1998-2004," Occasional Paper Series 39, European Central Bank.
    5. Masayuki Morikawa, 2017. "Firms' Expectations About The Impact Of Ai And Robotics: Evidence From A Survey," Economic Inquiry, Western Economic Association International, vol. 55(2), pages 1054-1063, April.
    6. Lourens Broersma & Jan Oosterhaven, 2005. "Regional Labour Productivity in The Netherlands - Diversification and Agglomeration Economies," ERSA conference papers ersa05p31, European Regional Science Association.
    7. Garicano, Luis & Rossi-Hansberg, Esteban, 2012. "Organizing growth," Journal of Economic Theory, Elsevier, vol. 147(2), pages 623-656.
    8. Ad van Riet & Moreno Roma, 2006. "Competition, productivity and prices in the euro area services sector," Occasional Paper Series 44, European Central Bank.
    9. Massimo Riccaboni & Alessandro Rossi & Stefano Schiavo, 2013. "Global networks of trade and bits," Journal of Economic Interaction and Coordination, Springer;Society for Economic Science with Heterogeneous Interacting Agents, vol. 8(1), pages 33-56, April.
    10. Keun Hee Rhee, Hak K. Pyo, 2012. "Aggregate Total Factor Productivity and Resource Reallocation Effect of ICT Sectors in Korea: A Comparison with the USA, Japan and EU7," Korean Economic Review, Korean Economic Association, vol. 28, pages 189-219.
    11. Mr. Ruy Lama & Juan Pablo Medina Guzman, 2015. "Fiscal Consolidation During Times of High Unemployment: The Role of Productivity Gains and Wage Restraint," IMF Working Papers 2015/262, International Monetary Fund.
    12. Richard Dion & Robert Fay, 2008. "Understanding Productivity: A Review of Recent Technical Research," Discussion Papers 08-3, Bank of Canada.
    13. Adam P. Balcerzak & Elżbieta Rogalska, 2011. "The Significance of Intellectual Protection Rights System in the Knowledge Based Economy," Ekonomia journal, Faculty of Economic Sciences, University of Warsaw, vol. 27.
    14. Engelbrecht, Hans-Jurgen & Xayavong, Vilaphonh, 2006. "ICT intensity and New Zealand's productivity malaise: Is the glass half empty or half full?," Information Economics and Policy, Elsevier, vol. 18(1), pages 24-42, March.
    15. Vu, Khuong & Amann, Juergen, 2024. "An analysis of ICT hardware manufacturing in industrialized economies: Growth patterns, productivity performance, and driving Forces," Telecommunications Policy, Elsevier, vol. 48(1).
    16. López-Pueyo, Carmen & Mancebón, María-Jesús, 2010. "Innovation, accumulation and assimilation: Three sources of productivity growth in ICT industries," Journal of Policy Modeling, Elsevier, vol. 32(2), pages 268-285, March.
    17. Meijers, Huub, 2006. "Diffusion of the Internet and low inflation in the information economy," Information Economics and Policy, Elsevier, vol. 18(1), pages 1-23, March.
    18. Demeter, Krisztina & Chikán, Attila & Matyusz, Zsolt, 2011. "Labour productivity change: Drivers, business impact and macroeconomic moderators," International Journal of Production Economics, Elsevier, vol. 131(1), pages 215-223, May.
    19. Parteka, Aleksandra & Kordalska, Aleksandra, 2023. "Artificial intelligence and productivity: global evidence from AI patent and bibliometric data," Technovation, Elsevier, vol. 125(C).
    20. Beckstead, Desmond & Brown, Mark & Gellatly, Guy & Seaborn, Catherine, 2004. "Assessing the Growth of the New Economy across Canadian Cities and Regions: 1990-2000," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 34(4), pages 1-26.
    21. Kamps, Christophe & Meier, Carsten-Patrick & Oskamp, Frank, 2004. "Wachstum des Produktionspotentials in Deutschland bleibt schwach," Kiel Discussion Papers 414, Kiel Institute for the World Economy (IfW Kiel).
    22. Raphaela Andres & Timothy DeStefano & Thomas Niebel & Steffen Viete, 2020. "Capital incentive policies in the age of cloud computing: An empirical case study," OECD Science, Technology and Industry Working Papers 2020/07, OECD Publishing.
    23. Mostafa SALIMIFAR & Mehdi BEHNAME, 2013. "Information Technology And Productivity Growth In Islamic Countries," Romanian Journal of Economics, Institute of National Economy, vol. 36(1(45)), pages 128-135, June.

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