ICT and Productivity: A Review of the Literature

Federico Biagi ()
Additional contact information
Federico Biagi: European Commission JRC, https://joint-research-centre.ec.europa.eu/index_en

No 2013-09, JRC Working Papers on Digital Economy from Joint Research Centre

Abstract: 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.

Keywords: ICT; labour productivity; total factor productivity; innovation (search for similar items in EconPapers)
JEL-codes: D22 D24 E01 O30 O47 (search for similar items in EconPapers)
Pages: 72 pages
Date: 2013-09
New Economics Papers: this item is included in nep-cse, nep-eff and nep-ict
References: Add references at CitEc
Citations: View citations in EconPapers (44)

Published

Downloads: (external link)
https://publications.jrc.ec.europa.eu/repository/handle/JRC84470 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ipt:decwpa:2013-09

Access Statistics for this paper

More papers in JRC Working Papers on Digital Economy from Joint Research Centre Contact information at EDIRC.
Bibliographic data for series maintained by Publication Officer ().