The Intensity and Externality Effects of Information Technology Investments on National Productivity Growth

IEEE Transactions on Engineering Management, Vol. 54, No. 4, pp. 716-728, 2007

Posted: 9 Feb 2008

See all articles by Jungsoo Park

Jungsoo Park

Sogang University

Seung Kyoon Shin

The University of Rhode Island

Hyun-Han Shin

Yonsei University

Abstract

This study investigates the relation between information technology (IT) expenditures and national productivity based on a production estimation approach by using a pooled time-series country-level data set for the period from 1992 to 2000. The results, which confirm the findings of earlier studies on country-level IT investment effect, show IT has significant and positive effects on national productivity growth. We find that IT intensity improves the positive effect of IT investment on national productivity growth and that the existence of IT externalities, through which spillovers of knowledge and innovation occur, may eventually lead to persistent, long-term national productivity growth.

Keywords: Externality, Information Technology Investment, Intensity, National Productivity Growth.

Suggested Citation

Park, Jungsoo and Shin, Seung Kyoon and Shin, Hyun-Han, The Intensity and Externality Effects of Information Technology Investments on National Productivity Growth. IEEE Transactions on Engineering Management, Vol. 54, No. 4, pp. 716-728, 2007. Available at SSRN: https://ssrn.com/abstract=1091523

Jungsoo Park

Sogang University ( email )

35 Baekbeom-ro
Seoul, 121-742

HOME PAGE: http://hompi.sogang.ac.kr/parkjs

Seung Kyoon Shin (Contact Author)

The University of Rhode Island ( email )

7 Lippitt Road
Kingston, RI 02881
United States
401-874-5543 (Phone)

Hyun-Han Shin

Yonsei University ( email )

50 Yonsei Ro
Seodaemoon Gu
Seoul
Korea, Republic of (South Korea)
82-2-21235466 (Phone)

HOME PAGE: http://https://ysb.yonsei.ac.kr/faculty.asp?mid=n02&sOpt=&uid=32

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