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Information Technology and the World Economy

20 Pages Posted: 3 Feb 2006  

Dale W. Jorgenson

Harvard University - Department of Economics; National Bureau of Economic Research (NBER); Harvard University - Harvard Kennedy School (HKS)

Khuong Vu

Harvard University - Harvard Kennedy School (HKS)

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Abstract

This paper addresses the impact of investment in information technology (IT) on the recent resurgence of world economic growth. We describe the growth of the world economy, seven regions and 14 major economies during the period 1989-2003. We allocate the growth of world output between input growth and productivity and find, surprisingly, that input growth greatly predominates! The contributions of IT investment have increased in all regions, but especially in industrialized economies and Developing Asia. Differences in per capita output are explained by differences in per capita input, rather than by variations in productivity.

Keywords: Growth, investment; productivity, information technology

JEL Classification: O47

Suggested Citation

Jorgenson , Dale W. and Vu, Khuong, Information Technology and the World Economy. Scandinavian Journal of Economics, Vol. 107, No. 4, pp. 631-650, December 2005. Available at SSRN: https://ssrn.com/abstract=870661 or http://dx.doi.org/10.1111/j.1467-9442.2005.00430.x

Dale W. Jorgenson (Contact Author)

Harvard University - Department of Economics ( email )

Littauer Center
Room 122
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617-495-4661 (Phone)

National Bureau of Economic Research (NBER)

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Harvard University - Harvard Kennedy School (HKS) ( email )

79 John F. Kennedy Street
Cambridge, MA 02138
United States

Khuong Vu

Harvard University - Harvard Kennedy School (HKS) ( email )

79 John F. Kennedy Street
Cambridge, MA 02138
United States

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