20 Pages Posted: 3 Feb 2006
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: 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
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