ICT and productivity: conclusions from the empirical literature

doi:10.1016/J.INFOECOPOL.2012.12.002

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ICT and productivity: conclusions from the empirical literature

Journal Article•DOI•

ICT and productivity: conclusions from the empirical literature

Melisande Cardona¹, Tobias Kretschmer¹, Tobias Kretschmer², Thomas Strobel²•Institutions (2)

Ludwig Maximilian University of Munich¹, Ifo Institute for Economic Research²

01 Sep 2013-Information Economics and Policy (INFORMATION ECONOMICS AND POLICY)-Vol. 25, Iss: 3, pp 109-125

TL;DR: An overview of the empirical literature on ICT and productivity and the notion of ICT being a General Propose Technology (GPT) enabling further innovations is shed and most of the GPT evidence is found for the US, while evidence for European countries is harder to come by.

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About: This article is published in Information Economics and Policy.The article was published on 2013-09-01. It has received 524 citations till now. The article focuses on the topics: Productivity & Empirical research.

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Journal Article•DOI•

ICT and Economic Growth – Comparing Developing, Emerging and Developed Countries

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Thomas Niebel

15 Dec 2014-Social Science Research Network

TL;DR: In this article, the impact of information and communication technologies (ICT) on economic growth in developing, emerging and developed countries is analyzed based on a sample of 59 countries for the period 1995 to 2010.

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Abstract: This paper analyzes the impact of information and communication technologies (ICT) on economic growth in developing, emerging and developed countries. It is based on a sample of 59 countries for the period 1995 to 2010. Various panel data regressions confirm the positive relationship between ICT capital and GDP growth. The regressions for the subsamples of developing, emerging and developed countries do not reveal statistically significant differences of the output elasticity of ICT between these three country groups.

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332 citations

Cites background or result from "ICT and productivity: conclusions f..."

...Dahl et al. (2011) confirm these findings for eight European countries using EU KLEMS data (O’Mahony and Timmer, 2009). Another strand of the literature focuses on just communication technology (CT). Roller and Waverman (2001) find a causal relationship between CT and GDP for 21 OECD countries....
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...(2010), and Cardona et al. (2013) list a comprehensive set of studies applying different methodologies. To date there is rather weak and ambiguous empirical evidence on the contribution of ICT investments on economic growth for emerging and especially developing countries. Despite the rather ambiguous empirical evidence, the World Bank (2012) takes an optimistic view stating that “Information and communication technologies (ICTs) have great promise to reduce poverty, increase productivity, boost economic growth (. . . )”. The weak and ambiguous empirical evidence of the impact of ICT in developing countries may largely be driven by the lack of high quality micro and macro level data sets on ICT for these countries. A priori, there may be valid reasons why the impact of ICT on growth in developing and emerging countries is different than in developed countries. On the one hand, developing and emerging countries might be lacking absorptive capacities like an appropriate level of human capital or other complementarity factors such as R&D expenditures3 and therefore gain less than developed countries from investments in ICT. On the other hand, ICT could enable developing and emerging countries to ‘leapfrog’ traditional methods of increasing productivity as mentioned by Steinmueller (2001). The additional productivity gains could be triggered by “ICT-related spillovers or network effects”4 as ICT may lower transaction costs and speed up the process of knowledge creation....
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...Dahl et al. (2011) confirm these findings for eight European countries using EU KLEMS data (O’Mahony and Timmer, 2009)....
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...Czernich et al. (2011) support the finding by Roller and Waverman (2001) on the importance of communication technology....
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...…country level with the majority of studies showing the productivity effect of ICT as positive and economically significant.2 Recent literature reviews by Draca et al. (2007), Van Reenen et al. (2010), and Cardona et al. (2013) list a comprehensive set of studies applying different methodologies....
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Journal Article•DOI•

ICT and economic growth : comparing developing, emerging and developed countries

[...]

Thomas Niebel

01 Apr 2018-World Development

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305 citations

Journal Article•DOI•

The dynamics of ICT, foreign direct investment, globalization and economic growth: Panel estimation robust to heterogeneity and cross-sectional dependence

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Zahid Latif¹, Yang Mengke¹, Shahid Latif, Liu Ximei¹, Zulfiqar Hussain Pathan¹, Shafaq Salam¹, Zeng Jianqiu¹ - Show less +3 more•Institutions (1)

Beijing University of Posts and Telecommunications¹

01 Dec 2017-Telematics and Informatics

TL;DR: Policy recommendations for improving ICT are suggested with the focus on economic growth, trade openness and facilitation of foreign investment in BRICS countries, and the long-run elasticities between ICT and economic growth are suggested.

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221 citations

Journal Article•DOI•

The role of ICT and innovation in enhancing organizational performance: The catalysing effect of corporate entrepreneurship

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Manal M. Yunis¹, Abbas Tarhini¹, Abdul-Nasser Kassar¹•Institutions (1)

Lebanese American University¹

01 Dec 2017-Journal of Business Research

TL;DR: In this article, the authors developed and tested a framework that depicts and examines the nature of the relationship between ICT-adoption/use and organizational performance in the Lebanese market, taking into consideration the impact that corporate entrepreneurship may have on this relationship.

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219 citations

Journal Article•DOI•

Has the Internet Fostered Inclusive Innovation in the Developing World

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Caroline Paunov¹, Valentina Rollo²•Institutions (2)

Organisation for Economic Co-operation and Development¹, International Trade Centre²

01 Feb 2016-World Development

TL;DR: In this paper, the authors test for heterogeneous spillover impacts on groups of firms that are commonly less engaged in innovation and on firms with different productivity levels, and find that the returns to productivity are larger for firms that commonly engage less in innovation.

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180 citations

Cites background from "ICT and productivity: conclusions f..."

...Differences in organizational and managerial capabilities are among the reasons why ICT contributed more to US than to Europe’s productivity (Cardona et al., 2013)....
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References

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Journal Article•DOI•

Investigating Causal Relations by Econometric Models and Cross-Spectral Methods

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Clive W. J. Granger¹•Institutions (1)

University of California, San Diego¹

01 Aug 1969-Econometrica

TL;DR: In this article, the cross spectrum between two variables can be decomposed into two parts, each relating to a single causal arm of a feedback situation, and measures of causal lag and causal strength can then be constructed.

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Abstract: There occurs on some occasions a difficulty in deciding the direction of causality between two related variables and also whether or not feedback is occurring. Testable definitions of causality and feedback are proposed and illustrated by use of simple two-variable models. The important problem of apparent instantaneous causality is discussed and it is suggested that the problem often arises due to slowness in recording information or because a sufficiently wide class of possible causal variables has not been used. It can be shown that the cross spectrum between two variables can be decomposed into two parts, each relating to a single causal arm of a feedback situation. Measures of causal lag and causal strength can then be constructed. A generalisation of this result with the partial cross spectrum is suggested.

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16,349 citations

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Endogenous Technological Change

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Paul M. Romer

01 Oct 1990-Journal of Political Economy

TL;DR: In this paper, the authors show that the stock of human capital determines the rate of growth, that too little human capital is devoted to research in equilibrium, that integration into world markets will increase growth rates, and that having a large population is not sufficient to generate growth.

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Abstract: Growth in this model is driven by technological change that arises from intentional investment decisions made by profit-maximizing agents. The distinguishing feature of the technology as an input is that it is neither a conventional good nor a public good; it is a nonrival, partially excludable good. Because of the nonconvexity introduced by a nonrival good, price-taking competition cannot be supported. Instead, the equilibrium is one with monopolistic competition. The main conclusions are that the stock of human capital determines the rate of growth, that too little human capital is devoted to research in equilibrium, that integration into world markets will increase growth rates, and that having a large population is not sufficient to generate growth.

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12,469 citations

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Technical change and the aggregate production function

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Robert M. Solow

01 Aug 1957-The Review of Economics and Statistics

TL;DR: In this article, the authors proposed a method to improve the performance of the system by using the information of the user's interaction with the system and the system itself, including the interaction between the two parties.

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Abstract: В статье производится анализ агрегированной производственной функции, вводится аппарат, позволяющий различать движение вдоль такой функции от ее сдвигов. На основании сделанных в статье предположений делаются выводы о характере технического прогресса и технологических изменений. Существенное внимание уделяется вариантам применения концепции агрегированной производственной функции.

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10,850 citations

Book•

Innovation and growth in the global economy

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Gene M. Grossman, Elhanan Helpman

01 Jan 1991

TL;DR: Grossman and Helpman as discussed by the authors developed a unique approach in which innovation is viewed as a deliberate outgrowth of investments in industrial research by forward-looking, profit-seeking agents.

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Abstract: Traditional growth theory emphasizes the incentives for capital accumulation rather than technological progress. Innovation is treated as an exogenous process or a by-product of investment in machinery and equipment. Grossman and Helpman develop a unique approach in which innovation is viewed as a deliberate outgrowth of investments in industrial research by forward-looking, profit-seeking agents.

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6,911 citations

Journal Article•DOI•

Geographic Localization of Knowledge Spillovers as Evidenced by Patent Citations

[...]

Adam B. Jaffe¹, Manuel Trajtenberg², Rebecca Henderson³•Institutions (3)

Harvard University¹, Tel Aviv University², Massachusetts Institute of Technology³

01 Aug 1993-Quarterly Journal of Economics

TL;DR: In this paper, the authors compare the geographic location of patent citations to those of cited patents, as evidence of the extent to which knowledge spillovers are geographically localized, and find that citations to U.S. patents are more likely to come from the U. S., and more likely than coming from the same state and SMSA as cited patents than one would expect based only on the preexisting concentration of related research activity.

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Abstract: We compare the geographic location of patent citations to those of the cited patents, as evidence of the extent to which knowledge spillovers are geographically localized. We find that citations to U.S. patents are more likely to come from the U.S., and more likely to come from the same state and SMSA as the cited patents than one would expect based only on the preexisting concentration of related research activity. These effects are particularly significant at the local (SMSA) level, and are particularly apparent in early citations.

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5,937 citations