IDEAS home Printed from https://ideas.repec.org/a/eee/telpol/v40y2016i5p398-411.html
   My bibliography  Save this article

The impact of information technology on postwar US economic growth

Author

Listed:
  • Jorgenson, Dale W.
  • Ho, Mun S.
  • Samuels, Jon D.

Abstract

We provide detailed information on the crucial role of information technology in the postwar growth of the U.S. economy, from the development of the telecommunications services and the telecommunications equipment industries through the successful commercialization of semiconductor technology and the ongoing shift to cloud-based IT services. Our industry-level data set reveals that productivity gains over the postwar period originated disproportionally in industries that produce IT, but the replication of established technologies through growth of capital and labor inputs explains by far the largest proportion of U.S. economic growth. We find that the substantial growth deceleration during the Great Recession was driven by modestly negative aggregate productivity growth, but that only a minor portion of the drop in the growth rate was due to the IT-producing industries.

Suggested Citation

  • Jorgenson, Dale W. & Ho, Mun S. & Samuels, Jon D., 2016. "The impact of information technology on postwar US economic growth," Telecommunications Policy, Elsevier, vol. 40(5), pages 398-411.
    • Handle: RePEc:eee:telpol:v:40:y:2016:i:5:p:398-411
    DOI: 10.1016/j.telpol.2015.03.001
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0308596115000336
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.telpol.2015.03.001?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Dale W. Jorgenson & Mun S. Ho & Kevin J. Stiroh, 2008. "A Retrospective Look at the U.S. Productivity Growth Resurgence," Journal of Economic Perspectives, American Economic Association, vol. 22(1), pages 3-24, Winter.
    2. James Manyika & David Hunt & Scott Nyquist & Jaana Remes & Vikram Malhotra & Lenny Medonca & Byron Auguste & Samantha Test, 2011. "Growth and Renewal in the United States: Retooling America's Economic Engine," Journal of Applied Corporate Finance, Morgan Stanley, vol. 23(1), pages 8-19, January.
    3. Chad Syverson, 2013. "Will History Repeat Itself? Comments on “Is the Information Technology Revolution Over?”," International Productivity Monitor, Centre for the Study of Living Standards, vol. 25, pages 37-40, Spring.
    4. Chad Syverson, 2011. "What Determines Productivity?," Journal of Economic Literature, American Economic Association, vol. 49(2), pages 326-365, June.
    5. David M. Byrne & Stephen D. Oliner & Daniel E. Sichel, 2013. "Is the Information Technology Revolution Over?," International Productivity Monitor, Centre for the Study of Living Standards, vol. 25, pages 20-36, Spring.
    6. John G. Fernald, 2015. "Productivity and Potential Output before, during, and after the Great Recession," NBER Macroeconomics Annual, University of Chicago Press, vol. 29(1), pages 1-51.
    7. Dale W. Jorgenson, 2012. "The World KLEMS Initiative," International Productivity Monitor, Centre for the Study of Living Standards, vol. 24, pages 5-19, Fall.
    8. Unni Pillai, 2013. "A Model of Technological Progress in the Microprocessor Industry," Journal of Industrial Economics, Wiley Blackwell, vol. 61(4), pages 877-912, December.
    9. Dale W. Jorgenson, 1966. "The Embodiment Hypothesis," Journal of Political Economy, University of Chicago Press, vol. 74(1), pages 1-1.
    10. Susan Fleck & Steven Rosenthal & Matthew Russell & Erich H. Strassner & Lisa Usher, 2014. "A Prototype BEA/BLS Industry-Level Production Account for the United States," NBER Chapters, in: Measuring Economic Sustainability and Progress, pages 323-372, National Bureau of Economic Research, Inc.
    11. Michael J. Harper & Brent R. Moulton & Steven Rosenthal & David B. Wasshausen, 2009. "Integrated GDP-Productivity Accounts," American Economic Review, American Economic Association, vol. 99(2), pages 74-79, May.
    12. Dale W. Jorgenson & Marcel P. Timmer, 2011. "Structural Change in Advanced Nations: A New Set of Stylised Facts," Scandinavian Journal of Economics, Wiley Blackwell, vol. 113(1), pages 1-29, March.
    13. Martin Neil Baily & James Manyika & Shalabh Gupta, 2013. "U.S. Productivity Growth: An Optimistic Perspective," International Productivity Monitor, Centre for the Study of Living Standards, vol. 25, pages 3-12, Spring.
    14. Paul Schreyer, 2001. "The OECD Productivity Manual: A Guide to the Measurement of Industry-Level and Aggregate Productivity," International Productivity Monitor, Centre for the Study of Living Standards, vol. 2, pages 37-51, Spring.
    15. Timmer,Marcel P. & Inklaar,Robert & O'Mahony,Mary & Ark,Bart van, 2013. "Economic Growth in Europe," Cambridge Books, Cambridge University Press, number 9781107412446, November.
    16. Matilde Mas & Robert Stehrer (ed.), 2012. "Industrial Productivity in Europe," Books, Edward Elgar Publishing, number 14369.
    17. Dale W. Jorgenson & Paul Schreyer, 2013. "Industry-Level Productivity Measurement And The 2008 System Of National Accounts," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 59(2), pages 185-211, June.
    18. Dale W. Jorgenson & Marcel P. Timmer, "undated". "Structural Change in Advanced Nations," Working Paper 13525, Harvard University OpenScholar.
    19. Jorgenson, Dale W. & Vu, Khuong Minh, 2013. "The emergence of the new economic order: Growth in the G7 and the G20," Journal of Policy Modeling, Elsevier, vol. 35(3), pages 389-399.
    20. repec:aei:rpaper:37301 is not listed on IDEAS
    21. Dale W. Jorgenson & Mun S. Ho & Kevin J. Stiroh, 2005. "Productivity, Volume 3: Information Technology and the American Growth Resurgence," MIT Press Books, The MIT Press, edition 1, volume 3, number 0262101114, December.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Hichem Saidi & Abdelaziz Hakimi & Houssem Rachdi, 2024. "On the Technology-Growth Relationship: Does the Institutional Quality Matter? A Panel Simultaneous Equation Framework," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 15(1), pages 3439-3465, March.
    2. Ballestar, María Teresa & Díaz-Chao, Ángel & Sainz, Jorge & Torrent-Sellens, Joan, 2020. "Knowledge, robots and productivity in SMEs: Explaining the second digital wave," Journal of Business Research, Elsevier, vol. 108(C), pages 119-131.
    3. Vu, Khuong & Amann, Juergen, 2024. "An analysis of ICT hardware manufacturing in industrialized economies: Growth patterns, productivity performance, and driving Forces," Telecommunications Policy, Elsevier, vol. 48(1).
    4. Lange, Steffen & Pohl, Johanna & Santarius, Tilman, 2020. "Digitalization and energy consumption. Does ICT reduce energy demand?," Ecological Economics, Elsevier, vol. 176(C).
    5. Sawng, Yeong-wha & Kim, Pang-ryong & Park, JiYoung, 2021. "ICT investment and GDP growth: Causality analysis for the case of Korea," Telecommunications Policy, Elsevier, vol. 45(7).
    6. Tilman Santarius & Johanna Pohl & Steffen Lange, 2020. "Digitalization and the Decoupling Debate: Can ICT Help to Reduce Environmental Impacts While the Economy Keeps Growing?," Sustainability, MDPI, vol. 12(18), pages 1-20, September.
    7. Pradhan, Rudra P. & Arvin, Mak B. & Nair, Mahendhiran & Bennett, Sara E. & Bahmani, Sahar, 2019. "Short-term and long-term dynamics of venture capital and economic growth in a digital economy: A study of European countries," Technology in Society, Elsevier, vol. 57(C), pages 125-134.
    8. Hui Zhang & Yuyao Qian & Liying Yu & Zheng Wang, 2020. "Integrated Development of Information Technology and the Real Economy in China Based on Provincial Panel Data," Sustainability, MDPI, vol. 12(17), pages 1-17, August.
    9. Appiah-Otoo, Isaac & Song, Na, 2021. "The impact of ICT on economic growth-Comparing rich and poor countries," Telecommunications Policy, Elsevier, vol. 45(2).
    10. Jinlin Li & Litai Chen & Ying Chen & Jiawen He, 2022. "Digital economy, technological innovation, and green economic efficiency—Empirical evidence from 277 cities in China," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 43(3), pages 616-629, April.
    11. Oughton, Edward J. & Frias, Zoraida, 2018. "The cost, coverage and rollout implications of 5G infrastructure in Britain," Telecommunications Policy, Elsevier, vol. 42(8), pages 636-652.
    12. Ronald Ravinesh Kumar & Peter Josef Stauvermann & Nikeel Kumar & Syed Jawad Hussain Shahzad, 2019. "Exploring the effect of ICT and tourism on economic growth: a study of Israel," Economic Change and Restructuring, Springer, vol. 52(3), pages 221-254, August.
    13. Nakano, Satoshi & Washizu, Ayu, 2018. "Induced effects of smart food/agri-systems in Japan: Towards a structural analysis of information technology," Telecommunications Policy, Elsevier, vol. 42(10), pages 824-835.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Dale W. Jorgenson & Mun S. Ho & Jon D. Samuels, 2017. "Educational Attainment and the Revival of US Economic Growth," NBER Chapters, in: Education, Skills, and Technical Change: Implications for Future US GDP Growth, pages 23-60, National Bureau of Economic Research, Inc.
    2. Dale W. Jorgenson, 2012. "The World KLEMS Initiative," International Productivity Monitor, Centre for the Study of Living Standards, vol. 24, pages 5-19, Fall.
    3. Dale W. Jorgenson & Mun S. Ho & Jon D. Samuels, 2012. "Information Technology and US Productivity Growth: Evidence from a Prototype Industry Production Account," Chapters, in: Matilde Mas & Robert Stehrer (ed.), Industrial Productivity in Europe, chapter 2, Edward Elgar Publishing.
    4. Peter Bauer & Igor Fedotenkov & Aurelien Genty & Issam Hallak & Peter Harasztosi & David Martinez Turegano & David Nguyen & Nadir Preziosi & Ana Rincon-Aznar & Miguel Sanchez Martinez, 2020. "Productivity in Europe: Trends and drivers in a service-based economy," JRC Research Reports JRC119785, Joint Research Centre.
    5. Thomas Strobel, 2014. "Directed technological change, skill complementarities and sectoral productivity growth: evidence from industrialized countries during the new economy," Journal of Productivity Analysis, Springer, vol. 42(3), pages 255-275, December.
    6. Marcel P. Timmer & Ilya B. Voskoboynikov, 2014. "Is Mining Fuelling Long-Run Growth in Russia? Industry Productivity Growth Trends Since 1995," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 60(S2), pages 398-422, November.
    7. John G. Fernald, 2015. "Productivity and Potential Output before, during, and after the Great Recession," NBER Macroeconomics Annual, University of Chicago Press, vol. 29(1), pages 1-51.
    8. Gilbert Cette, 2014. "Does ICT Remain a Powerful Engine of Growth," Post-Print hal-01463929, HAL.
    9. Raquel Ortega‐Argilés & Mariacristina Piva & Marco Vivarelli, 2014. "The transatlantic productivity gap: Is R&D the main culprit?," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 47(4), pages 1342-1371, November.
    10. Jorgenson, Dale W. & Vu, Khuong M., 2016. "The outlook for emerging economies," Journal of Policy Modeling, Elsevier, vol. 38(4), pages 670-682.
    11. Erumban, Abdul Azeez & Das, Deb Kusum & Aggarwal, Suresh & Das, Pilu Chandra, 2019. "Structural change and economic growth in India," Structural Change and Economic Dynamics, Elsevier, vol. 51(C), pages 186-202.
    12. David M. Byrne & Stephen D. Oliner & Daniel E. Sichel, 2018. "How Fast are Semiconductor Prices Falling?," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 64(3), pages 679-702, September.
    13. Nicholas Crafts & Pieter Woltjer, 2021. "Growth Accounting In Economic History: Findings, Lessons And New Directions," Journal of Economic Surveys, Wiley Blackwell, vol. 35(3), pages 670-696, July.
    14. Jorgenson, Dale W. & Vu, Khuong M., 2010. "Potential growth of the world economy," Journal of Policy Modeling, Elsevier, vol. 32(5), pages 615-631, September.
    15. Chad Syverson, 2017. "Challenges to Mismeasurement Explanations for the US Productivity Slowdown," Journal of Economic Perspectives, American Economic Association, vol. 31(2), pages 165-186, Spring.
    16. Marcel P. Timmer & Robert Inklaar & Mary O'Mahony & Bart van Ark, 2011. "Productivity and Economic Growth in Europe: A Comparative Industry Perspective," International Productivity Monitor, Centre for the Study of Living Standards, vol. 21, pages 3-23, Spring.
    17. Valentini, Enzo & Arlotti, Marco & Compagnucci, Fabiano & Gentili, Andrea & Muratore, Fabrizio & Gallegati, Mauro, 2017. "Technical change, sectoral dislocation and barriers to labor mobility: Factors behind the great recession," Journal of Economic Dynamics and Control, Elsevier, vol. 81(C), pages 187-215.
    18. Gang Liu, 2019. "Structural Change and Productivity in the Market Economy of Mainland Norway, 1997-2014," International Productivity Monitor, Centre for the Study of Living Standards, vol. 36, pages 79-109, Spring.
    19. Ilya B. Voskoboynikov, 2021. "Accounting for growth in the USSR and Russia, 1950–2012," Journal of Economic Surveys, Wiley Blackwell, vol. 35(3), pages 870-894, July.
    20. Gilbert Cette & Aurélien Devillard & Vincenzo Spiezia, 2022. "Growth Factors in Developed Countries: A 1960–2019 Growth Accounting Decomposition," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 64(2), pages 159-185, June.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:telpol:v:40:y:2016:i:5:p:398-411. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/30471/description#description .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.