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The contribution of ICT to economic activity: a growth accounting exercise with Spanish firm-level data

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  • Ignacio Hernando

    (Banco de España)

  • Soledad Núñez

    (Banco de España)

Abstract

This paper applies a well-established growth accounting framework to measure the contribution of ICT inputs to output and labour productivity growth in Spain, using a sample of 1300 firms per year over 1991-2000. Firm-level data are helpful to overcome the availability lags and the mismeasurement of capital stocks associated with the use of aggregate data. We find that: 1) The use of ICT inputs has made a positive and significant contribution to output and productivity growth. 2) This contribution was higher in the second half of the 1990s. 3) At a sectoral level, there is a general rise in the share of ICT in total capital and a general reduction in ICT cost shares. (Copyright: Fundación SEPI)

Suggested Citation

  • Ignacio Hernando & Soledad Núñez, 2004. "The contribution of ICT to economic activity: a growth accounting exercise with Spanish firm-level data," Investigaciones Economicas, Fundación SEPI, vol. 28(2), pages 315-348, May.
    • Handle: RePEc:iec:inveco:v:28:y:2004:i:2:p:315-348
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    References listed on IDEAS

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    1. Ángel Estrada & David López-Salido, 2001. "Accounting for Spanish productivity growth using sectoral data: New Evidence," Working Papers 0110, Banco de España.
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    12. Ignacio Hernando & Soledad Núñez, 2004. "The contribution of ICT to economic activity: a growth accounting exercise with Spanish firm-level data," Investigaciones Economicas, Fundación SEPI, vol. 28(2), pages 315-348, May.
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    Cited by:

    1. Samoilenko, Sergey & Osei-Bryson, Kweku-Muata, 2008. "An exploration of the effects of the interaction between ICT and labor force on economic growth in transition economies," International Journal of Production Economics, Elsevier, vol. 115(2), pages 471-481, October.
    2. Ignacio Hernando & Soledad Núñez, 2004. "The contribution of ICT to economic activity: a growth accounting exercise with Spanish firm-level data," Investigaciones Economicas, Fundación SEPI, vol. 28(2), pages 315-348, May.
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    4. R.M. Mahboub, 2018. "The Impact of Information and Communication Technology Investments on the Performance of Lebanese Banks," European Research Studies Journal, European Research Studies Journal, vol. 0(4), pages 435-458.

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    More about this item

    Keywords

    Information and communication technologies; growth accounting; technological change;
    All these keywords.

    JEL classification:

    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • L63 - Industrial Organization - - Industry Studies: Manufacturing - - - Microelectronics; Computers; Communications Equipment

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