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What's New About the New Economy? IT, Economic Growth and Productivity

Author

Listed:
  • Barry P. Bosworth
  • Jack E. Triplett

Abstract

Has the economy fundamentally changed in the 1990s because of the introduction of information technology or is the impact of IT not so much "new" as larger than before? In this article, Barry Bosworth and Jack Triplett of the Brooking Institution examine this issue with a detailed analysis of productivity developments in the U.S. economy in the 1990s. Their main message is that the although IT is the driving force behind the recent acceleration of labour productivity growth, its impact can indeed still be understood within the standard growth accounting framework. Like Stiroh, they argue that there is little reason to believe productivity gains arising from IT will end in the near future.

Suggested Citation

  • Barry P. Bosworth & Jack E. Triplett, 2001. "What's New About the New Economy? IT, Economic Growth and Productivity," International Productivity Monitor, Centre for the Study of Living Standards, vol. 2, pages 19-30, Spring.
    • Handle: RePEc:sls:ipmsls:v:2:y:2001:3
    as

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    File URL: http://www.csls.ca/ipm/2/triplett-e.pdf
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    File URL: http://www.csls.ca/ipm/2/triplett-f.pdf
    File Function: version en francais, pp:19-32
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    References listed on IDEAS

    as
    1. Robert J. Gordon, 2000. "Does the "New Economy" Measure Up to the Great Inventions of the Past?," Journal of Economic Perspectives, American Economic Association, vol. 14(4), pages 49-74, Fall.
    2. Stefano Scarpetta & Andrea Bassanini & Dirk Pilat & Paul Schreyer, 2000. "Economic Growth in the OECD Area: Recent Trends at the Aggregate and Sectoral Level," OECD Economics Department Working Papers 248, OECD Publishing.
    3. Dale W. Jorgenson & Kevin J. Stiroh, 2000. "Raising the Speed Limit: U.S. Economic Growth in the Information Age," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 31(1), pages 125-236.
    4. Francesco Daveri, "undated". "Is Growth an Information Technology Story in Europe Too?," EPRU Working Paper Series 00-12, Economic Policy Research Unit (EPRU), University of Copenhagen. Department of Economics.
    5. Erik Brynjolfsson & Lorin M. Hitt, 2000. "Beyond Computation: Information Technology, Organizational Transformation and Business Performance," Journal of Economic Perspectives, American Economic Association, vol. 14(4), pages 23-48, Fall.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Jonathan Temple, 2002. "The Assessment: The New Economy," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 18(3), pages 241-264.
    2. Gilbert Cette & Jacques Mairesse & Yusuf Kocoglu, 2002. "The Diffusion of ICTs and Growth of the French Economy over the Long-term, 1980-2000," International Productivity Monitor, Centre for the Study of Living Standards, vol. 4, pages 27-38, Spring.
    3. Andrew Sharpe, 2007. "Lessons for Canada from International Productivity Experience," International Productivity Monitor, Centre for the Study of Living Standards, vol. 14, pages 20-37, Spring.
    4. Schettkat, Ronald & Yocarini, Lara, 2006. "The shift to services employment: A review of the literature," Structural Change and Economic Dynamics, Elsevier, vol. 17(2), pages 127-147, June.

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    More about this item

    Keywords

    ICT; IT; Information Technology; Innovation; United States; Productivity; Acceleration; Growth Accounting; New Economy; Sources of Growth; Comparisons; OECD; Multi-Factor Productivity; Labor Productivity;
    All these keywords.

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence

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