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The Contribution of ICTs to Productivity Growth in Canada and the United States in the 1990s

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  • Someshwar Rao
  • Jianmin Tang

Abstract

The slower productivity growth in Canada relative to that experienced in the United States in the second half of the 1990s has been a matter of great concern to Canadians, with a wide variety of explanations put forward to account for this development. A key issue is whether this slower productivity growth is broadly-based, which would imply a societal-level explanation, or narrowly-based, which would point to industry-specific factors. In this article in the issue, Someshwar Rao and Jianmin Tang of Industry Canada examine the contribution of the information and communications technology (ICT) sector to productivity growth in Canada and the United States in the 1990s. They find that the productivity growth gap in the 1990s at both the total economy and manufacturing level can be entirely accounted for by the greater size and faster growth of the ICT sector in the United States relative to that in Canada. They note that the Canada-U.S. productivity gap could widen in the medium term given the continued U.S. predominance in the crucial ICT sector.

Suggested Citation

  • Someshwar Rao & Jianmin Tang, 2001. "The Contribution of ICTs to Productivity Growth in Canada and the United States in the 1990s," International Productivity Monitor, Centre for the Study of Living Standards, vol. 3, pages 3-18, Fall.
    • Handle: RePEc:sls:ipmsls:v:3:y:2001:1
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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. Dale W. Jorgenson, 2001. "Information Technology and the U.S. Economy," Higher School of Economics Economic Journal Экономический журнал Высшей школы экономики, CyberLeninka;Федеральное государственное автономное образовательное учреждение высшего образования «Национальный исследовательский университет «Высшая школа экономики», vol. 5(1), pages 3-34.
    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.
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    Citations

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    Cited by:

    1. Michelle Alexopoulos & Jon Cohen, 2012. "The Effects of Computer Technologies on the Canadian Economy: Evidence from New Direct Measures," International Productivity Monitor, Centre for the Study of Living Standards, vol. 23, pages 17-32, Spring.
    2. Jianmin Tang & Weimin Wang, 2004. "Sources of aggregate labour productivity growth in Canada and the United States," Canadian Journal of Economics, Canadian Economics Association, vol. 37(2), pages 421-444, May.
    3. Centre for the Study of Living Standards, 2012. "The Impact of Information and Communication Technology on the Productivity of the Canadian Transportation System: A Macroeconomic Approach for the Air and Rail Sectors," CSLS Research Reports 2012-07, Centre for the Study of Living Standards.

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    More about this item

    Keywords

    Productivity; Growth; Productivity Growth; Industry; IT; ICT; Information Technology; Communication; 1990s; Canada; United States; Comparison; Manufacturing; Service; Service Sector; Productivity Gap; Income Gap; New Economy; Trends; Productivity Trends; R&D; Research and Development; Skill; Output;
    All these keywords.

    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • E22 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Investment; Capital; Intangible Capital; Capacity
    • O51 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - U.S.; Canada
    • O57 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • 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
    • O38 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Government Policy
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • L80 - Industrial Organization - - Industry Studies: Services - - - General
    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General

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