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Lessons for Canada from the U.S. Growth Resurgence

Author

Listed:
  • Dale W. Jorgenson
  • Mun S. Ho
  • Kevin J. Stiroh

Abstract

The economic development in the 1990s with the most important long-term consequences was the acceleration of productivity growth in the United States after 1995. In this article, Dale W. Jorgenson of Harvard University, Mun S. Ho from Resources for the Future, and Kevin J. Stiroh of the Federal Reserve Bank of New York provide a detailed account of this growth resurgence in the United States, reflecting both an productivity acceleration and greater hours worked and project U.S. output growth, and comment on lessons for Canada. They conclude that the U.S. productivity revival is likely to remain intact for the intermediate future. They point out that information technology investment reflects the overall momentum of the economy and there is no implication from the U.S. experience that Canadian firms have invested too little in this area.

Suggested Citation

  • Dale W. Jorgenson & Mun S. Ho & Kevin J. Stiroh, 2003. "Lessons for Canada from the U.S. Growth Resurgence," International Productivity Monitor, Centre for the Study of Living Standards, vol. 6, pages 3-18, Spring.
    • Handle: RePEc:sls:ipmsls:v:6:y:2003:1
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    References listed on IDEAS

    as
    1. 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.
    2. Dale W. Jorgenson & Mun S. Ho & Kevin J. Stiroh, 2005. "Growth of US Industries and Investments in Information Technology and Higher Education," NBER Chapters, in: Measuring Capital in the New Economy, pages 403-478, National Bureau of Economic Research, Inc.
    3. Ana M. Aizcorbe, 2002. "Why are semiconductor prices falling so fast? Industry estimates and implications for productivity measurement," Finance and Economics Discussion Series 2002-20, Board of Governors of the Federal Reserve System (U.S.).
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Peter J. Nicholson, 2003. "The Growth Story: Canada's Long-run Economic Performance and Prospects," International Productivity Monitor, Centre for the Study of Living Standards, vol. 7, pages 3-23, Fall.
    2. Ilmakunnas, Pekka & Miyakoshi, Tatsuyoshi, 2013. "What are the drivers of TFP in the Aging Economy? Aging labor and ICT capital," Journal of Comparative Economics, Elsevier, vol. 41(1), pages 201-211.
    3. Francesco Venturini, 2009. "The long-run impact of ICT," Empirical Economics, Springer, vol. 37(3), pages 497-515, December.
    4. Ellen R. McGrattan & Edward C. Prescott, 2005. "Productivity and the post-1990 U.S. economy," Review, Federal Reserve Bank of St. Louis, vol. 87(Jul), pages 537-550.
    5. Venturini Francesco, 2007. "ICT and Productivity Resurgence: A Growth Model for the Information Age," The B.E. Journal of Macroeconomics, De Gruyter, vol. 7(1), pages 1-26, August.
    6. Vu, Khuong M., 2013. "Information and Communication Technology (ICT) and Singapore’s economic growth," Information Economics and Policy, Elsevier, vol. 25(4), pages 284-300.
    7. Stern, David I., 2010. "Energy quality," Ecological Economics, Elsevier, vol. 69(7), pages 1471-1478, May.
    8. Jalava, Jukka & Kavonius, Ilja Kristian, 2008. "The effect of durable goods and ICT on euro area productivity growth?," Working Paper Series 940, European Central Bank.
    9. Cho, Youngsang & Lee, Jongsu & Kim, Tai-Yoo, 2007. "The impact of ICT investment and energy price on industrial electricity demand: Dynamic growth model approach," Energy Policy, Elsevier, vol. 35(9), pages 4730-4738, September.
    10. Benoît Robidoux & Bing-Sun Wong, 2003. "Has Trend Productivity Growth Increased in Canada?," International Productivity Monitor, Centre for the Study of Living Standards, vol. 6, pages 47-55, Spring.
    11. Antonopoulos, Christos & Sakellaris, Plutarchos, 2009. "The contribution of Information and Communication Technology investments to Greek economic growth: An analytical growth accounting framework," Information Economics and Policy, Elsevier, vol. 21(3), pages 171-191, August.

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    More about this item

    Keywords

    Productivity; Canada; Growth; ICT; Information; Communication; Technology; Resurgence; Post-1995; Acceleration; Projection;
    All these keywords.

    JEL classification:

    • O51 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - U.S.; Canada
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General
    • L86 - Industrial Organization - - Industry Studies: Services - - - Information and Internet Services; Computer Software

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