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Evaluating the effects of investment in information and communication technology

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  • Rebeca Jiménez-Rodréguez

Abstract

Most of the studies on the consequences of information and communication technology (ICT) have been focused on US aggregate data. In contrast to these studies, this paper empirically assesses the industrial effect of ICT investment on three key variables -- real output, employment, and labour productivity -- in some European Union-15 (EU-15) countries and the USA using panel-vector autoregression models. An increase in ICT investment is positive for the economies of these countries, giving rise to larger growth in real output, employment, and labour productivity at the industrial level. The pattern of responses to changes in ICT investment is quantitatively diverse across most of the EU-15 countries studied and in the two types of industries considered (i.e. ICT-intensive and less intensive industries). Moreover, the positive impact on labour productivity in ICT-intensive industries is larger after the mid-1990s, with the USA being the most positively affected country.

Suggested Citation

  • Rebeca Jiménez-Rodréguez, 2012. "Evaluating the effects of investment in information and communication technology," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 21(2), pages 203-221, February.
    • Handle: RePEc:taf:ecinnt:v:21:y:2012:i:2:p:203-221
    DOI: 10.1080/10438599.2011.561998
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    1. repec:dgr:rugggd:200363 is not listed on IDEAS
    2. Timmer, Marcel P. & Ypma, Gerard & Ark, Bart van der, 2003. "IT in the European Union: driving productivity divergence?," GGDC Research Memorandum 200363, Groningen Growth and Development Centre, University of Groningen.
    3. Nicola MATTEUCCI & Alessandro STERLACCHINI, 2003. "ICT and Employment Growth in Italian Industries," Working Papers 193, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
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    Cited by:

    1. Khanna, Rupika & Sharma, Chandan, 2024. "Beyond information technology and productivity paradox: Analysing the channels of impact at the firm-level," Technological Forecasting and Social Change, Elsevier, vol. 203(C).
    2. A. Arrighetti & F. Landini & A. Lasagni, 2015. "Firms’economic crisis and firm exit: do intangibles matters?," Economics Department Working Papers 2015-EP04, Department of Economics, Parma University (Italy).
    3. Díaz-Chao, Ángel & Sainz-González, Jorge & Torrent-Sellens, Joan, 2015. "ICT, innovation, and firm productivity: New evidence from small local firms," Journal of Business Research, Elsevier, vol. 68(7), pages 1439-1444.
    4. Khanna, Rupika & Sharma, Chandan, 2021. "Do technological investments promote manufacturing productivity? A firm-level analysis for India," Economic Modelling, Elsevier, vol. 105(C).

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