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Critical Mass, Network Effect and ICT Productivity - A Dynamic CGE Modelling Approach

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  • Szewczyk, Wojtek

Abstract

This paper models and analyses the impact of ICT technology on productivity growth. Three characteristics of ICT which have the capacity to impact upon ICT productivity are considered: (i) general purpose technology, (ii) network technology, and (iii) spillovers of ICT knowledge stock. The paper models national productivity as a function of economy-wide ICT productivity and the sectoral allocation of ICT resources. The model is hosted within a recursive dynamic CGE environment. The specification is applied to an ICT trade liberalisation experiment, which forecasts the possible impact of ICT technology on productivity growth for 2009-2015 if trade liberalisation in ICT products were to occur between APEC economies.

Suggested Citation

  • Szewczyk, Wojtek, 2008. "Critical Mass, Network Effect and ICT Productivity - A Dynamic CGE Modelling Approach," Conference papers 331765, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    • Handle: RePEc:ags:pugtwp:331765
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    File URL: https://ageconsearch.umn.edu/record/331765/files/3958.pdf
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