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On the information and communication technologies - productivity nexus: a long-lasting adjustment period

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  • Benjamin David

Abstract

This paper investigates the relationship between Information and Communication Technologies (ICT) and productivity within 240 industries from 8 OECD countries. Specifically, it aims at providing explanations for the coexistence of this strong technological evolution together with the absence of break in the productivity trend during the last decades. We calculate the total factor productivity changes and their components (technical progress and pure efficiency changes) over the period 1973-2005 using the Malmquist productivity index and we then relate these measures with data on ICT diffusion using regression trees. Our results suggest that ICT diffusion is accompanied by opposite movements that conceal the potential of these technologies. Indeed, we find evidence of a clearly identifiable positive relationship between computerization and technical progress, while ICT diffusion negatively affects pure efficiency changes. Our findings support the existence of an adjustment period and are consistent with the fact that the economies under consideration are still in a phase of adaptation.

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  • Benjamin David, 2014. "On the information and communication technologies - productivity nexus: a long-lasting adjustment period," EconomiX Working Papers 2014-60, University of Paris Nanterre, EconomiX.
    • Handle: RePEc:drm:wpaper:2014-60
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    More about this item

    Keywords

    Information and Communication Technologies; General Purpose Technologies; Malmquist productivity index; Data envelopment analysis; regression tree.;
    All these keywords.

    JEL classification:

    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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