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The Role of ICT in the Spanish Productivity Slowdown

Author

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  • Quesada Ibáñez Javier

    (UNIVERSITY OF VALENCIA INSTITUTO VALENCIANO DE INVESTIGACIONES ECONÓMICAS (Ivie))

  • Mas Ivars Matilde

    (UNIVERSITY OF VALENCIA INSTITUTO VALENCIANO DE INVESTIGACIONES ECONÓMICAS (Ivie))

Abstract

The paper presents a quantification of Spanish productivity performance over the last two decades- with a special mention to the role played by Information and Communication Technologies (ICT). It makes use of the capital service data - recently released by the BBVA Foundation - exploiting its sectoral breakdown. It concentrates on twenty six industries belonging to the business (non-primary) sectors of the economy. These industries are further grouped in two clusters according to their intensity in the use of ICT capital. Our results show that the ICT cluster as a whole has presented the most dynamic behaviour. However, some important differences can be detected, both among the industries included in the cluster and also over the period under consideration. A growth accounting exercise allows us to conclude that the Spanish economy shows notable inefficiencies, as identified by negative Total Factor Productivity (TFP) contributions to productivity growth during the period 1985-2004. However, the ICT intensive cluster has reversed its behaviour since 2000, driving a modest resurgence of labour productivity in Spain over the 2000-2004 period.

Suggested Citation

  • Quesada Ibáñez Javier & Mas Ivars Matilde, 2006. "The Role of ICT in the Spanish Productivity Slowdown," Working Papers 201035, Fundacion BBVA / BBVA Foundation.
    • Handle: RePEc:fbb:wpaper:201035
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    References listed on IDEAS

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    Cited by:

    1. Francisco-Javier Escribá-Pérez & María-José Murgui-García & José-Ramón Ruiz-Tamarit, 2022. "The devil is in the details: Capital stock estimation and aggregate productivity growth—An application to the Spanish economy," Portuguese Economic Journal, Springer;Instituto Superior de Economia e Gestao, vol. 21(1), pages 31-50, January.
    2. Martínez, Diego & Rodríguez, Jesús & Torres, José L., 2008. "The productivity paradox and the new economy: The Spanish case," Journal of Macroeconomics, Elsevier, vol. 30(4), pages 1569-1586, December.
    3. Montes-Solla, Paulino & Faiña Medín, J. Andres & Lopez-Rodriguez, Jesus, 2015. "Regional development in Spain 1989-2010: capital widening and productivity stagnation," MPRA Paper 72921, University Library of Munich, Germany.
    4. Manuel A. Hidalgo Pérez & Jesús Rodríguez López & José Mª O.Kean Alonso, 2008. "Labor demand and information technologies: evidence for Spain, 1980-2005," Economic Working Papers at Centro de Estudios Andaluces E2008/13, Centro de Estudios Andaluces.
    5. Escudero, Verónica & López Mourelo, Elva, 2012. "Improving Competitiveness and Fostering Productivity in Spain/Mejorar la competitividad y fomentar la productividad en España," Estudios de Economia Aplicada, Estudios de Economia Aplicada, vol. 30, pages 105-136, Abril.
    6. F. J. Escribá-Pérez & M. J. Murgui-García & J. R. Ruiz-Tamarit, 2017. "Economic and Statistical Measurement of Physical Capital with an Application to the Spanish Economy," LIDAM Discussion Papers IRES 2017020, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
    7. Mas, Matilde & Quesada, Javier, 2005. "Déficit tecnológico y crecimiento económico en España [Technological deficit and economic growth in Spain]," MPRA Paper 15836, University Library of Munich, Germany, revised 2005.
    8. Mas, Matilde & Quesada, Javier & Robledo, Juan Carlos, 2007. "Las nuevas tecnologías y la competitividad industrial [New technologies and industrial competiveness]," MPRA Paper 15826, University Library of Munich, Germany, revised 2007.
    9. Diego Martínez López & Jesús Rodríguez López, 2006. "The role of new technologies in the economic growth of Andalucia," Economic Working Papers at Centro de Estudios Andaluces E2006/19, Centro de Estudios Andaluces.
    10. Hidalgo Pérez, Manuel A. & O׳Kean Alonso, José María & Rodríguez López, Jesús, 2016. "Labor demand and ICT adoption in Spain," Telecommunications Policy, Elsevier, vol. 40(5), pages 450-470.
    11. Jesús Rodríguez López & Diego Martínez López, 2006. "New technologies and economic growth: a regional approach. The case of Andalucia," Working Papers 06.27, Universidad Pablo de Olavide, Department of Economics.
    12. Diego Martínez & Jesús Rodríguez, 2009. "New technologies and regional growth: the case of Andalucía," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 43(4), pages 963-987, December.
    13. Alicia Gómez‐Tello & María‐José Murgui‐García & María‐Teresa Sanchis‐Llopis, 2022. "Au revoir Paris! Spanish regions closer to the EU average and further away from the leaders," Regional Science Policy & Practice, Wiley Blackwell, vol. 14(5), pages 1133-1157, October.

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    More about this item

    Keywords

    Growth accounting; productivity; information and communication technologies;
    All these keywords.

    JEL classification:

    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • O52 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Europe

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