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The Productivity Paradox and the New Economy: The Spanish Case

Author

Listed:
  • Jesús Rodríguez López

    (Department of Economics, Universidad Pablo de Olavide)

  • Diego Martínez López

    (Department of Economics, Universidad Pablo de Olavide)

  • José Luis Torres Chacón

    (Departamento de Teoría e Historia Económica, Universidad de Málaga)

Abstract

This paper studies the impact of the information and communication technologies (ICT) on economic growth in Spain using a dynamic general equilibrium approach. Contrary to previous works, we use a production function with six different capital inputs, three of them corresponding to ICT assets. Calibration of the model suggests that the contribution of ICT to Spanish productivity growth is very relevant, whereas the contribution of non-ICT capital has been even negative. Additionally, over the sample period 1995-2002, we find a negative TFP and productivity growth. These results together aim at the hypothesis that the Spanish economy could be placed within the productivity paradox.

Suggested Citation

  • Jesús Rodríguez López & Diego Martínez López & José Luis Torres Chacón, 2007. "The Productivity Paradox and the New Economy: The Spanish Case," Working Papers 07.01, Universidad Pablo de Olavide, Department of Economics.
    • Handle: RePEc:pab:wpaper:07.01
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    More about this item

    Keywords

    New economy; information and communication technologies; technological change; productivity paradox.;
    All these keywords.

    JEL classification:

    • E22 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Investment; Capital; Intangible Capital; Capacity
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General

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