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Economic Growth and Information Technology: A Note

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  • Selim, Tarek

Abstract

The usage of information technology (IT) towards sustainable economic growth is found to yield three main effects: (1) an efficiency effect, (2) a scale effect, and (3) a capital utilization effect. The first two effects are multiplicative whereas the third effect is additive on aggregate output productivity. In essence, this paper suggests that IT is more productive only if the economy is capable of replacing its sustainable capital resources at a rate exceeding that of consumption sacrifice.

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  • Selim, Tarek, 2005. "Economic Growth and Information Technology: A Note," MPRA Paper 101416, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:101416
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    information technology; growth theory; neoclassical;
    All these keywords.

    JEL classification:

    • E1 - Macroeconomics and Monetary Economics - - General Aggregative Models
    • E13 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - Neoclassical
    • O4 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity

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