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The Effect of Information Technology and Human Capital on Economic Growth

Author

Listed:
  • Ketteni Elena

    (University of Cyprus)

  • Mamuneas Theofanis

    (University of Cyprus)

  • Stengos Thanasis

    (University of Guelph, Canada and Rimini Centre for Economic Analysis, Italy)

Abstract

In this paper we compare the impact of hardware, software and communication equipments, widely referred to as information and communication technologies (ICT) on economic growth among the advanced industrialized countries. We use nonparametric techniques that allow us to directly estimate the elasticity of ICT and human capital for each country and time period. We also examine whether the nonlinear relationship between human capital and growth, found in the literature, still persists in the presence of ICT effects. The data covers the period from 1980-2004, for a range of OECD countries and the results indicate that there exist a nonlinear relationship between ICT and productivity along with a nonlinear relationship between human capital and productivity. Additionally, we observe that in high levels of ICT capital the output elasticities of human capital are larger and the more educated workers in a country the higher are the output elasticities of ICT.

Suggested Citation

  • Ketteni Elena & Mamuneas Theofanis & Stengos Thanasis, 2007. "The Effect of Information Technology and Human Capital on Economic Growth," Working Paper series 03_07, Rimini Centre for Economic Analysis.
    • Handle: RePEc:rim:rimwps:03_07
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