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ICT Stochastic Externalities and Growth: Missed Opportunities, Beyond Sustainability or What?

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  • Bernardo Maggi

    (Sapienza Universita' di Roma)

Abstract

In this paper we present an analysis of the OECD production process and consider the ICT as driver of growth. In doing so the production function approach adopted underlines the externalities exploited or not and, possibly, when the production process overpasses the countries capacities implied by the technical parameters. In line with the general purpose theory such externalities are attributed to ICT. Business services are relevant as a vehicle to better exploit the innovative capital embedded in the production process. We develop and implement a methodology for the evaluation of the different effects on growth related to ICT. Our main conclusion is that even if a competitive solution is viable there are possible, though small, margins for a sustained growth in the long run for the OECD countries considered. We also point out some conclusions on the capital and labour shares showing that the latter is too small both in the long and short run.

Suggested Citation

  • Bernardo Maggi, 2014. "ICT Stochastic Externalities and Growth: Missed Opportunities, Beyond Sustainability or What?," DSS Empirical Economics and Econometrics Working Papers Series 2014/4, Centre for Empirical Economics and Econometrics, Department of Statistics, "Sapienza" University of Rome.
    • Handle: RePEc:sas:wpaper:20144
    as

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    File URL: http://www.dss.uniroma1.it/RePec/sas/wpaper/20144_m.pdf
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    References listed on IDEAS

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    8. de La Grandville Olivier, 2012. "How Much Should a Nation Save? A New Answer," Studies in Nonlinear Dynamics & Econometrics, De Gruyter, vol. 16(2), pages 1-36, April.
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    Cited by:

    1. Angelo Castaldo & Alessandro Fiorini & Bernardo Maggi, 2018. "Measuring (in a time of crisis) the impact of broadband connections on economic growth: an OECD panel analysis," Applied Economics, Taylor & Francis Journals, vol. 50(8), pages 838-854, February.

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    More about this item

    Keywords

    Growth and externalities; ICT; Technology; Business Services; Panel Data Econometrics;
    All these keywords.

    JEL classification:

    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • 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
    • D62 - Microeconomics - - Welfare Economics - - - Externalities

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