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Information Technology and Economic Growth: A Cross-Country Analysis

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  • Matti Pohjola

Abstract

This paper explores the impacts of information technology investment on economic growth in a cross-section of 39 countries in the period 1980-95 by applying an explicit model of economic growth, the augmented version of the neoclassical (Solow) growth model. The results based on the full sample of 39 countries indicate that physical capital is a key factor in economic growth in both developed and developing countries. Its influence is even bigger than what is implied by the income share of capital in national income accounts.

Suggested Citation

  • Matti Pohjola, 2000. "Information Technology and Economic Growth: A Cross-Country Analysis," WIDER Working Paper Series wp-2000-173, World Institute for Development Economic Research (UNU-WIDER).
    • Handle: RePEc:unu:wpaper:wp-2000-173
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    File URL: https://www.wider.unu.edu/sites/default/files/wp173.pdf
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    Keywords

    Capital; Economic development; Human capital; Information technology; Productivity;
    All these keywords.

    JEL classification:

    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
    • O41 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence

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