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The Contribution of ICT Investment to Economic Growth and Labor Productivity in Poland 1995-2000

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  • Marcin Piatkowski

    (TIGER - Transformation Integration and Globalization Economic Research)

Abstract

There is large evidence on a positive impact of information and communication technologies (ICT) on economic growth and productivity in a number of developed countries in the 1990’s. There are however no studies, which would estimate the contribution of ICT to growth and productivity in post-communist, transition economies. Data availability, consistency, and trustworthiness have been so far the main obstacles. This paper makes a first attempt, based on an extended growth accounting framework, at estimating the contribution of investment in ICT to output growth and labor productivity in Poland, the largest post-communist economy in Central and Eastern Europe and a prospective member of the EU (2004). The paper discusses the challenges of using available data and its impact on the choice of specific methodologies. The paper shows that ICT investment contributed on average 0.47 of a percentage point or 8.9% of GDP growth and 12.7% or 0.65 of a percentage point contribution to labor productivity between 1995-2000. This relatively large impact of ICT capital is due to an extraordinary acceleration in ICT investments between 1993-2001 induced by – one the one hand – rapidly falling prices of ICT products and services and – on the other hand – large demand for ICT fueled by high economic growth in the 1990’s and substantial pent-up demand due to infrastructural underinvestment in ICT.

Suggested Citation

  • Marcin Piatkowski, 2003. "The Contribution of ICT Investment to Economic Growth and Labor Productivity in Poland 1995-2000," Development and Comp Systems 0308002, University Library of Munich, Germany.
    • Handle: RePEc:wpa:wuwpdc:0308002
    Note: Type of Document - ; prepared on IBM PC - PC-TEX; to print on HP/PostScript/Franciscan monk; pages: 23; figures: included
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    References listed on IDEAS

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    Cited by:

    1. Bart van Ark & Marcin Piatkowski, 2004. "Productivity, innovation and ICT in Old and New Europe," International Economics and Economic Policy, Springer, vol. 1(2), pages 215-246, January.
    2. Kais Saidi & Chebli Mongi, 2018. "The Effect of Education, R&D and ICT on Economic Growth in High Income Countries," Economics Bulletin, AccessEcon, vol. 38(2), pages 810-825.
    3. Burak Karagöl & Erkan Erdil, 2012. "Macroeconomic Effects of Information and Communication Technologies in Turkey and Other OECD Member Countries," STPS Working Papers 1205, STPS - Science and Technology Policy Studies Center, Middle East Technical University, revised May 2012.
    4. Ljiljana Lovric, 2012. "Information-communication technology impact on labor productivity growth of EU developing countries," Zbornik radova Ekonomskog fakulteta u Rijeci/Proceedings of Rijeka Faculty of Economics, University of Rijeka, Faculty of Economics and Business, vol. 30(2), pages 223-245.
    5. Jiaoning Zhang & Xiaoyu Ma & Jiamin Liu, 2022. "How Can the Digital Economy and Human Capital Improve City Sustainability," Sustainability, MDPI, vol. 14(23), pages 1-18, November.
    6. Abdelhamid Mahboub & Doaa M. Salman, 2008. "ICT, Market Contestability and Economic Performance: Lessons from ERF Countries," Working Papers 424, Economic Research Forum, revised 06 Jan 2008.
    7. Diana Mihaela Apostol & Cristina Balaceanu, 2011. "Growth and Technology: The New Economy in the 2000's CEE Countries and Romania," International Journal of Academic Research in Accounting, Finance and Management Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Accounting, Finance and Management Sciences, vol. 1(2), pages 46-55, December.
    8. Liu, Ting-Kun & Chen, Jong-Rong & Huang, Cliff J. & Yang, Chih-Hai, 2014. "Revisiting the productivity paradox: A semiparametric smooth coefficient approach based on evidence from Taiwan," Technological Forecasting and Social Change, Elsevier, vol. 81(C), pages 300-308.
    9. Yongfei Li & Sang-Gun Lee & Myungjai Kong, 2019. "The industrial impact and competitive advantage of China’s ICT industry," Service Business, Springer;Pan-Pacific Business Association, vol. 13(1), pages 101-127, March.
    10. Marcin Piatkowski, 2004. "Does ICT Investment Matter for Growth and Labor Productivity in Transition Economies?," Development and Comp Systems 0402008, University Library of Munich, Germany.

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    More about this item

    Keywords

    economic growth; growth accounting; information technology; post-communist countries;
    All these keywords.

    JEL classification:

    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights
    • O4 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity
    • O5 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies

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