The sustained increase in productivity gains from the spread of ICTs may increase potential output growth in the medium to long term via capital deepening effects and total factor productivity (TFP) gains, and in the short to medium term via the lagged adjustment of wages to productivity gains. The orders of magnitude resulting from the assessment data presented indicate that the medium to long-term effect could be significant. However, there does not appear to be any empirical evidence to support the existence of the temporary short to medium-term effect.
Gilbert Cette, Jacques Mairesse and Yusuf Kocoglu
Classification JEL : O3, O4.
Keywords : Growth, potential output growth, ICT, investment, new economy.
Updated on: 06/12/2018 10:59