nep-ict New Economics Papers
on Information and Communication Technologies
Issue of 2009‒11‒07
two papers chosen by
Walter Frisch
University Vienna

  1. E-Business Implications for Productivity and Competitiveness By Pece Mitrevski; Olivera Kostoska; Marjan Angeleski
  2. Information and Communication Technologies in a Multi-sector Endogenous Growth Model By Evangelia Vourvachaki

  1. By: Pece Mitrevski (Faculty of Technical Sciences, Bitola, Macedonia); Olivera Kostoska; Marjan Angeleski (Faculty of Economics, Prilep, Macedonia)
    Abstract: Information and Communication Technology (ICT) affects to a great extent the output and productivity growth. Evidence suggests that investment growth in ICT has rapidly accelerated the TFP (total factor productivity) growth within the European Union. Such progress is particularly essential for the sectors which themselves produce new technology, but it is dispersing to other sectors, as well. Nevertheless, decrease in ICT investment does not necessarily decline the ICT contribution to output and productivity growth. These variations come out from the problems related to the particular phenomenon proper assessment, but predominantly from the companies’ special requirements, as well as the necessary adjustments of labour employed. Hence, this paper aims at estimating the huge distinction in terms of ICT and TFB contributions to labour productivity growth among some of the European member states, as well as the factors which might stand behind the particular findings.
    Keywords: e-business, ICT, productivity, competitiveness
    JEL: C1 D8 R11
    Date: 2009–05
  2. By: Evangelia Vourvachaki
    Abstract: This paper investigates the growth impact of Information and Communication Technologies (ICT) in an economy consisting of three sectors, ICT-producing, ICT-using and non-ICTusing. The ICT progress causes falling prices of the consumption and intermediates produced by the ICT-using sector, providing incentives for investment in the sectors using them. Therefore, the non-ICT-using sector benefits indirectly from ICT, while households' utility increases. The magnitude of the growth transmission mechanism relies on the ICT-using sector production shares. Aggregate economy is on a constant growth path, where growth rates differ across sectors. The model predictions are broadly consistent with the U.S. growth experience.
    Keywords: Multi-sector Economy, Endogenous Growth, Constant Growth Path, Information and Communication Technologies.
    JEL: O40 O41
    Date: 2009–08

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