ICT and productivity growth within value chains

Chuan Liu and Marianne Saam ()

No 828, Ruhr Economic Papers from RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen

Abstract: To what extent have economies become better off because of the diffusion of information and communication technologies (ICT)? We analyze this question based on a growth accounting approach at the level of final output. This approach traces productivity improvements not within sectors but within value chains. It allows judging in a better way to what extent more or better products have become available to final users, in particular consumers, as a result of the diffusion of ICT. A main result is that more than half of the productivity gains related to ICT capital deepening for manufactured goods are contributed by upstream industries. The major part of this contribution is domestic rather than foreign. Moreover, the high sectoral growth in total factor productivity (TFP) in the ICT sector contributes only moderately to TFP growth in non-ICT value chains via the use of intermediates.

Keywords: ICT; economic growth; productivity; value chains; growth accounting (search for similar items in EconPapers)
JEL-codes: E22 F62 O47 (search for similar items in EconPapers)
Date: 2019
New Economics Papers: this item is included in nep-eff, nep-gro, nep-ict, nep-knm, nep-mac and nep-tid
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Journal Article: ICT and Productivity Growth Within Value Chains (2022)
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:rwirep:828

DOI: 10.4419/86788961

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