Computers and Economic Growth in Finland

Petri Niininen

No 295473, WIDER Working Papers from United Nations University, World Institute for Development Economic Research (UNU-WIDER)

Abstract: The effect of computer technology on Finnish economic growth in 1983-96 is examined to shed light into the famous productivity paradox. Using the neoclassical growth accounting framework, the contribution of computer hardware, software and labor to gross and net output growth is assessed at aggregate level. The results suggest that a considerable amount of real growth can be attributed to computers. Almost eight per cent of the net growth can be attributed to information technology. This is about two thirds of the contribution of other fixed capital stock. However, the role of multifactor productivity still dominated in the growth accounting. In addition to basic results, the assumptions of growth accounting are relaxed to extend the model.

Keywords: International; Development (search for similar items in EconPapers)
Pages: 38
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Persistent link: https://EconPapers.repec.org/RePEc:ags:widerw:295473

DOI: 10.22004/ag.econ.295473

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