What Explains the Canada-US ICT Investment Intensity Gap?

Centre for the Study of Living Standards

No 2005-06, CSLS Research Reports from Centre for the Study of Living Standards

Abstract: This report investigates the reasons behind the Canada-US gap in ICT investment intensity. It finds that Canada's ICT investment per worker in the business sector stood at 45.1 per cent of the US level in 2004, down from 60.4 per cent in 1987, and that Canada's lower ICT share of GDP reflects a lower share of ICT in total business investment (18.5% vs 30.5% in the US). The report examines a range of explanations for the gap including statistical and methodological differences, industrial structure, firm size, relative costs and prices, managerial attitudes, ICT training, taxes, and competitive intensity.

Keywords: ICT investment; Canada-US gap; productivity; information technology; capital intensity; business sector; OECD (search for similar items in EconPapers)
Date: 2005-12
New Economics Papers: this item is included in nep-fin, nep-ict, nep-ino and nep-mac
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