Information Technology and Productivity Growth in the 2000s

Kevin Stiroh and Matthew Botsch

German Economic Review, 2007, vol. 8, issue 2, 255-280

Abstract: Abstract. US productivity growth experienced continued productivity growth after 2000 even as investment, particularly in information technology (IT), slowed. This paper uses industry‐level data to examine the link between average labor productivity (ALP) growth and IT in the post‐2000 period. We use difference‐in‐difference and cross‐sectional regressions to show that the link between ALP growth and IT‐intensity is weaker after 2000 than before. These results are robust to alternative measures of IT‐intensity such as the IT share of capital services, the level of IT capital depth, and the share of IT capital services in total output. We conclude that the post‐2000 productivity gains in the United States do not appear to have been driven directly by IT.

Date: 2007
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