How does information technology improve aggregate productivity? A new channel of productivity dispersion and reallocation
Hyunbae Chun,
Jung-Wook Kim and
Jason Lee
Research Policy, 2015, vol. 44, issue 5, 999-1016
Abstract:
Using U.S. firm-level data from 1971 to 2000, this paper quantifies the importance of production input reallocation in explaining the information technology (IT) driven productivity growth. We find that cross-industry variation in input reallocation explains more than 30% of differences in the 5-year productivity growth rates of industries utilizing similar levels of IT. Our findings illustrate a new channel through which IT affects the aggregate productive growth and are consistent with recent papers that emphasize the destructive nature of technology innovation and the importance of firm-level reallocation in explaining aggregate productivity growth. Our paper implies that policy makers should focus not only on implementing IT but also on instituting policies aimed at improving reallocation efficiency to maximize the effect of IT on the productivity growth.
Keywords: Information technology; Productivity growth; Reallocation; Technology diffusion (search for similar items in EconPapers)
Date: 2015
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (27)
Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S004873331400198X
Full text for ScienceDirect subscribers only
Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
HTML/Text
Persistent link: https://EconPapers.repec.org/RePEc:eee:respol:v:44:y:2015:i:5:p:999-1016
DOI: 10.1016/j.respol.2014.11.007
Access Statistics for this article
Research Policy is currently edited by M. Bell, B. Martin, W.E. Steinmueller, A. Arora, M. Callon, M. Kenney, S. Kuhlmann, Keun Lee and F. Murray
More articles in Research Policy from Elsevier
Bibliographic data for series maintained by Catherine Liu ().