The Economic Impact of Cloud Computing on Business Creation, Employment and Output in Europe. An application of the Endogenous Market Structures Approach to a GPT innovation

Federico Etro ()

Review of Business and Economic Literature, 2009, vol. LIV, issue 2, 179-208

Abstract: Cloud computing is a new general purpose Internet-based technology through which information is stored in servers and provided as a service and on-demand to clients. Adopting the endogenous market structures approach to macroeconomics, we analyze the economic impact of the gradual introduction of cloud computing and we emphasize its role in fostering business creation and competition thanks to the reduction of the fixed costs of entry in ICT capital. Our calculations based on a DSGE model show a significative impact for the European Union with the creation of a few hundred thousands new SMEs and a significant contribution to growth. Governments could enhance these benefits by subsidizing the adoption of cloud computing solutions.

Keywords: Endogenous market structure; Cloud computing; Utility computing; General purpose technology; Firms’ Entry; Business Cycle (search for similar items in EconPapers)
JEL-codes: E32 L11 (search for similar items in EconPapers)
Date: 2009
References: Add references at CitEc
Citations: View citations in EconPapers (16)

Downloads: (external link)
https://feb.kuleuven.be/rebel/jaargangen/2001-2010 ... loud%20Computing.pdf

Related works:
Journal Article: The Economic Impact of Cloud Computing on Business Creation, Employment and Output in Europe. An application of the Endogenous Market Structures Approach to a GPT innovation (2009)
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:ete:revbec:20090204

Access Statistics for this article

More articles in Review of Business and Economic Literature from KU Leuven, Faculty of Economics and Business (FEB), Review of Business and Economic Literature Contact information at EDIRC.
Bibliographic data for series maintained by library EBIB ().