ICT, Output and Productivity Growth in the United Kingdom: A Sectoral Analysis

Giovanni Notaro ()

International Productivity Monitor, 2004, vol. 8, 37-46

Abstract: Much has been written, including in previous issues of the Monitor, on the importance of Information and Communication Technologies (ICTs) in productivity growth, but this research has focused primarily on North America. In the fourth article, Giovanni Notaro of London Economics investigates this issue for the United Kingdom using a bottom-up analysis, in which aggregate trends are derived from trends in the 11 sectors of the economy. Using a standard growth accounting framework, Notaro finds ICTs made a substantial contribution to output growth in the largest sectors of the UK economy in the 1990s, and that ICT capital is a primary driver of labour productivity growth in all UK sectors except mining and quarrying. He concludes that the weaker productivity performance of the United Kingdom relative to the United States can be attributed mainly to slower accumulation of capital, both ICTs and non-ICTs.

Keywords: Productivity Growth; Productivity; Information and Communication Technologies; Information Technology; Growth Accounting; United Kingdom; Sector; Industry; Europe (search for similar items in EconPapers)
JEL-codes: D24 L16 O30 O47 O52 (search for similar items in EconPapers)
Date: 2004
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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