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Information and Communication Technologies in a Multi-Sector Endogenous Growth Model

Evangelia Vourvachaki ()

CEP Discussion Papers from Centre for Economic Performance, LSE

Abstract: This paper investigates the impact of Information and Communication Technologies (ICT) on growth in an economy, consisting of three sectors, ICT-producing, ICT-using and non-ICT-using. The benefits from ICT come from the falling prices of the ICT-using sector's good, which is used for the production of intermediate goods. Their falling prices provide incentives for investment for sectors using them, so the non-ICT using sector experiences sustained growth driven by capital accumulation. Rates of growth across the three sectors differ, but the aggregate economy is on a balanced growth path with constant labour shares across sectors. US evidence confirms the model's predictions.

Keywords: multi-sector economy; endogenous growth; balanced growth path; Information and Communication Technologies (search for similar items in EconPapers)
JEL-codes: O40 O41 (search for similar items in EconPapers)
Date: 2006-08
New Economics Papers: this item is included in nep-cse, nep-ict and nep-ino
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Citations: View citations in EconPapers (11) Track citations by RSS feed

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http://cep.lse.ac.uk/pubs/download/dp0750.pdf (application/pdf)

Related works:
Working Paper: Information and Communication Technologies in a Multi-sector Endogenous Growth Model (2009) Downloads
Working Paper: Information and communication technologies in a multi-sector endogenous growth model (2006) Downloads
Working Paper: Information and Communication Technologies in a Multi-Sector Endogenous Growth Model (2005) Downloads
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