Information and Communication Technologies in a Multi-Sector Endogenous Growth Model
Evangelia Vourvachaki ()
CEP Discussion Papers from Centre for Economic Performance, LSE
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)
New Economics Papers: this item is included in nep-cse, nep-ict and nep-ino
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Working Paper: Information and Communication Technologies in a Multi-sector Endogenous Growth Model (2009)
Working Paper: Information and communication technologies in a multi-sector endogenous growth model (2006)
Working Paper: Information and Communication Technologies in a Multi-Sector Endogenous Growth Model (2005)
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Persistent link: https://EconPapers.repec.org/RePEc:cep:cepdps:dp0750
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