Information and Communication Technologies in a Multi-sector Endogenous Growth Model
Evangelia Vourvachaki ()
CERGE-EI Working Papers from The Center for Economic Research and Graduate Education - Economics Institute, Prague
This paper investigates the growth impact of Information and Communication Technologies (ICT) in an economy consisting of three sectors, ICT-producing, ICT-using and non-ICTusing. The ICT progress causes falling prices of the consumption and intermediates produced by the ICT-using sector, providing incentives for investment in the sectors using them. Therefore, the non-ICT-using sector benefits indirectly from ICT, while households' utility increases. The magnitude of the growth transmission mechanism relies on the ICT-using sector production shares. Aggregate economy is on a constant growth path, where growth rates differ across sectors. The model predictions are broadly consistent with the U.S. growth experience.
Keywords: Multi-sector Economy; Endogenous Growth; Constant 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-dge, nep-fdg and nep-ict
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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 (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:cer:papers:wp386
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