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The Role of ICT in the Spanish Productivity Slowdown

Javier Quesada () and Matilde Mas ()

No 201035, Working Papers from Fundacion BBVA / BBVA Foundation

Abstract: The paper presents a quantification of Spanish productivity performance over the last two decades- with a special mention to the role played by Information and Communication Technologies (ICT). It makes use of the capital service data - recently released by the BBVA Foundation - exploiting its sectoral breakdown. It concentrates on twenty six industries belonging to the business (non-primary) sectors of the economy. These industries are further grouped in two clusters according to their intensity in the use of ICT capital. Our results show that the ICT cluster as a whole has presented the most dynamic behaviour. However, some important differences can be detected, both among the industries included in the cluster and also over the period under consideration. A growth accounting exercise allows us to conclude that the Spanish economy shows notable inefficiencies, as identified by negative Total Factor Productivity (TFP) contributions to productivity growth during the period 1985-2004. However, the ICT intensive cluster has reversed its behaviour since 2000, driving a modest resurgence of labour productivity in Spain over the 2000-2004 period.

Keywords: Growth accounting; productivity; information and communication technologies (search for similar items in EconPapers)
Pages: 36
Date: 2006-03
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