ICT and Europe's productivity performance industry-level growth account comparisons with the United States

Robert Inklaar, Mary O' Mahony and Marcel Timmer

No 200368, GGDC Research Memorandum from Groningen Growth and Development Centre, University of Groningen

Abstract: In this paper we present a new industry-level database to analyse sources of growth in four major European countries: France, Germany, Netherlands and United Kingdom (EU-4), in comparison with the United States for the period 1979-2000. Aggregate labour productivity growth is decomposed into industry-level contributions of labour quality, ICT and non-ICT capital deepening and TFP. A small set of service industries is mainly responsible for the acceleration in ICT capital deepening in both regions, but their contribution to growth is lower in the EU-4 than in the U.S. TFP in these industries accelerated in the U.S in the 1990s, but not in Europe. In addition, widespread deceleration in non-ICT capital deepening in the EU-4 has led to a European productivity slowdown. This is linked to wage moderation in the 1990s.

Date: 2003
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Journal Article: ICT AND EUROPE's PRODUCTIVITY PERFORMANCE: INDUSTRY‐LEVEL GROWTH ACCOUNT COMPARISONS WITH THE UNITED STATES (2005)
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