Computers and Economic Growth in Finland

Petri Niininen

No wp-1998-148, WIDER Working Paper Series from World Institute for Development Economic Research (UNU-WIDER)

Abstract: The effect of computer technology on Finnish economic growth in 1983-96 is examined to shed light into the famous productivity paradox. Using the neoclassical growth accounting framework, the contribution of computer hardware, software and labor to gross and net output growth is assessed at aggregate level. The results suggest that a considerable amount of real growth can be attributed to computers. Almost eight per cent of the net growth can be attributed to information technology. This is about two thirds of the contribution of other fixed capital stock.

Keywords: Economic growth; Information technology; Productivity (search for similar items in EconPapers)
Date: 1998
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