Hostname: page-component-78c5997874-j824f Total loading time: 0 Render date: 2024-11-14T01:33:34.776Z Has data issue: false hasContentIssue false
  • English
  • Français

THE EFFECT OF INFORMATION TECHNOLOGY AND HUMAN CAPITAL ON ECONOMIC GROWTH

Published online by Cambridge University Press:  13 July 2010

Elena Ketteni ,
Theofanis Mamuneas  and
Thanasis Stengos
Elena Ketteni
Affiliation:
University of Cyprus and Frederick University
Theofanis Mamuneas
Affiliation:
University of Cyprus
Thanasis Stengos*
Affiliation:
University of Guelph
*
Address correspondence to: Thanasis Stengos, Department of Economics, University of Guelph, Guelph, Ontario N1G 2W1, Canada; e-mail: [email protected].
Get access Rights & Permissions [Opens in a new window]

Abstract

In this paper we compare the impact of hardware, software, and communication equipment, widely referred to as information and communication technologies (ICT), on economic growth among the advanced industrialized countries. We use nonparametric techniques that allow us to estimate the output elasticities of ICT and human capital directly for each country and time period in our sample. Our results indicate that countries with high levels of ICT capital have high output elasticities of human capital. In addition, countries with high levels of human capital have high output elasticities of ICT, a result suggesting complementarity between the two.

Keywords

Information and Communication TechnologiesProductivityHuman CapitalSemiparametric Smooth Coefficient Model
Type
Articles
Information
Macroeconomic Dynamics , Volume 15 , Issue 5 , November 2011 , pp. 595 - 615
Copyright
Copyright © Cambridge University Press 2010

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

REFERENCES

Acemoglu, Daron (1998) Why do new technologies complement skills? Directed technical change and wage inequality. Quarterly Journal of Economics 113 (4), 1055–1089.Google Scholar
Acemoglu, Daron (2001) Factor Prices and Technical Change: From Induced Innovations to Recent Debates. Department of Economics working paper 01-39, Massachusetts Institute of Technology.CrossRefGoogle Scholar
Acemoglu, Daron (2002) Technical change, inequality and the labor market. Journal of Economic Literature 40 (1), 7–72.CrossRefGoogle Scholar
Barro, Robert J. and Lee, Jong-Wha (2001) International Data on Educational Attainment: Updates and Implications. CID Working Paper 42.CrossRefGoogle Scholar
Barua, Anitesh and Lee, Byungtae (1997) The information technology productivity paradox revisited: A theoretical and empirical investigation in the manufacturing sector. International Journal of Flexible Manufacturing Systems 9, 145–166.CrossRefGoogle Scholar
Basu, Susanto, Fernald, John G., Oulton, Nicholas, and Sylana, Srinivasan (2003) The Case of the Missing Productivity Growth: Or Does Information Technology Explain Why Productivity Accelerated in the US but Not the UK? NBER working paper 10010.Google Scholar
Bermand, Eli, Bound, John, and Grilicliches, Zvi (1994) Changes in the demand for skilled labor within U.S. manufacturing: Evidence from the Annual Survey of Manufacturers. Quarterly Journal of Economics 109 (2), 367–397.Google Scholar
Bermand, Eli, Bound, John, and Stephen, Machin (1998) Implications of skill-biased technological change: International evidence. Quarterly Journal of Economics 113 (4), 1245–1279.CrossRefGoogle Scholar
Bosworth, Barry P. and Tripplet, Jack E. (2007) The early 21st century US productivity expansion is still in services. International Productivity Monitor 14, 3–19.Google Scholar
Bresnahan, Timothy F., Brynjolfosson, Erik, and Hitt, Lorin M. (2002) Information technology, workplace organization and the demand for the skilled labor: Firm level evidence. Quarterly Journal of Economics 117 (1), 404–437.CrossRefGoogle Scholar
Cai, Z., Das, M., Xiong, H., and Wu, X. (2006) Functional coefficient instrumental variable models. Journal of Econometrics 133, 207–241.CrossRefGoogle Scholar
Caselli, Francesco (1999) Technological revolutions. American Economic Review 89 (1), 78–102.CrossRefGoogle Scholar
Chun, Hyunbae (2003) Information technology and demand for the educated workers: Disentangling the impacts of adoption versus use. Review of Economic and Statistics 83 (1), 1–8.CrossRefGoogle Scholar
Colecchia, Alessandra and Schreyer, Paul (2002) ICT investment and economic growth in the 1990s: Is the United States a unique case? Review of Economic Dynamics 5, 408–442.CrossRefGoogle Scholar
Diewert, W. Erwin (1976) Exact and superlative index numbers. Journal of Econometrics 4, 115–146.Google Scholar
Durlauf, Steven N. and Johnson, Paul A. (1995) Multiple regimes and cross-country growth behavior. Journal of Applied Econometrics 10, 365–384.CrossRefGoogle Scholar
Durlauf, Steven N., Johnson, Paul, and Temple, Johnathan R.W. (2005) Growth econometrics. In Aghion, P. and Durlauf, S. (eds.), Handbook of Economic Growth, vol. 1, pp. 555–677. Amsterdam: Elsevier.Google Scholar
Falk, Martin and Stein, Katja (2001) The Impact of Information Technology on High-Skilled Labor in Services. Evidence from Firm Level Data. Mimeo, Yale University.CrossRefGoogle Scholar
Fan, Jiwen (1992) Design-adaptive nonparametric regression. Journal of the American Statistical Association 87, 998–1004.CrossRefGoogle Scholar
Fan, Jiwen and Zhang, Wenyang (1999) Statistical estimation in varying coefficient models. Annals of Statistics 27, 1491–1518.CrossRefGoogle Scholar
Fan, Yianqin and Li, Qi (1996) Consistent model specification tests: Omitted variables, parametric and semiparametric functional forms. Econometrica 64, 865–890.CrossRefGoogle Scholar
Fan, Yianqin, Li, Qi, and Thanasis, Stengos (1995) Root-N-consistent semiparametric regression with conditional heteroskedastic disturbances. Journal of Quantitative Economics 11, 229–240.Google Scholar
Feldstein, M. (2003) Why Is Productivity Growing Faster? NBER working paper 9530.CrossRefGoogle Scholar
Galor, Oded (2005) The transition from stagnation to growth: Unified growth theory. In Durlauf, S. and Aghion, P. (eds.), Handbook of Economic Growth, pp. 171–293. Amsterdam: Elsevier.Google Scholar
Galor, Oded and Moav, Omer (2000) Ability-biased technological transition, wage inequality and economic growth. Quarterly Journal of Economics 115 (2), 469–497.CrossRefGoogle Scholar
Galor, Oded and Tsiddon, Daniel (1997) Technological progress, mobility and economic growth American Economic Review 87 (3), 363–382.Google Scholar
Galor, Oded and Zeira, Joseph (1993) Income distribution and macroeconomics. Review of Economic Studies 60 (1), 35–52.CrossRefGoogle Scholar
Gordon, Robert J. (2004) Why Was Europe Left at the Station When America's Productivity Locomotive Departed? NBER working paper 10661.CrossRefGoogle Scholar
Hoon, Y-S. (2003) Does information technology contributed to economic growth in developing countries? A cross country analysis. Applied Economics Letters 10 (11), 679–682.Google Scholar
Jorgenson, Dale W. and Vu, Khuongs (2005) Information technology and the world economy. Scandinavian Journal of Economics 107 (4), 631–650.CrossRefGoogle Scholar
Kalaitzidakis, Pantelis, Mamuneas, Theofanis, Savvides, Andreas, and Thanasis, Stengos (2001) Measures of human capital and nonlinearities in economic growth. Journal of Economic Growth 6, 229–254.CrossRefGoogle Scholar
Ketteni, Elena (2009) Information technology and economic performance in U.S. industries. Canadian Journal of Economics 42 (3), 844–865.CrossRefGoogle Scholar
Ketteni, Elena, Mamuneas, Theofanis, and Thanasis, Stengos (2007) Nonlinearities in economic growth: A semiparametric approach applied to information technology data. Journal of Macroeconomics 29, 555–568.CrossRefGoogle Scholar
Kourtellos, Andros (2003) Modelling parameter heterogeneity in cross-country regression models. Department of Economics mimeo, University of Cyprus.Google Scholar
Li, Q., Huang, C.J., Li, D., and Fu, T. (2001) Semiparametric smooth coefficient models. Journal of Business and Economic Statistics 20 (3), 412–422.CrossRefGoogle Scholar
Mamuneas, Theofanis, Savvides, Andreas, and Thanasis, Stengos (2006) Economic development and the return to human capital: A smooth coefficient semiparametric approach. Journal of Applied Econometrics 21, 111–132.CrossRefGoogle Scholar
Masanjah, W.H. and Papageorgiou, Chris (2004) The Solow model with CES technology: Nonlinearities and parameter heterogeneity. Journal of Applied Econometrics 19, 171–201.CrossRefGoogle Scholar
Matteucci, N., O'Mahony, Mary, Robinson, Catherine, and Zwick, T. (2005) Productivity, workplace performance and ICT: Industry and firm-level evidence for Europe and the US. Scottish Journal of Political Economy 52 (3), 359–386.CrossRefGoogle Scholar
Oliner, Stephen D. and Sichel, Daniel E. (2003) Information technology and productivity: Where are we now and where are we going? Journal of Policy Modelling 25, 477–503.CrossRefGoogle Scholar
Pilat, Dirk and Schreyer, Paul (2004) The OECD productivity database: An overview. International Productivity Monitor 8, 59–65.Google Scholar
Robinson, Peter M. (1988) Root-N-consistent semiparametric regression. Econometrica 56, 931–954.Google Scholar
Siegel, Donald (1997) The impact of computers on manufacturing productivity growth: A multiple indicators-multiple causes approach. Review of Economics and Statistics 79 (1), 68–78.CrossRefGoogle Scholar
Stiroh, Kevin J. (1998) Computers, productivity and input substitution. Economic Inquiry 36 (2), 175–191.CrossRefGoogle Scholar
Stiroh, Kevin J. (2002) Information technology and the US productivity revival: What do the industry data say? American Economic Review 92 (5), 1559–1576.Google Scholar
Timmer, Marcel, O'Mahony, Mary, and van Ark, Bart (2007) EU KLEMS growth and productivity accounts: An overview. International Productivity Monitor 14, 71–85.Google Scholar
van Ark, Bart, Inklaar, Robert, and McGuckin, Robert H. (2003) The contribution of ICT-producing and ICT-using industries to productivity growth: A comparison of Canada, Europe and the United States. International Productivity Monitor 6, 56–63.Google Scholar
Vikram, Nehru and Ashok, Dhareshwar (1993) A new database on physical capital stock: Sources, methodology and results. Rivista de Analisis Economico 8 (1), 37–59.Google Scholar
Vikram, Nehru, Swanson, Eric, and Ashutosh, Dubey (1995) A new database on human capital stock in developing and industrial countries: Sources, methodology and results. Journal of Development Economics 46, 379–401.Google Scholar