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Abstract:

cover
CEP Discussion Paper
Productivity Growth and the Role of ICT in the United Kingdom: An Industry View, 1970-2000
Nicholas Oulton and Sylaja Srinivasan March 2005
Paper No' CEPDP0681:
Full Paper (pdf)

JEL Classification: O470; O520; D240


Tags: productivity; tfp; ict

We use a new industry-level dataset to quantify the role of ICT in explaining productivity growth in the UK, 1970-2000. The dataset is for 34 industries covering the whole economy (31 in the market sector). Using growth accounting, we find that ICT capital played an increasingly important, and in the 1990s the dominant, role in accounting for labour productivity growth in the market sector. Econometric evidence also supports an important role for ICT. We also find econometric evidence that a boom in complementary investment in the 1990s could have led to a decline in the conventional measure of TFP growth.