Information and communication technologies in a multi-sector endogenous growth model

Vourvachaki, Evangelia (2006) Information and communication technologies in a multi-sector endogenous growth model. CEPDP (750). London School of Economics and Political Science. Centre for Economic Performance, London, UK. ISBN 0753020564

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Abstract

This paper investigates the impact of Information and Communication Technologies (ICT) on growth in an economy, consisting of three sectors, ICT-producing, ICT-using and non-ICT-using. The benefits from ICT come from the falling prices of the ICT-using sector’s good, which is used for the production of intermediate goods. Their falling prices provide incentives for investment for sectors using them, so the non-ICT using sector experiences sustained growth driven by capital accumulation. Rates of growth across the three sectors differ, but the aggregate economy is on a balanced growth path with constant labour shares across sectors. US evidence confirms the model’s predictions.

Item Type:	Monograph (Discussion Paper)
Official URL:	http://cep.lse.ac.uk
Additional Information:	© 2006 Evangelia Vourvachaki
Divisions:	Centre for Economic Performance
Subjects:	H Social Sciences > HB Economic Theory
JEL classification:	O - Economic Development, Technological Change, and Growth > O4 - Economic Growth and Aggregate Productivity > O40 - General O - Economic Development, Technological Change, and Growth > O4 - Economic Growth and Aggregate Productivity > O41 - One, Two, and Multisector Growth Models
Date Deposited:	21 Jul 2008 17:33
Last Modified:	13 Sep 2024 19:59
URI:	http://eprints.lse.ac.uk/id/eprint/19800

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