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Information Technology, Productivity, and Economic Growth International Evidence and Implications for Economic Development

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Development Economics

Microeconomics

Macroeconomics

Information Technology, Productivity, and Economic Growth

International Evidence and Implications for Economic Development

Edited by Matti Pohjola

WIDER Studies in Development Economics

302 pages | numerous tables and graphs | 234x156mm

978-0-19-924398-3 | Hardback | 12 April 2001

Price: £86.00

This item is printed to order and supplied on a firm sale basis. Items which are printed to order are normally despatched and charged within 5-10 days.

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Presents new international evidence on the impact of information technology on productivity and economic growth
The first study in which the connection between information technology and economic development is analysed quantitatively

The often-advocated view that the information technology revolution will change the world must stem from the basic premiss that investment in IT has a visible impact on productivity and economic growth. But how can we measure this impact and how large is it?

By surveying previous studies and by presenting new micro- and macroeconomic evidence, this collection shows that in recent years the use of IT in the production of goods and services has had a strong influence on productivity and economic growth in industrial and in newly industrialized countries. Yet developing countries seem neither to have invested in IT nor benefited from such investments to the same extent as industrial countries. There is concern that information is becoming a commodity, like income and wealth, by which countries are classified as rich and poor.

The contributors to this volume argue that investment in infrastructure, physical capital, and education is the key to economic development. This is an old policy prescription in the economics of development. What is new is the suggestion that the IT content of these investments should be high. The use of IT is so widely spread throughout the world economy that no single country can avoid investing in this technology if it wants to improve the standard of living of its citizens.

Besides providing citizens with access to IT and to IT education and training, governments should promote participation in the information society, thus generating a sufficiently strong demand base for information products. By developing advanced applications of IT, and by becoming a model for the private sector, governments can alter worker, firm, and consumer attitudes, and lower their costs of adopting IT. The use of IT, not necessarily its production, is what matters for economic development.

Readership: Economists and policy-makers in international organizations working on information technology and development (World Bank, UN etc); development economists; researchers and graduate students working on the impacts of IT; students interested in the "New Economy".

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Information Technology, Productivity, and Economic Growth

International Evidence and Implications for Economic Development

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