Economic Growth and Information Technology: A Note

Selim, Tarek (2005): Economic Growth and Information Technology: A Note. Published in: Journal of Business and Economics Research , Vol. 3, No. No. 11 (November 2005)

Abstract

The usage of information technology (IT) towards sustainable economic growth is found to yield three main effects: (1) an efficiency effect, (2) a scale effect, and (3) a capital utilization effect. The first two effects are multiplicative whereas the third effect is additive on aggregate output productivity. In essence, this paper suggests that IT is more productive only if the economy is capable of replacing its sustainable capital resources at a rate exceeding that of consumption sacrifice.

• Item Type: MPRA Paper
• Language: English
• Keywords: information technology, growth theory, neoclassical
• Subjects: E - Macroeconomics and Monetary Economics > E1 - General Aggregative Models; E - Macroeconomics and Monetary Economics > E1 - General Aggregative Models > E13 - Neoclassical; O - Economic Development, Innovation, Technological Change, and Growth > O4 - Economic Growth and Aggregate Productivity

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