A study of information technology and economic growth since 1995 that tracks the American growth resurgence to its sources within individual industries.
The American economy has experienced renewed growth since 1995, with this surge rooted in the development and deployment of information technology (IT). This book traces the American growth resurgence to its sources within individual industries, documents the critical role of IT, and shows how U.S. nvestment in IT has important parallels in other developed countries.In analyzing the experience in the United States, the authors identify four IT-producing industries, 17 IT-using industries, and 23 non-IT industries and show that the IT-producing and IT-using industries play a disproportionate role in the American growth resurgence. These industries account for only about 30 percent of US GDP but contributed half of the acceleration in economic growth. The study finds that differences in the relative importance of IT-producing industries in other G7 countries have contributed to wide disparities in the impact of IT on economic growth.
Productivity, Volume 3 will be of special interest to analysts of the "new economy" and its remarkable persistence through periods of boom and recession.
Dale W. Jorgenson is Samuel W. Morris University Professor of Economics at Harvard University.
Mun S. Ho is Visiting Fellow at Harvard's Institute for Quantitative Social Science.
Kevin Stiroh is Assistant Vice President in the Banking Studies Function at the Federal Reserve Bank of New York.
Jorgenson and his talented coauthors Ho and Stiroh have been among the leaders in analyzing the post-1995 revival in American productivity growth. Notable in this volume is their pathbreaking analysis of human capital, with its prediction that the contribution of higher labor quality to U.S. economic growth will steadily diminish over the next few decades. Lovers of controversy will relish the authors' unique interpretation of 'the demise' of growth accounting.
Robert J. Gordon, Stanley G. Harris Professor in the Social Sciences, Department of Economics, Northwestern University