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Information Technology and the G7 Economies

Information Technology and the G7 Economies

(p.325) 11 Information Technology and the G7 Economies
Hard-to-Measure Goods and Services
Dale W. Jorgenson
University of Chicago Press

This chapter presents international comparisons of economic growth among the G7 nations—Canada, France, Germany, Italy, Japan, the United Kingdom, and the United States. These comparisons focus on the impact of investment in information technology (IT) equipment and software over the period 1980 to 2001. The chapter is organized as follows. Section 11.2 outlines the methodology for this study. Section 11.3 considers the impact of IT investment and the relative importance of investment and productivity in accounting for economic growth among the G7 nations. Section 11.4 looks at alternative approaches to international comparisons, and Section 11.5 draws conclusions. The results show a powerful surge in investment in IT and equipment after 1995 for all G7 economies. This accounts for a large portion of the resurgence in U.S. economic growth, but contributes substantially to economic growth in the remaining G7 economies as well.

Keywords:   economic growth, Canada, France, Germany, Italy, Japan, United Kingdom, United States, IT investment, software

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