Online citations, reference lists, and bibliographies.
← Back to Search

ICT And Productivity In Europe And The United States. Where Do The Differences Come From

Bart van Ark, R. Inklaar, R. Mcguckin
Published 2003 · Business, Economics

Cite This
Download PDF
Analyze on Scholarcy
Share
In this paper we analyse labour productivity growth in 51 industries in European countries and the United States. Using shift-share techniques we identify the industries in which the U.S. is leading most strongly. With a detailed decomposition analysis we identify whether the sources of the U.S. advantage are due to faster productivity growth, higher industry productivity levels relative to the country aggregate, different employment shares or faster change in employment shares of rapidly growing industries. The results show that U.S. productivity has grown faster than in the EU because of a larger employment share in the ICT producing sector and faster productivity growth in services industries that make intensive use of ICT. Wholesale and retail trade and the financial securities industry account for most of the difference in aggregate productivity growth between the EU and the U.S. (JEL N10, O47, O57)
This paper references
The accuracy of the BLS productivity measures
E. Dean (1999)
10.1111/1475-4991.00038
Computer Price Indices and International Growth and Productivity Comparisons
P. Schreyer (2002)
Measuring the New Economy
J. S. Landefeld (2001)
10.1787/151634666253
The Contribution of Information and Communication Technology to Output Growth: A Study of the G7 Countries
P. Schreyer (2000)
High Tech Industry Productivity and Hedonic Price Indexes
J. Triplett (1996)
Changing Gear: Productivity, ICT and Service Industries in Europe and the United States
B. Ark (2002)
The Progress of Computing
W. Nordhaus (2001)
Understanding the contribution of Information Technology relative to other factors
Mckinsey Global (1995)
Common patterns , different trends , ICT use and productivity in Europe and the United States ” , mimeo
B. van Ark
10.1162/003465303772815736
Computing Productivity: Firm-Level Evidence
Erik Brynjolfsson (2003)
Engines of Growth
H. Shapiro (1994)
Innovatie en productiviteit
R. Inklaar (2002)
ICT and Growth Accounting" for DG Economics and Finance of the European Commission
B Ark (1980)
10.1016/S1574-0684(05)01018-X
General Purpose Technologies
B. Jovanovic (2005)
IT in the European Union: Driving Productivity Divergence?
M. Timmer (2003)
Information Technology and Growth in Europe
Francesco Daveri (2001)
EU Productivity and Competitiveness: An Industry Perspective Can Europe Resume the Catching-up Process?
M. O’Mahony (2003)
10.3386/W9120
The Link between Aggregate and Micro Productivity Growth: Evidence from Retail Trade
L. Foster (2002)
10.3386/W8771
Technology and Economic Performance in the American Economy
R. Gordon (2002)
Employment in Manufacturing
S Fabricant (1942)
10.2139/SSRN.233139
The Resurgence of Growth in the Late 1990s: Is Information Technology the Story?
Stephen D. Oliner (2000)
Making the Most of the Information Age : Productivity and Structural Reform in the New Economy ”
R. H. McGuckin (2001)
ICT Investment and Growth Accounts for the European UnionICT and Growth Accounting" for DG Economics and Finance of the European Commission
B Ark (1980)
Changing Gear’ Productivity, ICT and Service Industries: Europe and the United States”, in Christensen and Maskell (eds.) The Industrial Dynamics of the New Digital
Ark (2003)
McGuckin (2003b), “Common patterns, different trends, ICT use and productivity in Europe and the United States”, mimeo
Ark (2003)
ICT investments and growth accounts for the European Union
B. Ark (2002)
ICT and productivity in Europe and the United States
Bart van Ark (2003)
Securities (0.235, 0.119) 0.035) Legend: Industry (productivity growth effect
International Accounts Data Needs: Plans, Progress, and Priorities
Ralph H. Kozlow (2000)
10.1257/AER.91.1.1
Information Technology and the U.S. Economy
D. Jorgenson (2001)
10.2139/ssrn.318923
The New Economy in Europe (1992-2001)
Francesco Daveri (2002)
Gross Domestic Product by Industry for 1997–99
Brian Moyer (1999)
Common patterns, different trends, ICT use and productivity in Europe and the United States
B Ark (2003)
10.1257/AER.89.2.109
Information Technology and Growth
D. Jorgenson (1999)
Understanding the contribution of Information Technology relative to other factors
Mckinsey Global Institute (1995)
Gross Domestic Product by Industry for 1999-2001
R. J. McCahill (2002)
Performance 2000: productivity, employment and income in the world's economies
R. Mcguckin (2001)
10.1787/ECO_STUDIES-V2002-ART5-EN
The contribution of information and communication technologies to economic growth in nine OECD countries
A. Colecchia (2002)
General Purpose TechnologiesEngines of Growth
T F Bresnahan (1995)
General Purpose Technologies, Engines of Growth?
T. F. Bresnahan (1995)
10.1093/CESIFO/49.1.27
Lessons for Europe from the U.S. Growth Resurgence
D. Jorgenson (2003)
“ High - Tech Industry Productivity and Hedonic Price Indices ” in
J. E. Triplett (1996)
Information Technology and Growth in Europe”, University of Parma and IGIER, May (http://digilander.iol.it/crenos/cnr67701/Daveri.pdf)
F. Daveri (2001)
Information Technology and the US Economy,
D. W. Jorgenson (2001)
10.1023/A:1011170416813
Do Computers Make Output Harder to Measure?
R. Mcguckin (2001)
Productivity and Competitiveness: An Industry Perspective Can Europe Resume the Catching-up Process?, Office for Official Publications of the European Communities
M O 'mahony (2003)
10.2139/ssrn.318692
Information Technology and Productivity: Where are We Now and Where are We Going?
D. Sichel (2002)
10.2307/2279355
Employment in Manufacturing, 1899-1939.
D. Creamer (1942)
Information Technology, Education, and the Sources of Economic Growth across U.S. Industries
D. Jorgenson (2002)
10.1257/JEP.14.4.23
Beyond Computation: Information Technology, Organizational Transformation and Business Performance
Erik Brynjolfsson (2000)
Therenewal of th old economy: Europe in an internationally comparative perspective
B. Ark (2000)
THE NEW ECONOMY IN EUROPE
Francesco Daveri (2002)
10.1016/S0167-6245(01)00063-4
The New Economy: facts, impacts and policies
Matti Pohjola (2002)
Changing Gear" Productivity, ICT and Service Industries: Europe and the United States', GGGD Research Memorandum, no. GD- 60
B Ark (2002)
Baumol's Disease' has been cured: IT and Multifactor Productivity in U.S. Services Industries " , mimeo Retail trade (0.282, 0.035) Wholesale trade (0
J E Triplett (1935)
Possible Measurement Bias in Aggregate Productivity Growth
William Gullickson (1999)
Information Technology and Growth in Europe”, University of Parma and IGIER
F. Daveri (2001)
Making the Most of the Information Age: Productivity and Structural Reform in the New Economy”, Perspectives on a Global Economy, Report 1301-01-RR, October
R. H. McGuckin (2001)
10.2139/ssrn.923623
Information Technology and the U.S. Productivity Revival: What Do the Industry Data Say?
K. Stiroh (2001)
10.1006/REDY.2002.0170
ICT Investment and Economic Growth in the 1990s: Is the United States a Unique Case? A Comparative Study of Nine OECD Countries
A. Colecchia (2002)
Lessons for Europe from the US Growth Resurgence,
D. W. Jorgenson (2003)
EU Productivity and Competitiveness : An Industry Perspective Can Europe Resume the Catchingup Process ? , Office for Official Publications of the European Communities
P. Schreyer (2003)



This paper is referenced by
ICT4D and the human development and capabilities approach: the potentials of information and communication technology
J. Hamel (2010)
Gospodarcze źródła globalnego przywództwa USA i pozycja Europy Wschodniej w perspektywie 10-15 lat
Janusz T. Hryniewicz (2012)
10.1080/10438599.2012.731166
Young leading innovators and the EU's R&D intensity gap
M. Cincera (2010)
10.1007/978-3-319-63197-4_10
The impact of ageing on Welfare and labour productivity : An econometric analysis for the Netherlands
Lourens Broersma (2017)
10.1111/j.1475-4991.2005.00166.x
ICT and Europe's Productivity Performance: Industry-Level Growth Account Comparisons with the United States
R. Inklaar (2003)
Productivity, Hours Worked, and Tax/Benefit Systems in Europe and Beyond
Ville Kaitila (2006)
10.1162/016366005774859742
Europe inside out
Robin Niblett (2005)
10.4018/978-1-61520-709-1.CH010
Does Information and Communication Technologies Sustain Economic Growth? The Underdeveloped and Developing Countries Case
Burcu Türkcan (2009)
Supply-side policy coordination in the European Union
G. Tabellini (2006)
10.2139/ssrn.1004516
Digital Prosperity: Understanding the Economic Benefits of the Information Technology Revolution
R. Atkinson (2007)
The Productivity impact of E-Commerce in the UK, 2001: Evidence from microdata
Ana Rincón-Aznar (2005)
Capital Equipment, R&D and Wage Inequality in the US and Germany
W. Koeniger (2005)
10.1093/cesifo/ifn024
Prospects for Growth in the Euro Area
K. McQuinn (2006)
10.2139/ssrn.949844
Productivity Growth in Service Industries - Has 'Baumol's Disease' Really Been Cured?
J. Hartwig (2006)
10.2139/ssrn.984683
Aging, Labor Turnover and Firm Performance
P. Ilmakunnas (2007)
10.1007/978-981-10-4756-5_8
Overall Summary, Hypotheses Test, and Policy Implications
Nabaz T. Khayyat (2017)
ICT and Auxiliary Factors on Production Efficiency
O. EgwaliAnnie (2013)
Sources of the German Productivity Demise - Tracing the Effects of Industry-Level ICT Investment
T. Eicher (2007)
Cross-Border Labour Mobility within an Enlarged EU
F. Heinz (2006)
The Relationship between ICT Investment and Productivity in the Canadian Economy: A Review of the Evidence
Andrew Sharpe (2006)
10.1007/S40888-015-0001-3
Impact of ICT diffusion and adoption on sectoral industrial performance: evidence from a panel of European countries
M. Belloc (2015)
Drivers of Growth in the Modern Economy: R&D, Innovation, ICT and Human Capital
M. Rybalka (2015)
Chapter 2 More Jobs but Less Productive ? The Impact of Labour Market Policies on Productivity
(2007)
ICT and productivity: a roadmap for empirical research
(2012)
10.5202/REI.V1I2.3
Tangible and Intangible Capital and the Pattern of Specialisation in the EU
Ioannis Bournakis (2010)
10.1007/978-981-10-4756-5_7
Productivity Analysis of South Korean Industrial Sector
Nabaz T. Khayyat (2017)
10.1016/J.TELPOL.2019.101854
Intangible capital, ICT and sector growth in China
Q. Li (2020)
10.1007/S11628-013-0217-7
Shaping innovation in European knowledge-intensive business services
C. Hipp (2015)
ICT and Productivity Growth in Transition Economies: Two-Phase Convergence and Structural Reforms
M. Piatkowski (2005)
10.2139/ssrn.2027817
Characterizing the Evolution of the EU-US R&D Intensity Gap using Data from Top R&D Performers
Juraj Stancík (2012)
10.3152/030234210X508615
Introduction to a special issue: New insights on EU-US comparison of corporate R&D
P. Moncada-Paternò-Castello (2010)
Innovation, jobs and growth in Europe: Tackling deficiencies in EU's innovation capacity
Reinhilde. Veugelers (2006)
See more
Semantic Scholar Logo Some data provided by SemanticScholar