IT in the European Union: Driving Productivity Divergence?
Published: Jan 1, 2003
Abstract
This paper analyses the contributions of IT-capital deepening and total factor productivity growth (TFP) in IT-production on aggregate labour productivity growth patterns within the European Union in comparison with the US. We find that differences in the direct effects of IT almost fully explain the US lead in labour productivity growth over the EU aggregate over the period 1995-2001. However differences in the direct effects of IT are by no...
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