This paper presents new data on the sources of growth for the Japanese economy over the period 1960–2000. The principal innovation is the incorporation of detailed information for individual industries, including those involved in the production of computers, communications equipment, and electronic components as information technology equipment. We show that economic growth is dominated by investments and productivity growth in information technology, both for individual industries and the economy as a whole. We also show that the revival of total factor productivity growth accounts for the modest resurgence of the Japanese economy since 1995.
This paper addresses the impact of investment in information technology (IT) on the recent resurgence of world economic growth. We describe the growth of the world economy, seven regions and 14 major economies during the period 1989–2003. We allocate the growth of world output between input growth and productivity and find, surprisingly, that input growth greatly predominates! The contributions of IT investment have increased in all regions, but especially in industrialized economies and Developing Asia. Differences in per capita output are explained by differences in per capita input, rather than by variations in productivity.
Portuguese translation in Manuel Castells and Gustavo Cardoso (eds.), A Sociedad em Reade , Lisbon, Imprensa Nacional, 2006, pp. 65-114.
Reprinted in CESIfo Economic Studies , Vol. 49, No. 1, 2003, pp. 27-48.
Reprinted in William H. Dutton, Brian Kahin, Ramon O'Callaghan, and Andrew W. Wyckoff, Transforming Enterprise,
Cambridge, MIT Press, 2005, pp.49-76.
Updated and reprinted in Revista di Politica Economica, Vol. 95, Nos. 1-2, January-February 2005, pp. 25-56.
French translation "Les technologies d'information et les économies du G7,"L'Actualité Économique, Vol. 81, Nos. 1-2, Mars-Juin 2005, pp. 15-46.