ICT AND EUROPE's PRODUCTIVITY PERFORMANCE: INDUSTRY-LEVEL GROWTH ACCOUNT COMPARISONS WITH THE UNITED STATES

  1. Robert Inklaar1,
  2. Mary O'Mahony2,
  3. Marcel Timmer3,*

Article first published online: 25 NOV 2005

DOI: 10.1111/j.1475-4991.2005.00166.x

Issue

Review of Income and Wealth

Review of Income and Wealth

Volume 51, Issue 4, pages 505–536, December 2005

Additional Information

How to Cite

Inklaar, R., O'Mahony, M. and Timmer, M. (2005), ICT AND EUROPE's PRODUCTIVITY PERFORMANCE: INDUSTRY-LEVEL GROWTH ACCOUNT COMPARISONS WITH THE UNITED STATES. Review of Income and Wealth, 51: 505–536. doi: 10.1111/j.1475-4991.2005.00166.x

Author Information

  1. 1

    Groningen Growth and Development Centre, University of Groningen

  2. 2

    Business School, University of Birmingham and National Institute of Economic and Social Research, London

  3. 3

    Groningen Growth and Development Centre, University of Groningen

* *Marcel P. Timmer, Faculty of Economics, University of Groningen, PO Box 800, 9700 AV Groningen, The Netherlands (m.p.timmer@rug.nl).

Publication History

  1. Issue published online: 25 NOV 2005
  2. Article first published online: 25 NOV 2005

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In this paper we present a new industry-level database to analyze sources of growth in four major European countries: France, Germany, Netherlands and the United Kingdom (EU-4), in comparison with the United States for the period 1979–2000. Aggregate labor productivity growth is decomposed into industry-level contributions of labor quality, ICT and non-ICT capital deepening and TFP. A small set of service industries is mainly responsible for the acceleration in ICT capital deepening in both regions, but their contribution to growth is lower in the EU-4 than in the U.S. TFP in these ICT-intensive services accelerated in the U.S. in the 1990s, but not in Europe. In addition, widespread deceleration in non-ICT capital deepening in the EU-4 has led to a European labor productivity slowdown.

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