Information Technology and the G7 Economies

• Author(s): Dale W. Jorgenson • Published: December 2003
• Pages in paper: 32


A powerful surge in investment in information technology and equipment after 1995 characterizes all of the G7 economies. This accounts for a large portion of the resurgence in US economic growth, but contributes substantially to economic growth in the remaining G7 economies as well. Another significant source of the G7 growth resurgence after 1995 is a jump in productivity growth in IT-producing industries. These findings are based on new data and new methodology for analyzing the sources of economic growth. Internationally harmonized prices for information technology equipment and software are essential for capturing differences among the G7 nations.

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